Globalization, the literary means of globalization is that no barrier in terms of trade and commerce activities. The main purpose of globalization was to create a forum of free and fair trade across the world. It was started by the World Trade Organization (WTO) which was established in 1990 for the intention to create free trade to increase the influence of multinational companies, to provide cheaper products across the world. The most important reason was that the Western and European countries were well developed at that time and they wanted to increase their influence over the entire world with the help of world trade organisation to remove the barriers of tariffs, for the purpose of free trade. The aim or intention through which it was started was proved wrong, as after few years developed nations started rules of a world trade organization and it affects a lot to developing nations.
How it impacts on developing nations?
East Asian countries, as well as Central Asian countries, were either under developing. Despite, then they followed of world trade organization for the purpose to improve their economies and for the cheaper products, but the intention of developed countries was to capture the market for their products, destroyed the small industrialists of developing nations and ruined their entire business as the small businessmen were unable to compete with multinational companies with their cheaper products and finally they closed their firms and becomes unemployed. Globalization played a very important role in increasing unemployment in developing countries and even destroyed the economies of small nations.
Profitable for developed nations
Especially, globalization became a positive factor for developed nations, as they had a large number of multinational companies, those were capable of manufacturing of large amounts of products and have the capital to invest at large scale in developing countries for their new firms to acquire the market of that country and to increase their influence across the world market.
Affects on Indian economy
Globalization affects the Indian economy in several ways. First, it affects small and medium enterprises, ruined the carrier of many workers and increased unemployment. Second, it destroyed the regional art and craft industries and ruined the vulnerable sections of India. Third, it either buys the Indian companies or made a partnership with Indian multinational companies, by doing so, they increase their influence in Indian multinational companies.
No free and fair
Globalization was started for the purpose of free and fair trade. But, due to the pressure of developed countries and world power, and the fight to being number one has eroded the sole purpose of free and fair trade of (WTO) world trade organization. One most important reason was that the tariffs and sanctions imposed by world major economic countries. If globalization has to exist then, it has to give free and fair chance to every nation whether developed or underdeveloped or developing.
Conclusion
Globalization could be free and fair only when developed countries would not interfere in world trade organization rules and follow it in the same direction as it was implemented. If a fair chance would be given to developing countries and no interference of the world's powers, then it will play a better role to improve the world economy.
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