| What has lead to integration of economies worldwide | | | | e-commerce and information technology networks |
| cannot be just a simple, single phenomenon? From | | | | have led to lower cost of transactions and of doing |
| the angle of 'globalization,' world economy cannot be | | | | business globally. This has created new ways to |
| bifurcated. It has to be viewed as a single market | | | | organize firms at global level. This macro-process can |
| even at the macro 'global' level. This beautiful vast | | | | be narrowed at the micro level of firms. At the |
| concept that has come to the shore after the signing | | | | independent firm level LPG process means |
| of WTO in April 1990, can best be compared to a | | | | configuration and coordination of activities across |
| string of multi-colored beads that has incorporated | | | | national boundaries in order to maximize profit and |
| different flowering economic divisions round the | | | | remain competitive. That's how the MNC |
| seven seas together. The International Monetary | | | | (multi-national companies) culture has been |
| Fund defines globalization as a "historical process" | | | | popularized. What exactly has moved the economic |
| involving "the increasing integration of economies | | | | circumstances and factors that have spurt the |
| around the world, particularly through trade and | | | | globalization and liberalization is enhanced efficiency in |
| financial flows." ("Globalization: Threat or | | | | production made possible by increased specialization. |
| Opportunity?" January 2002.) | | | | In all this, "Information technology (IT) was key to |
| "Globalization and deregulation of finance capital had | | | | the superior overall macroeconomic performance of |
| happened so fast and so massively and so recklessly | | | | the United States in the 1990s--high productivity, high |
| as well that more than stable investment for | | | | growth, low inflation, and low unemployment. But IT |
| productive activity and trade, what was experienced | | | | also played a role in increasing earnings." (Mann, |
| was huge flow of destabilizing speculative capital. By | | | | Catherine L; (assisted by) Kirkegaard, Jacob Funk. |
| 1990, it became the very force driving the world | | | | June 2006.) Easy movement of factors of production |
| economy." (Sundaram, N M. May 2006.) | | | | across the globe has facilitated MNC firms to locate |
| It has become a catch-up concept to describe a | | | | different parts of their production process in various |
| range of trends and forces leading to openness, | | | | countries that has made possible the increase in |
| integration and interdependence of economies. In | | | | production levels due to better exploitation of |
| short, LPG process--liberalization, privatization and | | | | economies of scale. |
| globalization--has engulfed the earth, ignoring the | | | | It has resulted in greater worldwide acceptance and |
| international boundaries to quiet an extent. | | | | commitment to the free trade principle and market |
| Cost-benefit estimate and discussion of policy | | | | economy along with dismantling of planned |
| measures to mobilize the global response is a routine | | | | economies. Though the economic field has increased |
| for economists that can never be termed as | | | | but the polarizations of organized and unorganized |
| mundane with minute-to-minute new developments. | | | | has worsened the scene, increasing the disparity |
| They cannot afford to ignore it as these days | | | | between the two. The idea of "Global Development |
| production area is not regional or sub-sectoral, rather | | | | Network, a global network of research and policy |
| it's a set of national economies linked by trade and | | | | institutes working together to address the problems |
| investment flows. | | | | of national and regional development, was conceived |
| "... the convergence of technology and events that | | | | and launched by the World Bank in 1999 at its first |
| allowed India, China, and so many other countries to | | | | annual conference in Bonn." ( |
| become part of the global supply chain for services | | | | As John Nichols has observed ("One Dead, Eighty |
| and manufacturing, creating an explosion of wealth in | | | | Injured in Genoa," The Nation, July 2001.) "The |
| the middle classes of the world's two biggest nations, | | | | economic policies promoted by the [G8] leaders...are |
| giving them a huge new stake in the success of | | | | now so unpopular that gatherings must be 'protected' |
| globalization? And with this 'flattening' of the globe, | | | | with deadly police violence... .If the croupiers of |
| which requires us to run faster in order to stay in | | | | corporate capital really believe that restructuring the |
| one place, has the world got too small and too fast | | | | global economy to limit protections for workers, the |
| for human beings and their political systems to adjust | | | | environment, and human rights represents a positive |
| in a stable manner?" (Friedman, Thomas. April 2005.) | | | | development, why must they employ deadly force |
| What's important is optimal utilization of global | | | | to defend the meetings at which they plot their |
| resources including competitive sourcing of inputs for | | | | warped vision of 'progress'?" |
| achieving cost competitiveness in production, | | | | The requirement is of handshake between the global |
| economies of scale in operations and efficient | | | | giants to carry forward the small-scale industries in |
| technology utilization. Easy movement of product and | | | | the developing countries, while on the other end, |
| factor flows across borders involving merchandise | | | | most developed and transitional countries face |
| trade, services, investment, financial capital, | | | | daunting economic and social problems ranging from |
| technology and labor. Competition, production and | | | | persistent unemployment to massive public deficits to |
| markets become global in nature and goods and | | | | unregulated immigration. The problem is as big as the |
| services become less distinguishable or identifiable | | | | magnitude of globalization demanding immediate |
| with their country of origin. | | | | attention and consensus of the global community. |
| Besides, improvements in transport, communication, | | | | |