Globalisation

POLTICAL SCIENCE
PROJECT
NAME: MUJTABA ABIDI
CLASS: 12 L

Certificate
◦ This is to certify that Mohammad Mujtaba Abidi, Roll No 14637370 of class 12 has successfully
completed the project work in Political science for class XII practical examination of the Central
Board of Secondary Education in the year 2021-2022.
◦ The project on evaluation fulfils the required criteria. It is further certified that this project is the
individual work of the candidate.

Acknowledgement
◦ I would like to express my sincere gratitude to my teacher Ma’am Apoorva Rai who gave
me this opportunity to do this wonderful project on the topic. The project helped me learn
how to do proper Research and I learned about many new things while doing the project.
◦ The blessing, help and guidance given by them time to time shall carry me a long way in
the journey of life on which I am about to embark.

INDEX
◦ Introduction
◦ Statement of purpose
◦ Meaning, cause Reasons for globalization
◦ Positive and negative impacts of globalization
◦ India and globalization
◦ Covid 19 and its impact on globalization
◦ Book, review of literature
◦ Conclusion
◦ Bibliography
◦ Certificate

Introduction
◦ People around the globe are more connected to each other than ever before. Information and money flow
more quickly than before . Goods and services produced in one part of the world are increasingly available
in all parts of the world. International travel is more frequent. International communication is becoming
more common. This phenomenon is called “globalization”
◦ Globalization is a process of interaction and integration among the people, companies, and government of
different nations, a process driven by international trade and investment and aided by information
technology. This process has effects on the environment and prosperity, and human physical well -being in
societies around the world.

Hypothesis
• To study that Globalization influences the economic process.
• To study Globalization influences the ideologies of people and their way of thinking.
• To study Globalization influences the cultural life , its science and its educational system.
• To study Globalization influences the political and social life of the people.
• To study Globalization lead to the growing interdependence of the world's economies, cultures, and
populations, brought about by cross-border trade in goods and services, technology, and flows of
investment, people, and information.

I would like to research on globalization and its impact in the current situation. Globalization is the free
flow and exchange of trade , ideas , movement of people etc. Globalization has interconnected
different people across the world. Its not just flow of ideas and trade but diseases as well. The Covid -
19 pandemic is a clear example of how diseases has spread worldwide due to free flow and exchange
of people.
In the coming slides I will be emphasizing on the positive and negative impacts of globalization.
Statement of purpose

Globalization Meaning
◦ Globalization can be defined as a process of rapid economic, cultural, and institutional integration
among countries.
◦ This unification is driven by the liberalization of trade, investment and capital flow, technological
advances and pressures for assimilation towards international standards.
◦ Globalization makes the world more accessible to everyone.
◦ Globalization means rapid increase in the share of economic activities talking place across national
borders.
◦ According to the IMF globalization stands for ‘the growing economic interdependence of countries
worldwide through increasing volume and variety of cross –border transactions in goods and
services and of international capital flows , and also through the more rapid and widespread
diffusion of technology’.

Causes of globalization
Globalization
Capital Mobility Multinational Companies
Lower tariffs
Labour Mobility
Technology
Improved Transport

Main reasons For Globalization
◦ Improved transport : Making global travel easier. For example , there has been a rapid growth in travel,
enabling greater movement of people and good across the globe;
◦ containerization : From 1970, there was a rapid adoption of the steel transport container. This reduced
the costs of inter-modal transport, making trade cheaper and more efficient.
◦ Improved technology : Which makes it easier to communicate and share information around the
world. E.g. Internet
◦ Growth of multinational companies : with a global presence in many different economies. Growth of
global trading blocks which have reduced national barriers (e.g. European Union, NAFTA, ASEAN)
◦ LPG Reforms: The 1991 reforms in India have led to greater economic liberalisation which has in turn
increased India’s interaction with the rest of the world.
◦ Faster Transportation: Improved transport, making global travel easier. For example, there has been a
rapid growth in air-travel, enabling greater movement of people and goods across the globe.

