The document summarizes key topics related to globalization and its impacts. It discusses how the World Trade Organization aims to liberalize trade but retains unfair barriers for developing countries. It also outlines advantages and disadvantages of globalization for India, including greater choices for consumers but challenges for some domestic producers competing with multinational corporations. Additionally, the document notes opportunities in services industries through offshoring and calls centers. Finally, it stresses the need for a fair globalization that benefits all people and allows governments to protect domestic industries and workers' rights during competition.
2. World Trade Organisation
Aim - World Trade Organisation (WTO) is one
organisation whose aim is to liberalise international
trade.
Objectives – It was started at the initiative of the
developed countries. WTO establishes rules
regarding international trade, and sees that these
rules are obeyed. Nearly 160 countries of the world
are currently members of the WTO (as on June
2014).
3. Demerits of WTO –
• Though WTO is supposed to allow free trade
for all, in practice, it is seen that the
developed countries have unfairly retained
trade barriers.
• WTO rules have forced the developing
countries to remove trade barriers.
4. Impact of Globalisation in India
Advantages to consumers (particularly the well
off section in urban areas).
Because now the consumers had –
• Greater choice.
• Improved quality of product at lower price.
• Enjoy much higher standards of living than
was possible earlier.
5. Impact on Producers –
• Firstly, MNCs have increased their
investments in India over the past 20 years,
which means investing in India has been
beneficial for them.
• MNCs have been interested in industries
such as cell phones, automobiles, electronics,
soft drinks, fast food or services such as
banking in urban areas.
• Secondly, several of the top Indian
companies have been able to benefit from
the increased competition.
6. Impact of Globalisation on the service sector –
• Globalisation has also created new
opportunities for companies providing
services, particularly those involving IT.
• The Indian company producing a magazine
for the London based company and call
centres are some examples.
• Some of the services such as data entry,
accounting, administrative tasks, engineering
are now being done cheaply in countries
such as India and are exported to the
developed countries.
7. The struggle for a fair Globalisation
The need for a fair Globalisation – A fair
globalisation would create opportunities for all,
and also ensure that the benefits of globalisation
are shared better.
The role of the government in a fair globalisation –
• Its policies must protect the interests, not only of
the rich and the powerful, but all the people in
the country.
• The government can ensure that labour laws are
properly implemented and the workers get their
rights.
8. • It can support small producers to improve
their performance till the time they become
strong enough to compete.
• The government can use trade and
investment barriers. It can negotiate at the
WTO for ‘fairer rules’.
• It can also align with other developing
countries with similar interests to fight
against the domination of developed
countries in the WTO.
