Globalization and its key elements

There are many definitions of Globalization but most acknowledged one is the greater
movement of people, goods, capital and ideas due to economic integration which in turn is
propelled by increased trade and investment.

So, Globalization means a “Borderless Economy”.

Globalization provides opportunity and challenges.

There has always been a sharing of goods, services, knowledge and culture between people
and countries, but in recent years, improved technology and a reduction of barriers
increasing the speed of exchange is much faster.

Globalization thus means integration of domestic economy with world economy. Each
country makes decision and policies that position them to maximize the benefits and
minimize the challenges by Globalization.

The Human Development Report 1999, mentions the following as the new features of the
current phase of Globalization:

1. New Markets
1. Growing Global markets in services: Like Banking, insurance and Transport.
2. New Financial Markets: Deregulated globally linked, working around the clock
with new instruments such as derivatives.
3. Deregulation of antitrust laws and proliferation of mergers and actuations
4. Global consumer markets with Global bond.

2. New Actions
1. Multinational companies’ integration their production and manufacturing
determining food production
2. The World Trade Organization , the first multinational Organization with
authority to enforce Government compliance with rules.
3. An international criminal court system with international rule making
4. A borrowing international network of NGO’s
5. More policy coordination groups like G-22, G-7, G-40.

3. New Rules and Norms

1. Consumer goals and actions agenda for development
2. Widespread adoption of democracy as the choice of political regime

4. New and Improved Tools of Communication

1. Electronic communication and Internet linking many people
2. Cellular Phones
3. Fax
4. Faster and cheaper means of transport by rail, road etc
Some of the current facts about India and Globalization are as follows:
1. Global income is more than $31 trillion a year but 1.2 billion people of
world’s population is earning less than $1 a day.
2. 80 % of the global population earns 20 % of global income and within
many countries there is large gap between rich and poor.
3. Two Billion people living in countries in sub Saharan Africa, the Middle
East and the former Soviet Union have been unable to increase their
integration in world economy and their economies have contracted,
poverty has risen and education level has less risen, less rapidly than
globalized countries.

To conclude,
1. Globalized countries grows much faster
2. It increases the standard of living as there is better exchange of goods and services.
3. It eliminates poverty
4. Increases Foreign Direct Investment
5. It encourages better health and sanitiation facilities
6. It has positive environmental outcomes i.e. less polluting techniques are used.
7. It has imported technology so has reduced cost
8. Growth in liberal economies
9. Respect for cultural identities.

RASHIL SHAH

Email: rashiluk@gmail.com / rashilshah21@gmail.com

Linkedin id: www.linkedin.com/in/rashil-shah-17057131