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Project on

Globalization:-Nature and Scope

Submitted to:
Dr. B.K. Mahakul
Faculty Political Science

Submitted by:
Avinash Kumar Masram
Semester V (political science major)
Roll no. - 39

TABLE OF CONTENTS
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Acknowledgement.3
Objective4
Introduction ..5
Globalization its Nature ..6
Effects of Globalisation....7
Conclusion ...11
Bibliography 12
Webliography12

Acknowledgements
I feel myself highly elated, as it gives me tremendous pleasure to come out with this dynamic topic, "
Globalization: - nature and scope. Words fail to express the deep sense of glee to Dr. B.K Mahakul
Faculty of Political Science, H.N.L.U Raipur. The dialectics and dynamics of this topic provoked me to
come out with project. I would like to thank him for guiding me in doing all sorts of researches , giving
me suggestions and having discussions regarding the project topic by devoting her precious time .I thank
all those who have helped me in the completion of this project from the bottom of my heart . I would
also like to extend my heartfelt thanks to the library staff that have been relentless in their help and
support in providing any material whenever required.
Thanking you.
Avinash Masram
Roll .No 39

Objective

To study process of globalization


To study its nature and effects

INTRODUCTION
Globalization is the process of international integration arising from the interchange of views, ideas,
product and other aspect of culture. Advances in transportation and telecommunications infrastructure,
including the rise of the telegraph and its posterity the Internet, are major factors in globalization,
generating further interdependence of economic and cultural activities.
Though scholars place the origins of globalization in modern times, others trace its history long before
the European age of discovery and voyages to the New World. Some even trace the origins to the third
millennium BCE. In the late 19th century and early 20th century, the connectedness of the world's
economies and cultures grew very quickly.
There are heated debates about globalization and its positive and negative effects. While globalization is
thought of by many as having the potential to make societies richer through trade and to bring knowledge
and information to people around the world, there are many others who perceive globalization as
contributing to the exploitation of the poor by the rich, and as a threat to traditional cultures as the
process of modernization changes societies. There are some who link the negative aspects of
globalization to terrorism. To put a complicated discussion in simple terms, they argue that exploitative
or declining conditions contribute to the lure of informal "extremist" networks that commit criminal or
terrorist acts internationally. And thanks to today's technology and integrated societies, these networks
span throughout the world. It is in this sense that terrorism, too, is "globalized."

Globalization: - Its Nature


The main strands for the nature of globalization are:1)
2)
3)
4)
5)

Increasing and deepening interconnectedness of societies in different parts of the world


Almost unimpeded flows of financial capital, news and cultural images across the world
Rising activity and power of multinational companies (MNCs)
Rising economic growth accompanied by rising inequalities in many countries
A global consumer cultura in the making More travel and migration by more people from more
countries to more countries; faster methods of transport and electronic communication so that

time and space is increasingly being


6) Greater awareness by the public of what is happening in the world and of the possible
implications for their own country.
7) The rapid growth of government and non-government supranational organizations that
supplement, supplant and support the activities of the nation-state.
This mindset led to the creation of world trade governing bodies, such as the World Trade Organisation
and the Organization for Economic Co-operation and Development and The European Union. These
organizations set out to liberalize trade through the removal of import/export tariffs and protectionism by
governments. The rapid increase in the rate of globalization has been facilitated by the introduction of
technology which has allowed fast communication and transport between geographically distant places.
The admission of China into the world trade market has increased supply and demand for finished
products which is further boosting industry around the world.

EFFECTS OF GLOBALISATION
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Globalization seems to be looked on as an unmitigated good by economists. Unfortunately, economists


seem to be guided by their badly flawed models; they miss real-world problems. In particular, they miss
the point that the world is finite. We dont have infinite resources, or unlimited ability to handle excess
pollution. So we are setting up a solution that is at best temporary.
Positive Effects of Globalization
Globalization has become one of the most debated subjects of recent times. It has been hailed as one of
the best things to happen to the world by its proponents, while opponents have labeled it as neoimperialism. Despite its challenges, the positive role it has played in changing the lives of millions of
people around the world is commendable. In the following passages, we will try to gain an insight into
the positive effects of globalization.
1) Increased Competition
one of the most visible effects is the improved quality of products due to global competition. Customer
service and the 'customer is the king' approach to production have led to improved quality of products
and services. As domestic companies have to fight out foreign competition, they are compelled to raise
their standards and customer satisfaction levels in order to survive in the market. Besides, when a global
brand enters a new country, it comes in riding on some goodwill, which it has to live up to. This creates
competition in the market and a 'survival of the fittest' situation.
2) Employment
With globalization, companies have forayed into the developing countries and hence generated
employment for them. But it can turn out to be either good or bad, depending on the point of view you
wish to see it from. It has given an opportunity to invest in the emerging markets and tap the talent which
is available there. In developing countries, there is often a lack of capital which hinders the growth of
domestic companies and hence, employment. In such cases, due to global nature of the businesses,
people of developing countries too can obtain gainful employment opportunities. But the developed
countries have lost jobs on account of this shift of jobs to the developing world and hence it is a pinch
felt by people in the First World.
3) Investment and Capital Flows
A lot of companies have directly invested in developing countries like Brazil and India by starting
production units, but what we also need to see is the amount of Foreign Direct Investment (FDI) that
flows into the developing countries. Companies which perform well attract a lot of foreign investment
and thus push up the reserve of foreign exchange.

