Meaning of Globalization
Globalization is concerned primarily with global marketing. Which reflects the expansion of business opportunities. In globalization, interdependence between the world markets arises because business is advancing in the conditions of tapping the conditions of profit not in the boundaries of the country.
For this purpose, becoming globalized through the world’s information and transport resources is globalization. In such systems, open economies are born, which is free of restrictions and in which free trade is done. Thus, the place of multinational companies or rules becomes important in globalization.
Globalization is meant to connect the economy of any country with the economies of other countries of the world, thereby expanding business activities globally and developing competitiveness of countries. Thus, globalization is also seen in the form of internationalization. In other words, globalization means integrating the economy of the world with the world economy.
Definition of Globalization
Globalization is a process in which a country’s economy is integrated with the whole world economy so that the entire world can function as a single economy and a single market and in which individuals, capital, technology goods for borderless internationalization practices , The transitional exchange of information and knowledge can be easily accessible. Globalization is also called by universalisation, globalization and international names. “
Needs of Globalization
(1) Globalization is a process of uniformity and homogeneity, in which the whole world becomes one by one.
(2) A policy of globalization has been adopted for the rapid development of the economy.
(3) Globalization is the association of national industries with international rules or multinational corporations dealing with goods and services in other countries outside the boundaries of one nation.
(4) Various nations of the world satisfy their needs by purchasing and selling goods and services through the demands of the market system and the relative strength of fulfillment of the market system with mutual cooperation and goodwill.
(5) Under this policy, 34 industries were included. Under the industrial policy, foreign capital investment up to 51% in high priority industries has been permitted.
(6) The policy of globalization was restricted to the basic areas such as electricity, coal, petroleum, for industrial goods manufactured by foreign advanced technology and industrial structure of the nation.
(7) In cases where foreign capital for the machines will be available, they will be allowed to own the industry.
(8) The Foreign Exchange Regulation Act also amended.
(9) At present, other private companies are also moving forward in industrial world by establishing units in foreign countries.
Features or Characteristics of Globalization.
i. In this, efforts are made to minimize trade barriers globally, allowing easy and smooth movement of goods and services between two nations.
ii. Globalization gives birth to the developed nature of industrial organizations.
iii. The developed nations prefer to deploy their huge funds in interest rates for developing countries so that they can get the benefit of advanced rate.
iv. Efforts are made to create such an environment in national and international markets that, through the free flow of information and technology among the different countries, the advantage of advanced technology can be lifted by all nations.
v. Capital is the soul of business organizations. Under globalization, there is a free flow of capital between the countries which have different agreements, so that the construction of the capital becomes possible.
vi. Globalization also inspires intellectual labor and property, that means freely traveling from one country to other countries, the working class and personnel classes are possible.