Globalization , Causes and Effects ..

2. Gaurav Chavan

3. Introduction

4. Globalization has come to be a principal characteristic feature of
the new millennium and it has become an inescapable reality in
today's society. No community and society can remain isolated from
the forces of globalization.. Globalization has come to be a principal
characteristic feature of the new millennium and it has become an
inescapable reality in today's society.
Globalization is a process by which people and nations of
the world are unified into a single unit….

6. Meaning...
Globalization is the system of
interaction among the countries of the
world in order to develop the global
economy…

7. We Have
Everything by
Globalization..
We have Nothing
by Globalization..

8. History of Globalization…

9.  The term "globalization" has been used by economists since the
1980s although it was used in social sciences in the 1960s;
however, its concepts did not become popular until the latter half
of the 1980s and 1990s
 The earliest written theoretical concepts of globalization were
penned by an American entrepreneur-turned-minister
 Charles Taze Russell who coined the term 'corporate giants' in
1897..
 The 19th century is called “The First Era of Globalization”.
 It was a period characterized by rapid growth in international trade
and investment. The “First Era of Globalization” began to break down
at the end of the 20th century with the first World War and later
collapsed during the gold standard crisis in the late 1920’s and early
1930’s

10.  Financial Globalization
 Interconnection of the world’s financial systems e.g.
stock markets
 More of a connection between large cities than of nations
 Example: What happens in Asian markets affects the
North American markets.
 Economic Globalization
 A worldwide economic system that permits easy
movement of goods, production, capital, and resources
(free trade facilitates this)
 Example: NAFTA, EU, Multinational corporations

13.  Ecological Globalization
 seeing the Earth as a single ecosystem rather than a
collection of separate ecological systems because so
many problems are global in nature
 e.g. International treaties to deal with environmental
issues like biodiversity, climate change or the ozone
layer, wildlife reserves that span several countries
 Sociological Globalization
 A growing belief that we are all global citizens and
should all be held to the same standards – and have the
same rights
 e.g. the growing international ideas that capital
punishment is immoral and that women should have all
the same rights as men.

14.  Political Globalization
 Countries are attempting to adopt similar political
policies and styles of government in order to facilitate
other forms of globalization
 e.g. move to secular governments, free trade
agreements, etc
 Criminal Globalization
 Intercontinental spread of global crime and its impact
on governments and individuals.
ex. Terrorist Attacks on 9/11

17. 1) Increased free trade between nations.
2) Globalization gives you a larger market. You can sell
more goods and make more.
3) Global mass media ties the world together.
4) Increased flow of communications allows vital information
to be shared between individuals and corporations around
the world.
5) Greater ease and speed of transportation for goods and
people.
6) Technological improvement of the Nation is seen.
7) Greater interdependence of nation-states.
8) Reduction of likelihood of war between developed nations.
9) Increases in environmental protection in developed nations.

18. Marine Drive in
2010
Marine Drive in
1930

20.  Globalization causes unemployment in industrialized countries
because firms move their factories to places where they can get cheaper
workers.
 Globalization may lead to more environmental problems. A company may
want to build factories in other countries because environmental laws are
not as strict as they are at home. Poor countries in the Third World may
have to cut down more trees so that they can sell wood to richer countries.
 Globalization can lead to financial problems . In the 1970s and 80s countries
like Mexico, Thailand, Indonesia or Brazil got a lot of money
from investors who hoped they could build up new businesses there.
These new companies often didn’t work, so they had to close down and
investors pulled out their money.
 Some of the poorest countries in the world, especially in Africa, may get
even poorer. Their population is not as educated as in developed
countries and they don’t have the new technology that we do.
 Human, animal and plant diseases can spread more quickly through
globalization.
 Increase in Pollution due to Urbanization.

25. Globalization
impact on
Indian Economy

26.  The rate of growth of the GDP of India has been on
the increase from 5.6 % during 1980-90 to 7% in
the 1993-2001 period.
 In the last four years, the annual growth rate of the
GDP was impressive at 7.5% (2003-04), 8.5% (2004-
05),9% (2005-06) and 9.2% (2006-07).
 The foreign exchange reserves were $ 39 bn (2000-
01), $107 bn (2003-04),$145 bn (2005-06) and
$180bn (February2007).

27. India's GDP: 2002-07
424
484 534
590 631
0
100
200
300
400
500
600
700
2002-03 2003-04 2004-05 2005-06 2006-07
USDBillion
GDP at Constant Prices
4%
8.5% 7.5%
8.4%
9.4%
205 223
319 347
103 91
116
117
104 109
155
168
0
100
200
300
400
500
600
700
1999-00 2002-03 2005-06 2006-07
USDBillion
Services Agriculture Industry
Fastest GDP growth of 9.4 percent
in 2006-07, since last 18 years
Growth in sectors (2006-07):
Industry: 10.9%
Services: 11%
Agriculture: 2.7%
The Indian economy
has witnessed
an unprecedented
growth….
Booming Indian
services and
industry sector
are providing
the required
impetus to the
economic growth
India’s GDP

28.  India’s trade deficit during 1990-1991 to 2006-
2007 ranged between 3.6% to 6.9% of GDP.
 The fluctuation in Foreign portfolio Investment
were much sharper then FDI, The FPI rate
decreases by 36% from period 1990-00 and
again shows upward growth rate in period 00-07
was 22.1%.
 FDI (net) shows a gradual upward growth from
$97 million in 1990-1991 to $3272 million in
2000-2001 and again rising and touching the
peak of $8779 million in 2006-2007.

29. FDI Inflow - India:2001-07
4,222
3,134 2,634
3,755
5,546
15,730
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
USDMillion
Net FII into India:2001-07
1.80
0.60
10.00 10.20
9.40
6.72
0
2
4
6
8
10
12
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
USDBillion

30. Share in world exports raise from 0.52%
in 1990 to 1% in 2007. In the rate of
growth of per capita income there has
been a sharp acceleration in the growth
of per capita income, almost doubling
to an average of 7.2% p.a. (2003-04 to
2007-08).

31. India's Exports:2002-07 (tillFebruary2007)
52.81
63.95
83.81
103.42
112.40
0
20
40
60
80
100
120
2002-03 2003-04 2004-05 2005-06 2006-07
(upto Feb.
07)
USDBillion
India's Import:2002-07 (till February2007)
61.52
78.28
111.89
149.65
162.30
0
20
40
60
80
100
120
140
160
180
2002-03 2003-04 2004-05 2005-06 2006-07
(upto Feb.
07)
USDBillion

32. Is Globalization Necessary..?
Before saying yes or no we need to analyze India's stand before
Globalization..
From the 1991 onwards India is walking on the track of development.
Globalization has affected everything positively from living standard to
external trade and investment, from agriculture to banking and finance, from
industry and infrastructure to global trade relations, and from education to
employment.
Though in this race of faster growing economies several of our Indian states
lagging behind. Corruption has been one of the pervasive problems affecting
India.
Every medicine has it's own side effects. So, it can't be said that it's
unnecessary.
In fact, it is necessary to spread the development & globalization and reach
out to the states which have been suffering in pace..