By : Shriya Talwar 10th C To :Ms Harman Arora

I am very thankful to my economics teacher Ms Harman Arora under whose guidance and supervision I was able to complete this project and came to know about globalisation their advantages and disadvantages and how different countries globalise their products in the world.

Globalisation can be defined as a set of economic, social, technological, political and cultural structures and processes arising from the changing character of the production, consumption and trade of goods and assets that comprise the base of the international political economy. globalization is usually recognized as being driven by a combination of economic, technological, sociocultural, political, and biological factors

Globalization is caused by four fundamental forms of capital movement throughout the global economy. The four important capital flows are: Human Capital (i.e. Immigration, Migration, Emigration, Deportation, etc.) Financial Capital (i.e. Aid, Equity, Debt, Credit & Lending, etc.) Resource Capital (i.e. Energy, Metals, Minerals, Lumber, etc.) Power Capital (i.e. Security Forces, Alliances, Armed Forces, etc.)

Increased

free trade between nations Increased liquidity of capital allowing investors in developed nations to invest in developing nations Corporations have greater flexibility to operate across borders Global mass media ties the world together Increased flow of communications allows vital information to be shared between individuals and corporations around the world Greater ease and speed of transportation for goods and people Reduction of cultural barriers increases the global village effect Greater interdependence of nation-states Reduction of likelihood of war between developed nations Increases in environmental protection in developed nations

Increased

flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labor. Increased likelihood of economic disruptions in one nation effecting all nations. Corporate influence of nation-states far exceeds that of civil society organizations and average individuals. Threat that control of world media by a handful of corporations will limit cultural expression. Greater chance of reactions for globalization being violent in an attempt to preserve cultural heritage Greater risk of diseases being transported unintentionally between nations Spread of a materialistic lifestyle and attitude that sees consumption as the path to prosperity International bodies like the World Trade Organization infringe on national and individual sovereignty Increase in the chances of civil war within developing countries .

Globalization has various aspects which affect the world in several different ways

Industrial - emergence of worldwide production markets and broader

access to a range of foreign products for consumers and companies. Particularly movement of material and goods between and within national boundaries. International trade in manufactured goods increased more than 100 times in the 50 years since 1955. China's trade with Africa rose sevenfold during 2000-07 alone.

Financial - emergence of

worldwide financial markets and better access to external financing for borrowers. By the early part of the 21st century more than $1.5 trillion in national currencies were traded daily to support the expanded levels of trade and investment.As these worldwide structures grew more quickly than any transnational regulatory regime, the instability of the global financial infrastructure dramatically increased, as evidenced by the Financial crisis of 20072010.

Economic

realization of a global common market, on the freedom of exchange of goods and capital. The interconnectedness of these markets, however, meant that an economic collapse in one area could impact other areas. With globalization, companies can produce goods and services in the lowest cost location. This may cause jobs to be moved to locations that have the lowest wages, least worker protection and lowest health benefits. For Industrial activities this may cause production to move to areas with the least pollution regulations or worker safety regulations.

Political

- some use "globalization" to mean the creation of a world government which regulates the relationships among governments and guarantees the rights arising from social and economic globalization. Politically, the United States has enjoyed a position of power among the world powers, in part because of its strong and wealthy economy. With the influence of globalization and with the help of The United States own economy, the People's Republic of China has experienced some tremendous growth within the past decade. If China continues to grow at the rate projected by the trends, then it is very likely that in the next twenty years, there will be a major reallocation of power among the world leaders. China will have enough wealth, industry, and technology to rival the United States for the position of leading world power.

Globalisation is the progressive integration between national economies and the breaking down of barriers between trade and financial flows around the world, which will eventually lead to the emergence of a single world market. Globalisation has affected many different nations in different ways. China is said to be the next economic super power. Many economists predict that in the opening decades of the 21st century, china will match the US and Japanese economies. China currently ranks seventh strongest economy on a global scale. Chinas economic success has not been confined to raw economic growth, especially with a huge trade surplus of over 40 billion according to world guide from 1998. China has an annual per capita Gross Domestic Product (GDP) of $750.

China is a nation that has been able to take advantage of increased globalisation to promote its radical growth and development the past two decades and a bit. However, it is also a nation that has experienced the disadvantages of economic integration. Even though China has experienced the disadvantages of economic integration, the advantages clearly outweigh the negative impacts. Because of economic integration, China has been labelled the next super economic power, and has put itself on the map as a major trading nation. Globalisation has been good to Chinas people especially in improving their lifestyle and annual income. Chinas economic take off has clearly improved lots of the worlds poor more than any other development in the world today.

The single most obvious risk due to reforming a socialist state is inflation due to the removal of price controls. China offcourse has not been immune to inflation, especially with Chinas spectacular growth rates, high inflation is occurring. In the late 1980s, workers found that their buying power was falling, as prices rose by 18.5 per cent in 1988. This was the prime cause of the Tiananmen Square crisis. Because of this China has had to borrow Western market methods of inflation control of controlling the money supply. Also Fiscal policy has been challenged through widespread tax avoidance, which has contributed greatly to the budget deficits. Tax reforms and more efficient spending programs are needed to achieve better fiscal outcomes.

One major incident, which occurred due to globalisation, was in 1989. The year began with a rebellion of intellectuals under the leadership of an astrophysicist by the name of Fang Lizhi who was in tune with Americas views for improvement in human rights. With inflation rising to approximately 30 percent, corruption increasing, and mainly because China ran two systems also known as a half reformed country. These two systems were inevitably always in conflict with the stagnating state sector with its central planning, contrasted with the dynamic pluralistic market sector consisting of township and village enterprises, join ventures with foreign firms, and newly emerging private enterprises. Hundreds of thousands of citizens and workers in Beijing began to demonstrate support for the reform movement. Eventually on June 4 1989, the government called upon hundreds of tanks and heavily armed soldiers who were to spread death and destruction in the main streets of Beijing. This lead to an enormous amount of deaths, but the actual number will most likely never be known.

According to the foregoing analysis, globalization is not merely an intensification of global interconnectedness brought about by market forces and technological change. Rather, it is a worldview shaped by capital and hegemonic power that aspires to establish a global system in line with the interests of capital. Capitalism, as a market-oriented system of production, has an inherent globalizing tendency. However, capitalism is not always characterized by the level of adherence to the liberal principles that globalization represents.

The information and pictures of the project is taken from the internet from various sites. www.google.com www.wikipedia.com www.yahoo.com www.shutterstock.com