Introduction 

Globalization means that countries are becoming more connected to the global economy.

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Meaning of Globalisation

Globalisation simply means integrating the economy of the country with the world economy.

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Definition of Globalization 

In the words of Rubens Ricupero (Secretary General of the United Nations Conference on Trade and Development).

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(1) International Trade (2) International Investment (3) International Finance

Indications or Dimensions of Globalisation

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 International Trade:

The share of intra-firm trade has increased from 20 percent to 33  percent in world trade. The share of world trade in the world’s gross  domestic product has risen from 12 percent to 18 percent.

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International Finance:

The International finance sector has developed very rapidly. The finance sector dominates the trade and investment sectors.

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(1) Policies of Liberalisation (2) Technical Revolution (3) New Forms of Industrial Organisation (4) Experience of Developing Countries (5) Emergence of the United States as a Super Power

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Causes of Globalisation

(1) Flow of Foreign Capital (2) Entry of Multinational Corporations (3) Increase in Efficiency (4) Increase in Knowledge 5) Availability of Modern Technology and Marketing

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Merits of Globalisation

Demerits of Globalisation

(1) Cut-throat Foreign Competition (2) Causes of Economic Inequality (3) Increase in Debt Burden (4) Adverse Effect on Balance of Payments (5) Increase in Consumerism

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The government of India, in 1991 sought financial assistance from the International Monetary Fund and World Bank.

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Globalisation of the Indian Economy