Globalization

GLOBALIZATION: BOON OR BANE

INTRODUCTION

Globalisation can be defined as the growing economic interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows through the rapid and widespread diffusion of technology. The fact that is important in today’s globalisation that really matters is that the accelerating speed is very fast. In the past it takes years or decades for influence to be passed for such an impact to be made. But today the influences or transmission of culture values, language, economy and administration can take place within months. This is the major difference. So globalisation is the transmission or extension of values, goods, services, thought or culture across border and it occurs with accelerated rate. The drivers for this accelerated speed are the technology and economic liberalism and the free movement of people. The nature of capitalism was such that entrepreneurial talent would not be constrained by geographical and legal boundaries.

The growth of a dynamic trade system and the consequent development of classical payment arrangements like the gold standard have been seen by political economists as early yet decisive pointers towards the globalisation of the world economy. At the centre of this process is the idea of the Market and in particular the market for finance, capital, allied with the Multinational Corporation (MNC) is seen as a major agent and channel for the globalisation of production. In the post-modern world system the essential link has been provided by the development of communication to a point where major actors in the economic system are thinking and acting upon global assumptions.[1]

The phenomenon of globalisation has revolutionised the world and has brought about various changes in the global environment. These changes range from speedier economic transactions to providing...