It results breaking of national barriers and creation of inter-connectedness.
Globalisation is a composite process through which integration of nation-states across the world can be made by common economic, commercial, political, cultural and technological ties.
Another characteristic of globalisation is the control of economic activities by domestic market and international market.
It also established coordination among the national economy and world economy.
In this way, the imperialist nations gained much at the cost of the colonial countries who had to suffer from the scar of stagnation and poverty.
Persuasive Essay On Random Drug Testing - Globalization In Education Essay
The concept of Globalisation by integrating nation states within the theme work of World Trade Organisation (WTO) is an alternative version of the ‘Theory of Comparative Cost Advantage’ propagated by the classical economists for assuming unrestricted flow of goods between the countries for mutual benefit, especially from Great Britain to other less developed countries or to their colonies.Under globalisation, localities being connected with the world by breaking national boundaries; forging of links between one society and another and between one country and another through international transmission of knowledge, technology, ideas, information, literature and culture.Globalisation makes way for establishing ‘borderless globe’, the ideal of which was articulated by Kemichi Ohmae.Following the same path India had also adopted the same policy since 1991 and started the process of dismantling trade barriers along with abolishing quantitative restrictions (QRs) phase-wise.Accordingly, the Government of India has been reducing the peak rate of customs duty in its subsequent budgets and removed QRs on the remaining 715 items in the EXIM Policy 2001-2002.(v) Globalisation makes domestic industries of developing countries to become conscious about price reduction and quality improvement to their products so as to face foreign competition.(vi) Globalisation discourages uneconomic import substitution and favour cheaper imports of capital goods which reduces capital-output ratio in manufacturing industries.In view of the current global recession and financial crisis, there is a paramount importance of global integration.(i) Globalisation helps to boost the long run average growth rate of the economy of the country through: (a) Improvement in the allocative efficiency of resources; (b) Increase in labour productivity; and (c) Reduction in capital-output ratio. Thus taking the entire world as global village, all the four components are equally important for attaining a smooth path for globalisation. Accordingly, the term, globalisation has four parameters: (a) Permitting free flow of goods by removing or reducing trade barriers between the countries, (b) Creating environment for flow of capital between the countries, (c) Allowing free flow in technology transfer and (d) Creating environment for free movement of labour between the countries of the world.