Page 190 - DECO303_INDIAN_ECONOMY_ENGLISH

Unit 11: Globalisation and Its Impact on India

The remaining can be imported at much economical prices internationally, rather than Notes
manufacturing it locally

Did u know? The number of rural landless families increased from 35 per cent in 1987 to 45
per cent in 1999, further to 55 per cent in 2005. The farmers are destined to die of starvation
or suicide. Replying to the Short Duration Discussion on Import of Wheat and Agrarian
Distress on May 18, 2006, Agriculture Minister Sharad Pawar informed the Rajya Sabha
that roughly 1,00,000 farmers committed suicide during the period 1993-2003 mainly due
to indebtedness.
11.1.1 Characteristics of Globalisation

You must take into consideration the following characteristics of globalisation:
1. Over the past two decades, there is a quick globalisation of markets and production.
2. The globalisation of markets infers that national markets are combining into one huge
marketplace.
3. Erosion of national sovereignty and national borders via international agreements resulting
in organisations such as the World Trade Organisation (WTO) and European Union (EU).
4. Development of Global Financial System.
5. Decreased transportation costs, particularly from development of containerisation for
ocean shipping.
6. The globalisation of production implies that firms are resorting to focused world locations
for specific activities than including their own resources. As a result, it looks progressively
irrelevant to talk about American products, Japanese products, or German products, as
these are being replaced by “global” products.
7. Two factors appear to underlie the trend toward globalisation: decreasing trade barriers
and changes in communication, information, as well as transportation technologies.
8. Since the end of World War II, there has been an important lowering of barriers to the free
flow of goods, services, and capital.
9. Rise in international flow of capital.
10. Rise in the share of the world economy regulated by multinational corporations.
11. Enhanced role of international organisations like WTO, WIPO and IMF that deal with
international transactions.
12. Rise of economic practices such as outsourcing by multinational corporations.
13. Intellectual Property Restrictions.

14. Harmonisation of intellectual property laws across nations (usually speaking, with more
restrictions).
15. Supranational recognition of intellectual property restrictions (for example, patents granted
by China would be identified in the US).
16. Pursuing globalisation of production and markets, world trade has grown quicker than
world output in the past decade. Foreign direct investment has swelled, imports have
penetrated more intensely into the world’s industrial nations, and competitive pressures
have enhanced.

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