4) Foreign Trade
while discussing the effects of globalization, how can we forget about the impact of foreign trade on an
economy. Comparative advantage has always been a factor, even in during old times. While trade
originated in the times of early kingdoms, it has been institutionalized due to globalization. Previously,
people had to resort to unfair means and destruction of kingdoms and countries to get what they wanted.
Today, it is done in a more humane way, with mutual understanding. People who operate in uncivilized
ways have to face the WTO and other world organizations that have been established with a view to
control and regulate trade activities of the countries.
5) Spread of Technical Know-How
while it is generally assumed that all the innovations happen in the Western world, the know-how also
comes into developing countries due to globalization. Without it, the knowledge of new inventions and
medicines would remain cooped up in the countries that came up with them and no one else would
benefit. The spread of know-how can also be expanded to include economic and political knowledge,
which too has spread far and wide. The most obvious example of the spread of knowledge is that the
Western world today is waking up to the benefits of Ayurveda and Yoga - traditional Indian practices,
while the Western antibiotics are flooding the Indian markets and improving the quality of life (and the
longevity too) of people in India.
6) Spread of Culture
Not all good practices were born in one civilization. The world that we live in today is a result of several
cultures coming together. People of one culture, if receptive, tend to see the flaws in their culture and
pick up values that are more correct or in tune with the times. Societies have become larger as they have
welcomed people of other civilizations and backgrounds and created a whole new culture of their own.
Cooking styles, languages, and customs have spread all due to globalization. The same can be said about
movies, musical styles, and other art forms. They too have moved from one country to another, leaving
an impression on a culture which has adopted them.1
7) Spread of Education
One of the most powerful effects of globalization is the spread of education. Today, you can move in the
search of the best educational facilities in the world, without any hindrance. A person living in U.S. can
go to another continent for a new experience which he may not find in his home country. If one is
interested, one can even get a specialization in subjects not indigenous to his country and then spread
that knowledge to the home country. A good example of that is how the American managers went to
1 http://www.buzzle.com/articles/positive-effects-of-globalization.html
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Japan to learn the best practices in the field of mass production and incorporated that knowledge in their
own production units.
8) Legal and Ethical Effects
Gone are the days where the limited jurisdiction became a hindrance in the prosecution of criminals.
These days, due to international courts of justice, criminals can no longer seek asylum in a foreign
country and are thus brought to justice. Due to globalization, there is also an understanding between
security agencies and police of two or more different countries who come together to curb global
terrorism. Hence, it is now possible to catch the perpetrators of crime irrespective of which country they
choose to hide in.2
Negative Effects of globalization:Globalization is a very controversial issue today. Opinions vary considerably over its pros and cons. Here
we take a look at its negative effects.
1) child labor and slavery :There are various schools of thought who argue that globalization has led to an increase in
activities such as child labor and slavery. In countries with little or no accountability, corporations
employing children can work smoothly by bribing the officials, which may result in an increase
in illegal activities. Critics opine that globalization has resulted in a fiercely-competitive global
market, and unethical practices in business are a by-product of this.
2) Increase in Terrorism :Globalization may have inadvertently helped terrorists and criminals. At the heart of globalization
is an idea that humans, materials, food etc. be allowed to travel freely across borders, but 9/11
was a ghastly reminder that people with evil intentions can use it as an opportunity and cause
damage.
3) Increase in pollution :It is not only the developed nations that are complaining about its negative effects, people in
developing nations - where most of the industries have been set up, have their own set of reasons
against globalization. They often complain that their cities have been reduced to garbage-dumps
where all the industrial waste is accumulated and pollution levels are sky-high.
4) Resentment among people :While the rich are getting richer, the poor are struggling for a square meal. If the current Occupy
Wall Street protests are a reminder of how angry people are with the current set-up, then those
who govern us should take notice, and work towards alleviating poverty. Ideally, globalization

2 https://sites.google.com/site/nativgatingtheglobalcomau/the-positives-and-negatives-of-globalization
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should have resulted in creation of wealth and prosperity, but corporate greed and corrupt
government has ensured that money is not distributed equally.
5) Spread of Aids :When the first-known case of AIDS came up in America, only few would have traced its origin to
Sub-Saharan Africa. Globalization bought people from various countries together, and this is
perhaps the reason that a virus from a jungle was transported to almost every country in the
world.
6) Degradation of environment :Environmental degradation is an issue which has been debated ferociously in various
international meetings, and it has to be accepted that globalization is one of the most important
factors that has aggravated the situation. The amount of raw materials needed to run industries
and factories is taking a toll on the natural reserves of planet earth, and pollution has severely
impacted the quality of air that we need so very much for our survival3.

3 http://www.buzzle.com/articles/negative-effects-of-globalization.html
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Conclusion
The implications of globalization for a national economy are many. Globalization has intensified
interdependence and competition between economies in the world market. This is reflected in
Interdependence in regard to trading in goods and services and in movement of capital. As a result
domestic economic developments are not determined entirely by domestic policies and market
conditions. Rather, they are influenced by both domestic and international policies and economic
conditions. It is thus clear that a globalizing economy, while formulating and evaluating its domestic
policy cannot afford to ignore the possible actions and reactions of policies and developments in the rest
of the world. This constrained the policy option available to the government which implies loss of policy
autonomy to some extent, in decision-making at the national level.

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Bibliography:
1. Baylis John, Smith Steve and Owens Patricia, The Globalization of
World Politics (4th Ed, 2008) oxford university press.
2. Burchill Scott, Theories of International relation, 2005, Palgrave
Macmillan, New York.
Web Sources:
1. www.economics.about.com/od/globalizationtrade/l/aaglobalization.ht
m
2. www.buzzle.com/articles/negative-effects-of-globalization.html
3. www.oilprice.com/Finance/the-Economy/12-Negative-Aspects-ofGlobalization.html
4. www.programsandcourses.anu.edu.au/specialisation/GOIR-SPEC

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