Globalization

Economic globalization comprises to increasing economic interdependence of national economies across the world through a rapid increase in cross border movement of goods, service, technology and capital leading to the emergence of a global marketplace or a single world market.

Economic globalization is an irreversible process due to the growing demands in every facet of globalized markets from both developed and developing nations and economic policies of various nations have suppressed the impetus for their own economies to move forward thus debunking theory of economic globalization as a primarily irrevocable phenomena.

Globalisation is praised for bringing unprecedented prosperity and the accelerating pace of globalisation is having a profound effect on life in rich and poor countries and in transforming regions.

The world trade has been the engine of globalisation in last 50 years and in the post war years more and more of the global production has been carried out by big multinational companies who operate across borders.

Organisations which operate world wide must redefine their ventures beyond borders in Red ocean and Blue ocean strategies.

Multinational companies have identified to invest rapidly in developing economies to achieve cost advantages and expand their operations mainly targeting customers at the top of the wealth pyramid but they were not affluent to extract the full value of their investments.

As the trend towards globalisation continues the business expansion would be fuelled by improved market penetration, geographic expansion, mergers and acquisations and often across borders which will further accelerate India’s growth.

India has been ranked fifth in wielding economic clout globally after the US, China, Japan and Germany, and ahead of European powers France and the UK.

The key question is whether the growing globalisation of the world economy will lead to a increase in global economic growth and equality.