- It is a complex phenomenon which is generally understood as the integration of the economy of the country with the world economy through uninhibited trade and financial flows. It facilitates the interdependence and interconnection between different countries and helps them establish trade as well as cultural relationships.
- Globalization as understood from the economic point of view as the result of greater foreign investment and greater foreign trade done by the means of Multi-National companies.
- The process of globalisation in India was primarily encouraged by the New Economic Policy of 1991, of which the third major aspect was globalisation itself and it was facilitated by the steps taken in the direction of Liberalisation and Privatisation. Which means that Liberalisation and Privatisation formed a base to encourage Globalisation. MNCs play a crucial role in globalisation and thus benefits both the host and parent nation in several significant ways.
Advantages of Globalisation:
- Improvement in Balance of Payments.
- Rise in foreign earnings.
- Increase in the level of Employment.
- Increase in the purchasing power, rise in disposable income and enhancement of living standards.
- Technological Advancements and import of latest technologies.
- Advancement in managerial capabilities.