Introduction to Globalisation

Globalisation is a process that eliminates the barriers between diverse worlds and creates new
forms of interdependence on a world-wide scale. This process is a combination of economic,
technological, socio-cultural and political processes. Among these economic globalisation is
considered to be the dominant force. Economic globalisation is a process of increased
economic integration and inter-dependence of world economies that facilitates the free flow
of goods, capital, people and ideas beyond borders. It has both opportunities and risks
causing positive and negative implications. Inspired by neo-liberal ideologies, public policies,
including educational policies, made at supranational, national and sub-national level
institutions are very much influenced by economic globalisation, advocating reduced state
intervention, free market dynamics and increased entrepreneurialism. There are two explicit
positions to globalisation which is the supporting and opposing positions. And there are two
implicit positions such as the realistic approach and critical realistic approach to
globalisation, the researcher positions himself as a critical realistic. The implications of
globalisation are multi-fold and inter-related. They are both positive and negative. Defenders
of globalisation such as Bhagwati highlight the human face of globalisation, saying that it has
helped to reduce poverty, to protect women, children, and the environment. Critics of
globalisation including Guillen point out that it is not democratic, it creates poverty,
inequality, hurts developing countries and degrades environment. Realists such as Giddens
say that globalisation cannot be reverted and therefore it has to be integrated meaningfully.
Stiglitz, a critical realist points out that, for globalisation to be beneficial to all, more
democratic political processes are needed throughout the world. Economic globalisation (EG)
is defined as the process of increased economic integration and interdependence of world
economies, as a result of the growing scale of cross-border trade of commodities and
services, flow of international capital and spread of technologies in a wide and rapid manner.
History of Globalisation
The historical origins of globalization are the subject of on-going debate. Though
several scholars situate the origins of globalization in the modern era, others regard it as a
phenomenon with a long history. Some people have argued that stretching the beginning of
globalization far back in time renders the concept wholly inoperative and useless for political
analysis. Perhaps the most extreme proponent of a deep historical origin for globalization
was Andre Gunder Frank, an economist associated with dependency theory. Frank argued
that a form of globalization has been in existence since the rise of trade links
between Sumer and the Indus Valley Civilization in the third millennium B.C. Critics of this
idea contend that it rests upon an over-broad definition of globalization.
Thomas L. Friedman divides the history of globalization into three periods:
Globalization 1 (14921800),
Globalization 2 (18002000) and
Globalization 3 (2000present).

He states that Globalization 1 involved the globalization of countries, Globalization 2
involved the globalization of companies and Globalization 3 involves the globalization of
individuals.
Even as early as the Prehistoric period, the roots of modern globalization could be found.
Territorial expansion by our ancestors to all five continents was a critical component in
establishing globalization. The development of agriculture furthered globalization by
converting the vast majority of the world's population into a settled lifestyle. However,
globalization failed to accelerate due to lack of long distance interaction and technology. The
contemporary process of globalization likely occurred around the middle of the 19th century
as increased capital and labour mobility coupled with decreased transport costs led to a
smaller world.
An early form of globalized economics and culture, known as archaic globalization, existed
during the Hellenistic Age, when commercialized urban centres were focused around the axis
of Greek culture over a wide range that stretched from India to Spain. Trade was widespread
during that period, and it is the first time the idea of a cosmopolitan culture emerged. Others
have perceived an early form of globalization in the trade links between the Roman Empire,
the Parthian Empire, and the Han Dynasty. The increasing articulation of commercial links
between these powers inspired the development of the Silk Road, which started in western
China, reached the boundaries of the Parthian empire, and continued onwards towards Rome.
The Islamic Golden Age was also an important early stage of globalization,
when Jewish and Muslim traders and explorers established a sustained economy across
the Old World resulting in a globalization of crops, trade, knowledge and technology.
Globally significant crops such as sugar and cotton became widely cultivated across
the Muslim world in this period, while the necessity of learning Arabic and completing
the Hajj created a cosmopolitan culture.
The next phase is known as proto-globalization. It was characterized by the rise of maritime
European empires, in the 16th and 17th centuries, first the Portuguese and Spanish Empires,
and later the Dutch and British Empires. In the 17th century, globalization became also a
private business phenomenon when chartered companies like British East India Company
and Dutch East India Company were established. Shortly before the turn of the 16th century,
Portuguese started establishing factories from Africa to Asia and Brazil, to deal with the trade
of local products like gold, spices and timber, introducing an international business centre
under a royal monopoly, the House of India. Global integration continued with the European
colonization of the Americas initiating the Columbian Exchange, the enormous widespread
exchange of plants, animals, foods, human populations, communicable diseases and culture
between the Eastern and Western hemispheres. It was one of the most significant global
events concerning ecology, agriculture and culture in history. New crops that had come from
the Americas via the European seafarers in the 16th century significantly contributed to the
world's population growth.
The 19th century witnessed the advent of globalization approaching its modern
form. Industrialization allowed cheap production of household items using economies of
scale,

