1. Globalization

2. Introduction:
Globalization” refers to the growing interdependence of countries resulting from the increasing integration of trade, finance, people, and ideas in one global marketplace. International trade and cross-border investment flows are the main elements of this integration.
Increasing liberalization of trade and capital markets; more and more governments are refusing to protect their economies from foreign competition or influence through import tariffs and nontariff barriers such as import quotas, export restraints, and legal prohibitions.

3. Empirical evidence suggests that globalization has significantly boosted economic growth in East Asian economies such as Hong Kong (China), the Republic of Korea, and Singapore. But not all developing countries are equally engaged in globalization or in a position to benefit from it.

4. Globalization of World Economy
Globalization is the process of development of the world into a single integrated economic unit.
Transnational Economy is a borderless world economy characterized by free flow of trade and factors of production across national borders
International Economy is characterized by existence of different national economies and economic relations between them being regulated by national governments.

6. Factors Influencing globalization
Communications:
Cable TV, personal computers, telephony and the Internet have created a global village, tying the world closer together.
Businesses in the western world can have a call centre in India answering calls from western customers.
Transportation
Has become cheap and quick.
People, especially in the western civilization, travel all over the world
People from other countries can travel to the west to seek better-paid jobs.
Businesses can more easily ship products and raw materials all over the world - making products and services from all over the globe available to customers.
Trade liberalisation:
Governments around the world have relaxed laws restricting trade and foreign investment
Countries in the developing world have opened up their countries to western businesses and investment
Some governments offer grants and tax incentives to persuade foreign companies to invest in their country.
The idea is that there should be no restrictions on trade between countries is known as free trade or free market capitalism.
Free trade involves a minimum of government intervention to regulate trade such as taxes on imported goods and services, quotas on imported goods and services, and subsidies

7. Impact of Globalisation
Creation of new employment opportunities
Higher wages for poor as demand for labour intensive products rise.
Cheaper imports of food and essential consumer goods
Lowering of domestic costs and prices due to competition
Increase in government revenue needed to provide poor with basic human services
Resource allocation efficiencies and higher productivity

8. The size and structure of multinationals

9. The Impacts of Foreign Direct Investment on Host Countries
Positive Impact
capital information
technology and management skills transfer
regional and sectoral development
internal competition and entrepreneurship
favorable effect on balance of payments
increased employment
Negative Impact
industrial dominance
technological dependence
disturbance of economic plans
cultural change
interference by home government of multinational corporation

10. India’s Trade

11. Drivers of Globalization
International trade (lower trade barriers and more competition)
Financial flows (FDI, technology transfers /licensing)
Communications (traditional media and the internet)
Technological advances in transportation , electronics and related fields.
Population mobility specially of labour