Impact of globalisation

Globalization ( Globalisation ) refers to the increasingly global relationships of culture , people and economic activity . Most often , it refers to economise the global distribution and produ ction of goods and services , through reduction of barriers to international trade such as tariffs , export fees , and import quotas . Globalization accompa nied and allegedly contributed to economic growth in developed and developing countries through increased specialization and the principle of adva ntage . The term can also refer to the transnational circulation of ideas , languages , and popular culture . 

Globalisation is the new buzzword that has come to dominate the world since the nineties of the last century with the end of the cold war and the break - up of the former Soviet Union . The frontiers of the state with increased reliance on the market economy and renewed faith in the private capital and resources , a process of structu ral adjustment spurred by the studies and influences of the World Bank and other Internatio nal organisations have started in many of the deve loping countries . Also Globalisation has brought in new opportunities to developing countries . 

Greater access to developed country markets and technology transfer hold out promise of improved productivity and higher living standard . But globalisation has also thrown up new challenges like growing inequality across and within nations , volatility in financial market and environmental deteriorations . Another negative aspect of globalisation is that a great majority of developing countries remain removed from the process . Till the ninenties the process of globalisation of the Indian economy was constrained by the barriers to trade and investment liberalisation of trade , investment and financial flows initiated in the ninenties has progressively lowered the barriers to competition and hastened the pace of globalisation 

 India opened up the economy in the early ninenties following a major crisis led by a foreign exchange crunch that dragged the economy close to defaulting on loans . The response was a slew of Domestic and external sector policy measures partly prompted by the immediate needs and partly by the demand of the multilateral organisations . The new policy regime radically pushed forward in favour of a more open and market oriented economy 

Majormeasures initiated as a part of the liberalisation and globalisation strategy in the early ninenties included scrapping of the industrial licensing regime , reduction in the number of areas reserved for the public sector , amendment of the monopolies and the restrictive trade practices act , start of the privatisation programme , reduction in tariff rates and change over to market determined exchange rates .  

 Over the years there has been a steady liberalisation of the current account transactions , more and more sectors opened up for foreign direct investments and portfolio investments facilitating entry of foreign investors in telecom , roads , ports , airports , insurance and other major sectors . Globalisation has intensified interdepen dence and competition between economies in the world market .