while rapid population growth created sustained demand for commodities.
Globalization in this period was decisively shaped by nineteenth-century imperialism. After
the first and second Opium Wars, which opened up China to foreign trade and the completion
of the British conquest of India, the vast populations of these regions became ready
consumers of European exports. It was in this period that areas of sub-Saharan Africa and the
Pacific islands were incorporated into the world system. Meanwhile, the conquest of new
parts of the globe, notably sub-Saharan Africa, by Europeans yielded valuable natural
resources such as rubber, diamonds and coal and helped fuel trade and investment between
the European imperial powers, their colonies, and the United States. The inhabitant of
London could order by telephone, sipping his morning tea, the various products of the whole
earth, and reasonably expect their early delivery upon his doorstep. Between the globalization
in the 19th and in the 20th there are significant differences. There are two main points on
which the differences can be seen. One point is the global trade in this century as well as the
capital, investment and the economy.
The global trade in the 20th shows a higher share of trade in merchant production, a growth
of the trade in services and the rise of production and trade by multinational firms. The
production of merchant goods in the 20th century largely decreased from the levels seen in
the 19th. However, the amount of merchant goods that were produced for the merchandise
trade grew. The trade in services also grew more important in the 20th compared to the 19th
century. The last point that distinguishes the global trade in the 19th century compared to the
global trade in the 20th century is the extent of multinational cooperation. Before the 20th
century began, there were just Portfolio investment, but no trade-related or production-
relation Direct investment.
Commercial integration has improved since last century, barriers that inhibit trade are lower
and transport costs have decreased. Multinational trade contracts and agreements have been
signed, like the General Agreement on Tariffs and Trade (GATT), North American Free
Trade Agreement (NAFTA), the European Union (EU) has been hugely involved in
eliminating tariffs between member states, and the World Trade Organization. From 1890
and up to WWI instability in trade was a problem, but in the post war period there has mostly
been economic expansion which leads to stability. Nations have to take care of their own
products; they have to make sure that foreign goods do not suffocate their domestic products
causing unemployment and maybe social instability. Technological changes have caused
lower transporting costs; it takes just a few hours to transport goods between continents to-
day, instead of weeks or even months in the nineteenth century. By considering financial
crisis one key difference is the monetary regime. In the 19th century it occurred under the
fixed exchange rates of the gold standard. But in the 20th century it took place in a regime of
managed flexibility. Furthermore in the 19th century countries had developed effective
lenders of last resort, but the same was not true at the periphery and countries there suffered
the consequences. A century later there was a domestic safety net in most emerging countries
so that banking panics were changed into situations where the debts of an insolvent banking
system were taken over by the government. The recovery from banking crisis is another key
difference. It has tended to begin earlier in the recent period than in the typical crisis episode
a hundred years ago. In the 19th century there were no international rescue packages
available to emerging economies. But in the recent period such rescues were a typical
component of the financial landscape all over the world.
The information asymmetry played a very important role in international investments. The
railway bonds serve as a great example. There were many other contracting problems. It was
very difficult for companies working overseas to manage their operations in other parts of the
world, so this was clearly a big barrier to investment. Several macroeconomic factors such as
exchange risks and uncertain monetary policies were a big barrier for international
investments as well. The accounting standards in the U.S. were relatively underdeveloped in
the 19th century. The British investors played a very important role in transferring their
accounting practices to the new emerging markets.
After World War II, globalisation is partly the result of planning by politicians to break down
