Page 191 - DECO303_INDIAN_ECONOMY_ENGLISH

Indian Economy

Notes 17. The development of the microprocessor and associated developments in communication
and information processing technology have assisted firms to link their global operations
into sophisticated information networks.
18. Development of a global telecommunications infrastructure and higher trans-border data
flow utilising technologies like Internet communication satellites and telephones.
19. Increases in the number of standards applied worldwide, for example, copyright laws and
patents.
20. The most theatrical environmental trend has been the downfall of communist power in
Eastern Europe, which has developed enormous long-run opportunities for international
businesses.
21. Additionally, the move towards free market economies in China, Latin America and India
is developing opportunities (and threats) for Western international businesses.
22. The advantages and costs of the evolving global economy are being hotly debated among
business people, economists, and politicians. The debate emphasises on the impact of
globalisation on jobs, working conditions, wages, the environment, and national
sovereignty.

23. Few argue that even terrorism has accepted globalisation with attacks in foreign countries
that have no direct association with another.
24. Culturally
(a) Higher international cultural exchange.

(b) Expanding of multiculturalism and better individual access to cultural diversity.
(c) The imported culture can simply supplant the local culture, leading to reduction in
diversity via hybridisation or even assimilation.
(d) The most noticeable form of this is Westernisation.

(e) Higher international travel and tourism.
(f) Higher immigration involving illegal immigration.
25. Managing an international business is separate from managing a domestic business for
minimum four reasons:
(a) Countries are diverse.

(b) The range of problems faced by a manager in an international business is broader
and the issues themselves more complicated than those confronted by a manager in
a domestic business.

(c) Managers in an international business must discover ways to work within the limits
levied by governments’ intervention in the international trade as well as investment
system.
(d) International transactions include transforming money into different currencies.

Notes According to a survey, the proportion of people depending in India on agriculture
is about 60 % whereas the same for the UK is 2 %, USA 2 % and Japan 3 % (2005 data). The
developed countries, having a low proportion of population in agriculture, have readily
adopted globalisation which favours more the growth of the manufacturing and service
sectors.

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