Discuss the role of globalisation
Globalisation means integration of the economy of the country with the world economy. It aims to encourage foreign trade, private and institutional foreign investment. It creates various policies that try to turn the world in to one.
- Globalisation has opened new and many opportunities for the companies in service sector, especially the IT companies. These companies have offered their cheap but efficient consulting services to many nations. This has also created millions of jobs in India.
- The technology has been transferred from developing countries. It enabled to produce quality goods make available in the international market. During the post reform period, Indian export share in the international market has increased from 0.5% to 1%. Due to the flow of MNCs capital in foreign currency, the availability of foreign exchange increased to a great extent. Foreign investment has increased from US $ 6 billion in 1990-91 to US $ 125 billion in 2004-05.
- Increased investments in Indian markets by the MNC have led to the growth of Indian economy. In many fields such as automobile, cell phone, soft drinks, fast food and garments. MNCs have given vast choices of products to the consumers.
- Local companies supplying raw materials to MNCs have developed and prospered. Many Indian companies such as Tata Motors and Ranbaxy themselves have become multinational companies themselves.