borders hampering trade. Their work led to the Bretton Woods conference, an agreement by
the world's leading politicians to lay down the framework for international commerce and
finance, and the founding of several international institutions intended to oversee the
processes of globalization. Globalization was also driven by the global expansion
of multinational corporations based in the United States and Europe, and worldwide
exchange of new developments in science, technology and products, with most
significant inventions of this time having their origins in the Western world according to
Encyclopaedia and Britannica. Worldwide export of western culture went through the
new mass media like film, radio, television and recorded music. The growth of
international transport and telecommunication played a decisive role in modern globalization.
These institutions include the International Bank for Reconstruction and Development
(the World Bank), and the International Monetary Fund (IMF). Globalization has been
facilitated by advances in technology which have reduced the costs of trade, and trade
negotiation rounds, originally under the auspices of the General Agreement on Tariffs and
Trade (GATT), which led to a series of agreements to remove restrictions on free trade.
Since World War II, barriers to international trade have been considerably lowered through
international GATT agreements. Particular initiatives carried out as a result of GATT and
the World Trade Organization (WTO), for which GATT is the foundation, includes:
Promotion of free trade:
1. Elimination of tariffs. i.e. creation of free trade zones with small or no tariffs
2. Reduced transportation costs, especially resulting from development
of containerization for ocean shipping.
3. Reduction or elimination of capital controls
4. Reduction, elimination, or harmonization of subsidies for local businesses
5. Creation of subsidies for global corporations
6. Harmonization of intellectual property laws across the majority of states, with more
restrictions
7. Supranational recognition of intellectual property restrictions. For e.g. patents granted
by China would be recognized in the United States
Cultural globalization, driven by communication technology and the worldwide marketing of
Western cultural industries, was understood at first as a process of homogenization, as the
global domination of American culture at the expense of traditional diversity. However, a
contrasting trend soon became evident in the emergence of movements protesting against
globalization and giving new momentum to the defence of local uniqueness, individuality,
and identity.
The Uruguay Round led to a treaty to create the WTO to mediate trade disputes and set up a
uniform platform of trading. Other bilateral and multilateral trade agreements, including
sections of Europe's Maastricht Treaty and the North American Free Trade
Agreement (NAFTA) have also been signed in pursuit of the goal of reducing tariffs and
barriers to trade. World exports rose from 8.5% in 1970, to 16.2% of total gross world
product in 2001. In the 1990s, the growth of low cost communication networks allowed work
done using a computer to be moved to low wage locations for many job types. This included
accounting, software development, and engineering design. In late 2000s, much of
the industrialized world entered into a deep recession. Some analysts say the world is going
through a period of de-globalization after years of increasing economic integration. China has
recently become the world's largest exporter surpassing Germany.
Globalisation in India
India had the distinction of being the world's largest economy in the beginning of the
Christian era, as it accounted for about 32.9% share of world GDP and about 17%. The goods
produced in India had long been exported to far off destinations across the world. Therefore,
the concept of globalisation is hardly new to India. India currently accounts for 2.07% of
World trade as of 2013 according to the World Trade Organisation (WTO). Until the
liberalisation of 1991, India was largely and intentionally isolated from the world markets, to
protect its fledgling economy and to achieve self-reliance. Foreign trade was subject to
import tariffs, export taxes and quantitative restrictions, while foreign direct investment was
restricted by upper-limit equity participation, restrictions on technology transfer, export
obligations and government approvals. These approvals were needed for nearly 60% of new
FDI in the industrial sector. The restrictions ensured that FDI averaged only around $200
