The core of globalisation lies in freeing a country's economic frontiers, to allow unrestricted international trade in goods and services, entry and exit of foreign capital and technology and giving the foreign investors a treatment similar to that provided to domestic investors. In its essence, the term globalisation refers to the integration of economies of the world through uninhibited trade and financial flows, as also through mutual exchange of technology and knowledge. Ideally, it contains free inter-country movement of labour as well. The move towards globalisation (say global-integration) is reflected in various forms such as extensive tariff reductions, implementation of other trade promoting measures, fiscal liberalization, easier foreign capital inflows and allowing access of foreign financial institutions, banks, insurance companies etc. to domestic capital (stock) and money markets. The level of this integration is measured in terms of variables such as rising importance of international trade, capital and labour flows, extent of technology transfers from the rest of the world and so on.
Taj Mahal, Agra, India. Deutsch: Taj Mahal im indi...
Globalization
Globalization to the advantage - 2010-09-16It is important here to note that the revolution in information and communication technology in the form of e-mail, e-commerce, fax etc. as well as in the means of transportation has helped make this globalisation process a near reality.
It is said that there are many benefits of globalisation, which manifest through increasing trade. This, in turn, gives the consumers and producers a wider choice of goods, which often incorporate more advanced technology. In pure theory terms, it is said that both the consumers and producers in a globalising country reach higher consumption and production indifferences curves, reflecting greater satisfaction level for the consumers and higher profit level for the producers. More over, opening of the economy means increasing the size of the market. This helps producers reap large economies of scale. The country also...