Globalisation originates from developed countries and MNCs based in those countries.
Technologies, capital, products and services are allowed to enter from developed countries to developing countries.
It also leads to creation of a new world order with no national boundaries. Economically, it simply means opening up of national market, free trade and commerce among nations, free flow of labour, capital and technology, and integration of national economies with the world economy.
Politically, it means limited powers and functions of state, more rights and freedoms granted to the individual and empowerment of the private sector culturally it means exchange of cultural values between societies and between nations; and ideologically, it means the promotion and spread of liberalism and capitalism.
It is the developing countries which needs to be adapted with the changing situations and to accept those new ideas for attaining higher level of socio-economic development.
Literature Review On Financial Management - Globalization In Education Essay
The above characteristics of globalisation simply suggests that there is a great need for global integration under the present global economic scenario.
In view of the current global recession and financial crisis, there is a paramount importance of global integration.
(i) Globalisation helps to boost the long run average growth rate of the economy of the country through: (a) Improvement in the allocative efficiency of resources; (b) Increase in labour productivity; and (c) Reduction in capital-output ratio.
Under globalisation, localities being connected with the world by breaking national boundaries; forging of links between one society and another and between one country and another through international transmission of knowledge, technology, ideas, information, literature and culture.
Globalisation makes way for establishing ‘borderless globe’, the ideal of which was articulated by Kemichi Ohmae.