million annually between 1985 and 1991. A large percentage of the capital flows consisted of
foreign aid, commercial borrowing and deposits of non-resident Indians.
India's exports were stagnant for the first 15 years after independence, due to the
predominance of tea, jute and cotton manufactures, demand for which was
generally inelastic. Imports in the same period consisted predominantly of machinery,
equipment and raw materials, due to nascent industrialisation. Since liberalisation, the value
of India's international trade has become more broad-based and has risen to 630801 billion
in 201213 from 12.50 billion in 195051. India's major trading partners are China, United
States, United Arab Emirates, United Kingdom, Japan and European Union. The exports
during April 2013 were $142 billion dollars and imports were $235 billion. India being a
founding-member of General Agreement on Tariffs and Trade (GATT) since 1947 and its
successor, the World Trade Organisation. While participating actively in its general council
meetings, India has been crucial in voicing the concerns of the developing world. For
instance, India has continued its opposition to the inclusion of such matters as labour and
environment issues and other non-tariff barriers into the WTO policies.
Despite reducing import restrictions several times in the 2000s, India was evaluated by the
World Trade Organisation in 2008 as more restrictive than similar developing economies,
such as Brazil, China, and Russia. The WTO also identified electricity shortages and
inadequate transportation infrastructure as significant constraints on trade. Its restrictiveness
has been cited as a factor which has isolated it from the global financial crisis of 2008
2009 more than other countries.
Foreign direct investment in India has reached 2% of GDP, compared with 0.1% in 1990, and
Indian investment in other countries rose sharply from 2006. As the third-largest economy in
the world in PPP terms, India is a preferred destination for foreign direct investments. India
has strengths in information technology and other significant areas such as auto components,
chemicals, apparels, pharmaceuticals, and jewellery. Despite a surge in foreign investments,
rigid FDI policies resulted in a significant hindrance. However, due to some positive
economic reforms aimed at deregulating the economy and stimulating foreign investment,
India has positioned itself as one of the front-runners of the rapidly growing Asia Pacific
Region. India has a large pool of skilled managerial and technical expertise. The size of the
middle-class population stands at 50 million and represents a growing consumer market.
India's liberalised FDI policy as of 2005 allowed up to a 100% FDI stake in ventures.
Industrial policy reforms have substantially reduced industrial licensing requirements,
removed restrictions on expansion and facilitated easy access to foreign technology and
foreign direct investment FDI. The upward moving growth curve of the real-estate sector
owes some credit to a booming economy and liberalised FDI regime. In March 2005, the
government amended the rules to allow 100 per cent FDI in the construction business. This
automatic route has been permitted in townships, housing, built-up infrastructure and
construction development projects including housing, commercial premises, hotels, resorts,
hospitals, educational institutions, recreational facilities, and city- and regional-level
infrastructure. A number of changes were approved on the FDI policy to remove the caps in
most sectors. Fields which require relaxation in FDI restrictions include civil aviation,
construction development, industrial parks, petroleum and natural gas, commodity
exchanges, credit-information services and mining. But this still leaves an unfinished agenda
of permitting greater foreign investment in politically sensitive areas such as insurance and
retailing. FDI inflows into India reached a record US$19.5billion in fiscal year 2006-07,
according to the government's Secretariat for Industrial Assistance. This was more than
double the total of US$7.8bn in the previous fiscal year. The FDI inflow for 2012-13 has
been reported as $28billion and for 2013-14, it is expected to be above $35 billion. A critical
factor in determining India's continued economic growth and realising the potential to be an
economic superpower is going to depend on how the government can create incentives for
FDI flow across a large number of sectors in India. In September 2012 the government
approved 51% FDI in multi-brand retails despite a lot of pressure from coalition parties.


