NURUKURTHI SATISH B080521EE GUIDE: RATNA KUMAR

The term globalization means international integration. General Agreement on Tariffs and Trade(GATT), led to a series of agreements to remove trade restrictions. GATT's successor was the World Trade Organization(WTO), which created an institution to manage the trading system. Exports nearly doubled from 8.5% of total gross world product in 1970 to 16.2% in 2001.

The term globalization has therefore, four parameters:

Reduction of trade barriers to permit free flow of

goods and services among nation states; Creation of environment in which free flow of capital can take place among nation state; Creation of environment, permitting free flow of technology; and Creation of environment in which free movement of labour can take place in different countries of the world.

Jointly owned by companies from countries: countries: France German Britain and Spain. Spain. Wings from Britain, Fuselage and tail from Germany, Doors from Spain, Cockpit and final assembly in France. France.

Increased choices, Greater potential for growth, Increase international economies of scale, Greater employment opportunity, Developing countries can export goods to developed countries and import goods at cheaper cost, Developing countries can raise capital.

 Increase in gap between the rich and the poor. Dominance of global trade by the rich,

northern hemisphere countries. Lack of opportunities for the poor to be able to have access to markets. Exploitation of workers and growers. Small and medium scale industries have threat from multinational companies. Employment problem exist for short run period.

In early 1990s the Indian economy had witnessed dramatic policy changes. The idea behind the new economic model known as Liberalization, Privatization and Globalization in India (LPG) LPG model of development was introduced in 1991 by the then Finance Minister Dr. Manmohan Singh.

Public sector was opened to private sector. Permitting private sector to set up industrial units without taking a licence. Grant approval for direct foreign investment. Greater autonomy was given to PSU managements and the Boards of public sector companies. The economy was opened to other countries to encourage more exports.

There are many areas to study but main areas of interest are Trade Imports and Exports Foreign investment flow Employment Poverty and Inequality

During period of 11 years (1995-2006) India s merchandise exports increased at the rate of 13.3 percent per annum, china increased at the faster rate of 18.6 percent. world average annual exports of 8 percent. India did benefit from globalization in increasing its export growth rate. But India s share in world merchandise exports improved only marginally from 0.59 percent in 1995 to 0.99 percent in 2006. India s performance in service sector exports was relatively much better, annual average growth of 18.2 percent during the period.

Exports rose from 5.8 percent of GDP in 199091 to 9.1 percent of GDP in 1995-96. Imports increased from 8.8 percent of GDP in 1990-91 to 12.3 percent in 1995-96. There is a deficit in Indian economy. Statistics clearly shows that western countries took the advantage of globalization than India. a net positive balance invisibles has helped it to wipe out the large trade deficit.

Two forms of Foreign Investment Flow are Foreign direct investment (FDI) Foreign Portfolio Investment (FPI)  FDI is continuously increasing from the day of globalization, its share in globalization increased from 24.2 percent to 60.8 percent in 20 years.  FPI is mostly because of software exchange and it is volatile.

We can say globalization decreased employment chances. Agriculture is neglected hence many became unemployed. Employment rate of growth of government jobs went negative during the period 19942000. Private job opportunities increased in a slower phase.

There is a big difference between urban and rural salaries/wages. Policies of globalization helped the already industrialized states much more than less industrialized states and this combined with agriculture has been responsible for inequality and poverty.

Good political governance based on a democratic political system, respect for human rights, the rule of law and social equality. Strong representative organizations of workers and employers are essential for fruitful social dialogue. Balanced Regional Development. Employment Guarantee Programme. Universal access to education.

Thank you