GLOBALIZATION AND

DEVELOPMENT

Submitted
Submitted By:
By:
Submitted to: Subharaj
Subharaj Chakraborty
Chakraborty
Dr. Kavita PGDM-IB/10-12/35
PGDM-IB/10-12/35
 GLOBALIZATION
Globalization
is the term used to describe the changes in
societies and the world economy which
results in increased international trade and
cultural exchange. It describes the increase
of trade and investing due to the falling of
barriers and the interdependence of
countries. In economic contexts, it refers to
the effects of trade, particularly trade
liberalization or "free trade".
Development on the Basis of globalization:
 It leads to Increase in international trade at a faster rate than the
growth in the world economy
 Increase in international flow of capital including foreign direct
investment
 Erosion of national borders through international agreements
leading to organizations like the WTO.
 Increase in the share of the world economy controlled by
multinational corporations
 Increased role of international organizations such as WTO, IMF that
deal with international transactions
 Increase of economic practices like outsourcing by multinational
corporations
 Greater international cultural exchange
 Greater international travel and tourism
 Development of a global telecommunications infrastructure and
greater trans border data flow, using such technologies as the
 Measurement of Globalization

To what extent a country is globalized in a particular

year has until most recently been measured
employing simple proxies like flows of trade,
migration, or foreign direct investment. A more
sophisticated approach to measuring globalization is
the recent index calculated by the Swiss think tank
KOF. The index measures the three main
dimensions of globalization: economic, social, and
political.
 Advantages of Globalization
Goods and people are transported with more
easiness and speed
the possibility of war between the developed
countries decreases
free trade between countries increases
global mass media connects all the people in
the world
As the cultural barriers reduce, the global
village dream becomes more realistic
there is a propagation of democratic ideals
the interdependence of the nation-states
increases
 IMPACT OF GLOBALIZATION ON INDIA
A Global comparison shows that India is now the
fastest growing just after China.
This is major improvement given that India’s
growth rate in the 1970's was very low at 3% and
GDP growth in countries like Brazil, Indonesia,
Korea, and Mexico was more than twice that of
India. Though India's average annual growth rate
almost doubled in the eighties to 5.9% it was still
lower than the growth rate in China, Korea and
Indonesia. The pick up in GDP growth has helped
improve India's global position. Consequently
India's position in the global economy has improved
 Challenges of Globalization
Globalization has four major challenges that have to be
addressed by governments, civil society, and other policy
actors.
 One is to ensure that the benefits of globalization extend
to all countries, That will certainly not happen
automatically.
 The second is to deal with the fear that globalization
leads to instability, which is particularly marked in the
developing world.
 The third challenge is to address the very real fear in the
industrial world that increased global competition will
lead inexorably to a race to the bottom in wages, labor
rights, employment practices, and the environment.
 And finally, globalization and all of the complicated
THANK YOU