Impact of Globalisation on Tamil Nadu
In mid-1991, faced with problems of low economic growth, a heavy external debt burden and
a balance of payment crisis, the Government of India took recourse to a Structural
Adjustment Programme, devised by IMF / World Bank. The New Economic policy was duly
taken up by the States of India. Tamil Nadu has been a frontline State lined up for the
onslaught of the new trend. Out of a total of 3281 100% export-oriented units in the country,
as many as 2228 or 68% were located in the 5 reform-oriented States. The Southern States
accounted for more than 34% of the investment proposals approved in 1998. Among the
reform-oriented States, Andhra Pradesh and Tamil Nadu are said to have implemented
reforms on a wider scale than the others in the category. In software exports, Tamil Nadu is
in the lead. While Bangalore and Mumbai were traditionally the choice locations of software
companies, the last few years have seen the emergence of Chennai as a prominent software
centre where both Indian companies and multinationals have located their operations. In
addition, several foreign companies have located their back office operations in Chennai.
Abundant supply of labour, low wages, cheap satellite communication and the Internet has
been instrumental in the decision of foreign firms to establish their back office operations in
India.

1. Foreign Investment and Tamil Nadu

Over the last two decades, the Government of Tamilnadu has followed a very liberal and pro-
big industry policy and hence the State is rapidly attracting large numbers of foreign and
domestic firms. The State has moved to third place in its bid to attract foreign investment.
Between August 1991 and January 1997, FDI approvals in Tamilnadu involved Rs 54.7
billion in 812 projects. The State government has given the single-window clearance system
additional powers by empowering the chief executives of the various industrial complexes,
growth centres and industrial estates in the public and private sectors to grant all clearances
from various government departments. Additionally, by The Industrial Township Area
Development Authority Act of 1997, the government has granted powers of single-window
clearance to an authority in case of every industrial township and industrial park.
Furthermore, to speed up the process of setting up private industries, the government has
permitted them to go ahead with construction of factories without waiting for the plan
approval from the local body. Acquisition of private land for major industrial projects was
fraught with delays before The Acquisition of Land for Industrial Purposes Act of 1997 was
passed by the State legislature. As expected, this has resulted in speedy land acquisition for
large projects. These measures have made Tamil Nadu more investor-friendly and an
attractive destination for FDI and domestic private investment. Tamil Nadu Government has
multiplied efforts to attract foreign investment into the local IT industry. In 1998, the State
announced a far-reaching, industry-friendly IT policy and set up a State-level IT task Force to
implement it. All these efforts have paid off: Software exports have zoomed from nowhere to
over $300 million in 1998. The State targeted for IT hardware alone for the year 2002 is set at
$1.25 billion. If this target is reached, the regions contribution will represent about 30% of
the entire Indian hardware production. A NASSCOM Report rates Chennai as the most
favoured destination for IT companies in India. Tamil Nadu has attracted several automobile
manufacturers such as Ford, Mitsubishi and Hyundai. Near Chennai, an auto-ancillary park is
coming up that will help enhance the availability of world-class auto components to
multinational manufacturers in Tamil Nadu and neighbouring States. At the end of April
2013, as per CMIE estimates, total investments committed in major industrial projects in
Tamil Nadu were US $1876.1 million.

Independent Power projects (IPPs) for infrastructure have been licensed in a big way by the
State Govt. As per the Planning Commission estimates, private investment of more than Rs
62,000 crores is proposed in Tamilnadu for undertaking these IPPs. Hospitality giants like
Hilton, Marriet and Holiday Inn are starting 5 star hotels at Chennai and major cities.
Privatisation and foreign investment in the development of major and minor ports in Chennai,
Ennore, Cuddalore, Cheyyur, Colachel and other places have been taken up in a big way.
2000 acres have been acquired at Nanguneri in Tirunelveli district to set up the 700-crores
Special Economic Zone (SEZ), meant to specialize in IT, electronics and Pharma companies
and products. Sterlite Industries Ltd has been coming increasingly under pressure from the
courts and environment groups for causing environmental degradation. The Dupont
Corporation of USA is a similar offender as it uses technology, which is not only outdated in
its parent country, but also environmentally unsafe.

2. Globalisation and Social Development

There have been no serious efforts on the Governments side to constantly monitor and assess
the impact of globalisation in Tamilnadu towards the Social development concerns and the
interests of the weaker sections of Tamilnadu. A study conducted by the Tamilnadu womens
collective in Madurai, Dindigul and Ramanathapuram districts showed that an estimated
5,000 acres of land had been sold by individuals to business houses. Coastal studies have
shown very accurately as to how the arrival of big companies have led to serious destruction
of livelihoods of fishing communities and to environmental degradation. But its more than
clear that the process of economic reforms has widened the social and economic inequalities
in the country. Tamilnadu is no exception. With its already warped economic development
pattern which stresses more on service sector at the expense of others emphasis on big
industry, IT industry and export-oriented stress has surely led to a greater inequalities and
greater impoverisation among vast sections of Tamil society.
The worst result has been in the field of employment generation. Tamilnadu has had no
systematic programme to make employment generation as a priority of economic
development. Added to that, now the extra stress on capital intensive and labour-reducing
industries, the employment scene in the State is becoming a serious concern. The
governments promise of providing a job per household due to acquisition of about 6,000
acres in and around Sriperumpudur, to accommodate multinational companies, was not
followed through. The rider to this commitment was that employment would be given,
provided the person concerned had the right professional and educational qualification. It was
not possible for villagers to have the correct credentials to take up work with multinationals
operating in the area.

3. Globalisation and Dalit

The Worst affected are the Dalit and tribal of the State. The already existing heavy burden of
unemployment and underemployment among vast sections of these people has been made
worse by the new policies. The members of the group were of the unanimous view that the
recent phenomenon of globalisation, liberalisation and the dis-investment policies announced
by the Government in the name of privatisation has imparted a severe blow to the
employment opportunities of the members of SC and ST. Statistics prove that there would be
considerable reduction in the employment opportunities in general and very steep decrease of
jobs to be filled for the reserved category in particular.

