Skip to main content

• INTRODUCATION
Globalization or globalisation is the process of interaction and integration among people, companies, and governments worldwide. As a complex and multifaceted phenomenon, globalization is considered by some as a form of capitalist expansion which entails the integration of local and national economies into a global, unregulated market economy.
Liberalization (or liberalisation) is any process whereby a state lifts restrictions on some private individual activities. Liberalization occurs when something which used to be banned is no longer banned, or when government regulations are relaxed. Economic liberalization is the reduction of state involvement in the economy.                   

• Content

Shift from Import-Substitution to Export-Led Growth Strategy:
The failure of import substitution strategy of industrial growth to achieve sustained growth forced India and other develop­ing countries to pursue export-led growth strategy (which is also called outward looking strategy of development).
Increased Market Access:
An important benefit of globalisation is increased market access. Long ago Adam Smith wrote in 1776 that division of labor is limited by the size of market. Free trade accompanying globalisation widens the markets for products of industries.
Globalisation and Transfer of Technology:
Another benefit flowing from globalisation of the Indian economy is that it acts as a mechanism for the transfer of technology from the developed countries. Due to financial constraints, Indian companies are in a position to invest only a small amount of funds on R & D. Therefore, it is through globalisation of its economy that we will be able to get advanced technology from the developed countries.
Foreign Capital Inflows:
The globalisation or integration of the Indian economy with the world economy is also beneficial because it would give a boost to foreign capital inflows in the form of portfolio investment and foreign direct investment (FDI). Portfolio investment will bring valuable foreign exchange currencies in India and free us of balance of payments difficulties. With sufficient foreign exchange reserves, balance of payments constraint on accelerating the growth process will be removed.


•CONCLUSION 
There were some restrictions and regulations in the economy related to private sectors and market which were liberalised with the condtion from WTO .
Later they have got freedom to decide the price in the market also types of goods to be produced.
But after the globalisation there were no proper benefits to customers and also there were negative impacts on developmental and welfare expenditures.






Comments

Post a Comment

Popular posts from this blog

Customer benefited from increased competition by liberalization and globalisation

Introduction: Liberalization- Liberalization is any process whereby a state lifts restriction on some private individual activities. Liberalization occurs when something which used to be banned is no longer banned, or when government  regulations  are relaxed.  Economic liberalization  is the reduction of state involvement in the economy. Globalization- G lobalization   is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. Discussion: There is strong evidence in many services, not least telecoms, that liberalization leads to lower prices, better quality and wider choice for consumers. Such benefits, in turn, work their way through the economic system and help to improve supply conditions for many other products. Thus, even if some prices rise during liberalization, fo...
1 comment
Read more
 Drawbacks Unregulated capitalism Meaning:- Capitalism is an economic system based on there private ownership of the means of production and their operation for profit. Capitalism include private property, capital accumulation, wage labor , voluntary exchange a price system and competitive market. Discussion:- A market cannot come into being without rule and regulations. Governmental regulation of markets is simply an attempt to assure that some measure of equality exists in our economic system. Human nature and individual differences. In a highly materialistic society like ours some people want more and more of everything that wealth brings: goods and services, resource control, status and power. We have a term for this motive: greed. Furthermore some people are simply better at economic competition than others. Our country rests on two fundamental but contradictory concepts: capitalism is one, and democracy is the other. If capitalism is a competitive sys...
1 comment
Read more

How have customer benefited by increased competition after liberalization and globalization?

Definition:- The Liberalization and Globalization. India under its New Economic Policy approached International Banks for development of the country. These agencies asked Indian government to open its restrictions on trade done by the private sector and between India and other countries. LIBERALIZATION The basic aim of liberalization was to put an end to those restrictions which became hindrances in the development and growth of the nation. The loosening of government control in a country and when private sector companies’ start working without or with fewer restrictions and government allow private players to expand for the growth of the country depicts liberalization in a country. OBJECTIVES OF LIBERALIZATION POLICY To increase competition amongst industries. To encourage foreign trade with other countries with regulated imports and exports. Enhancement of foreign capital and technology. To expand global market frontiers of the country. To diminish the debt bu...
1 comment
Read more