World today have become a :

Robert Alan said that : Together we can help transform the global economy into a global community.

Meaning of Globalization :

Globalisation is the process which enables the geographical, social, cultural,political and economic movement internationally more easily.

"Globalisation refers to growing economic interdependence among countries as reflected in increasing crossborder flows of three types of commodities: goods and services, capital, and know how."

The Elements of Globalization :

A.Globalization of Markets:
It refers to the merging of national markets into one huge global marketplace.

B.Globalization of Production:
It refers to the sourcing of goods and services from locations around the world to take advantage of national differences in the cost and quality of factors of production.

C.Falling Barriers to Trade and Investment:

The falling of barriers to international trade enables firms to view the world as their market.

D.Technological Innovation:
Technological changes have achieved advances in communication, information processing, and transportation technology, including the Internet and the World Wide Web .

Effects of Globalization :

Globalization has tremendously affected world in various different aspects : Industrial Financial Economic

Political
Informational Competition Ecological Cultural Social Technical

Steps Taken to Globalize Indian Economy:

Some of the steps taken to globalize our economy were:

1. Devaluation:
To solve the balance of payment problem Indian currency were devaluated by 18 to 19%.

2. Disinvestment:
To make the LPG model smooth many of the public sectors were sold to the private sector.

3. Allowing Foreign Direct Investment (FDI):

FDI was allowed in a wide range of sectors such as Insurance (26%), defense industries (26%) etc.

4. NRI Scheme:
The facilities which were available to foreign investors were also given to NRI's.

Impact of Globalization on India :

Economic growth has been high. Exports have boomed. Incidence of poverty has been reduced. Employment has surged and Long-term inflation rate has gone down.

Scarcity of goods have disappeared and the

quality of products available have improved substantially . Indian companies are setting up companies abroad. India has better technological development for the benefit of the common man .

The Merits of Globalization :

There is an International market for companies and for consumers there is a wider range of products to choose from. Increased free trade between nations. Increased liquidity of capital allowing investors in developed nations to invest in developing nations. Corporations have greater flexibility to operate across borders Global mass media ties the world together Increased flow of communications allows vital information to be shared between individuals and corporations around the world Greater ease and speed of transportation for goods and people Reduction of cultural barriers Technological development has resulted in reverse brain drain in developing countries.

The Demerits of Globalization :

The outsourcing of jobs to developing countries has resulted in loss of jobs in developed countries.
There is a greater threat of spread of communicable diseases. There is an underlying threat of multinational corporations with immense power ruling the globe. For smaller developing nations at the receiving end, it could indirectly lead to a subtle form of colonization.

Conclusion on Globalization :

Globalisation has shrunk the world today now distance between two countries is not there . It enables the geographical, social, cultural, political and economic movement internationally more easily.