4. Globalisation and Women

Successive Human Development Reports of UNDP have referred to the growing
feminization of poverty. Though globalisation increases employment for women, it
concentrates them in low status, low paying jobs, thus increasing their poverty. And within a
poor household, women members are usually worse off than male members, because of
gender based differences in food consumption and other entitlements like health care,
education etc. There is hardly any data in Tamilnadu and India explaining how globalisation
affects womens employment in rural and urban areas or in formal and informal sectors.
Globalisation often results in a process of feminization of labour and among women, greater
marginalisation of older and poorer, unskilled women. Export processing zones, free trade
zones and factories employ young girls in a big way, since it is cheaper and flexible. Women
are also willing to work as casual, subcontracted, temporary or home-based workers. In a
situation of labour laws being waved and any extra welfare benefits denied, globalisation also
results in women being displaced by women of a younger age group, usually unmarried.
For example, studies among fisher-women engaged in marketing fish have shown how with
the arrival of mechanized trawlers, results in the disappearing of traditional marketing
operations, while giving rise to a fish processing industry, open young women workers, who
are usually not wives and daughters of traditional fishermen. But in the long run, the general
tendency of globalisation towards casualization of labour, under the pretext of making it more
flexible, has its most damaging effects on women in general. The worst victims of
globalisation are women in the Third world. In terms of food and health insecurity, the
women of the South pay the highest price. Whenever new technologies are introduced they
lose out in knowledge, skills and livelihoods. Globalisation is a gendered process which is re-
structuring social relations on a large scale. It intensifies womens work, yet dis-empowers
them by segmenting them to casual, low paid, unskilled and non-unionised work.

5. Globalisation and weaker sections

The points raised above in terms of dalits, tribals and women, hold good equally to other
vulnerable sections like unorganized labour, coastal communities and children. We need to
concretely and continuously monitor the effect of globalising process in Tamilnadu on these
sections. Large scale closing down of small scale industries all over Tamilnadu, superceded
by big companies and multinationals are playing havoc in the lives of labour, organized and
unorganized. With no safety network to protect them, labourers are being thrown to the
streets literally, as evidenced by constant reports in daily newspapers.
The coastal communities of Tamilnadu have been, as it were, under a siege, over the last
decade. Shrimp farms, mega ports, theme parks, petro-chemical industries, East Coast Road,
big trawlers etc. All of these and more have made the very survival of traditional coastal
communities a question mark. While theoretical debates regarding positive versus negative
effects of globalisation, social development of the weaker sections of Tamilnadu women,
dalits, tribals, children, fisherfolk and labour has taken a back seat, except for big promises
and palliative measures. On the future of these sections of Tamilnadu lies the real social
development of Tamilnadu. And public policy needs to be redrawn keeping the interests of
these sections at the center.































Conclusion

Over the last decade, the Tamilnadu Government has followed a very liberal and pro-big
industry policy and hence the State is rapidly attracting large numbers of foreign and
domestic firms. Education is undergoing constant changes under the effects of globalisation.
The effects of globalisation on education bring rapid developments in technology and
communications are foreseeing changes within learning systems across the world as ideas,
values and knowledge, changing the roles of students and teachers, and producing a shift in
society from industrialisation towards an information-based society. It reflects the effect on
culture and brings about a new form of cultural imperialism. The rise of new cultural
imperialism is shaping children, the future citizens of the state into global citizens, intelligent
people with a broad range of skills and knowledge to apply to competitive, information based
society. Globalisation and technological advancements are delivering and increasing access
to the world and subsequently subjects should reflect this global outlook. Just because of
technology and communication seems to be creating in human life between the haves and
the have nots, resulting in a bifurcated society of those who can afford such information
technology and those who cant, so too does globalization. While the state encourages its
citizens to seek more education, severe limitations in delivering basic services are a problem.
A lack of infrastructure and funding makes it difficult to implement any technological and
communication advancements. However, despite differences in economy, political, culture
and society, there seems to be a definite nexus between privatisation, export oriented
development, decline in employment opportunities and environmental degradation and the
worst result of globalisation has been in the field of Employment generation. It also adds up
to a greater extent of cultural degradation, increases the disparities among the rich and poor,
exploits labour etc. Globalisation should first focus on fair trade rather than free trade as it
exploits the ignorance of the third world. It is the responsibility of the government to allow
liberalisation in such a way that it does not affect the survival of the weaker sections. It
should not curb the growth of the local market. Globalisation is profitable but only to an
extent until it caters a collective growth of the people.