Globalisation is the process of internationalintegration arising from the interchangeof world views, products, ideas, and otheraspects of culture. In particular, advancesin transportation and telecommunications infrastructure, including the rise of the Internet,are major factors in globalization and precipitatefurther interdependence of economic andcultural activities.
Human interaction over long distances hasexisted for thousands of years. The overland SilkRoad that connected Asia, Africa and Europe isa good example of the transformative power ofinternational exchange that existed in the "OldWorld". Philosophy, religion, language, the arts,and other aspects of culture spread and mixedas nations exchanged products and ideas.
Economic policy adopted by the government ofIndia since July, 1991 is termed as economic reforms.
Liberalisation:- means removing unnecessary trade restrictions and making the economy more competitive. Privatisation:- means removing strict control over private sector and making them free to take necessary decisions. Globalisation:- means free interaction among economies of the world in the field of trade, finance, production, technologies and investment. Modernisation:- means the new economic policy according to top priority to modern techniques and technology. Fiscal Reforms:- means controlling public expenditures and increasing revenue in order to discipline expenditure.
Increase in the Rate of Economic Growth Fall in Fiscal Deficit Price Control Reduction in Poverty and Inequality Improving the Efficiency of Public sector Development of Small-scale Industries
Injustice to agriculture Heavy Dependence on Foreign Depts. Dependence on Foreign Technology Excessive Importance to Privatisation Reduction in Employment Opportunities Encouragement to the production of Luxuries
WTO stands for World Trade Organisation. Theaim of this organisation is to conduct theinternational trade among member countries.
Establishing rule based trading regime, free from arbitrary restrictions of the countries. Ensuring optimum utilisation of world resources Protecting environment Promoting international trade by removal of tariff and non-tariff barriers by providing greater market access to member countries
Administering WTO Trade Agreements Handling Trade Disputes Forum for Trade Negotiations Monitoring the National Trade Policies Technical Assistance and Training for Developing Countries
Indian government put barriers to foreign tradeand foreign investment after independence onaccount of the following reasons:- Self sufficiency Heavy investment Elimination of poverty and unemployment Control on core sectors
Indian government want to remove thesebarriers because foreign trade createscompetition which is beneficial for thecustomers And customer get goods at cheaprate with better quality. Indian producers canexport their goods in other countries withoutany barrier and earn handsome profit.
Outsourcing:- is the process of giving some internal functions ofthe business to some outside vendor, who will take care of thatparticular process to help the overall business objective.Call Centre:- is a part of BPO which specially deals in takingcustomer’s calls in case of inbound and making calls tocustomers in case of outbound.Multinational Companies (MNC):- is a company that owns orcontrols production in more than one nation.Business Process Outstanding (BPO):- is an organisation whichWorks on different processes of different companies to helpthem in reducing cost of operation and providing standard andhigh quality service delivery.
MRTP Act:- Monopoly and restricted trade practises act wasestablished in 1970 to regulate the competitive environmentamong companies.Multi-lateral Agreements:- are the agreements entered by groupof countries.Mixed Economy :- is a system in which private and public sectorwork together.International Monetary Fund (IMF) :- is an international financialinstitution that helps member nations to overcome the scarcityof foreign exchange.IT (Information Technology) Sector:- provides hardware,software, and other related services to companies based withinor outside the country.