◦ Reduced Tariff barriers : which encourage global trade. Often this has occurred through the support of
the WTO
◦ Improved mobility of capital. In the past few decades, there has been a general reduction in capital
barriers, making it easier for capital flow between different firms to receive finance. It has also increased
the global interconnectedness of global financial markets.
◦ Increased mobility of labour : People are more willing to move between different countries in search for
work. Global remittances now play a large role in transfers from developed countries to developing
countries.
◦ Internet : This enables firms to communicate on a global level, this may overcome managerial
diseconomies of scale. The firm may be able to get cheaper supplies by dealing with a wider choice of
firms. Consumers are also able to order more goods online.
◦ E.g. Amazon, Flipkart etc

Impacts of Globalization
◦ Cities now compete with one another on a global scale to attract financial investment and the well-
educated and mobile workforces. They have become centers for socio-economic development as well
as sites for promoting global commerce.
◦ The impact of globalization on urban planning is also related to the change in the realm of politics.
◦ Urbanization is one of the negative impacts of the globalization and integration of economies.
◦ Globalization leads to urbanization. According to the United Nations Center for Human Settlements, in
1900 there were only four cities with a population over 100,000 or more and in 1961 there were 141
cities and today the world urban population is increasing at the rate of 1.3 per cent per annum in the
period 1995-2000.
◦ The increased economic investment and proliferation in infrastructure development projects are
exerting enormous pressure on the existing resources and the capacity of the cities to accommodate
this unprecedented growth.

◦ Other detrimental consequences include poverty, housing shortage, inefficient and inequitable
delivery of infrastructure services, economic inequality, social inequality
◦ Globalization has increased the disparities between the developed or the rich and the poor nations.
The developing countries, for example African countries seem to be excluded from the
technologically advanced, information based economy of the world system.
◦ At the same time, there is also an increasing social and economic disparity within the urban areas in
the developed countries the high skilled workers are in a better position than before with the advent
of high-technology jobs and there has not been a proportional increase for the low skilled workforce
◦ There has been a change in the spatial division of labour and techniques of production where the
different stages of production could be divided according to specific features and specializations of
different regions and their workforce.

◦ Political Consequences
◦ Globalisation results in an erosion of state capacity i.e. by reducing the ability of government to do
what they want to do.
◦ It gives way to a more minimalist state that performs certain core functions such as the maintenance
of law and order, and the security of its citizens.
◦ In place of the state the market becomes the prime determinant of economic and social priorities.
◦ Globalization does not always reduce state capacity. The primacy of the state continues to be
unchallenged basis of political community.
◦ State capacity has received boost as a consequence of globalization, with enhanced technologies
available at the state to collect information about its citizens.

◦ Economic Consequences
◦ In order to understand economic consequences of globalization it is important to know that in economic
globalisation involves many actors other than IMF, WTO.
◦ It involves greater economic flows among different countries of the world. Some of this is voluntary and
some forced by international institutions and powerful countries.
◦ Globalization has involved greater trade in commodities across the globe as it has reduced the imposing of
restrictions on the imports of one country on another.
◦ Economic globalization has created an intense division of opinion all over the world.
◦ According to some, economic globalization is likely to benefit only a small section of the population.
◦ On the other hand advocates of economic globalization argue that it generates greater economic growth
and well-being for larger sections of the population.

◦ Cultural Consequences
◦ The consequences of globalization can also be seen on our culture too and thus it is not confirmed only
to the sphere of politics and economy.
◦ The process cultural globalization poses a threat because it leads to the rise of a uniform culture or
what is called cultural homogenisation. E.g Western culture on rest of the world
◦ Cultural globalization has both positive as well as negative effect on the world.
◦ While cultural homogenisation is an aspect of globalization, the same process also generates precisely
the opposite effects; ( Cultural Heterogenisation ) It leads to each culture becoming more different
and distinctive.

Positive Impact of Globalization
◦ Global market : The impact of globalization on business management is seen by the sudden increase of
number of transactions across the borders. In protecting yields and maintaining competitiveness,
businesses are continuing to develop a wide range of their footprint as it lowers cost and enjoys economies
of scale.
◦ Multinational corporations is a result of globalization. They occupy a central role within the process of
globalization as evidenced through global foreign direct investment inflows. Through this they will enlarge
their market and enjoy economies of scale, as globalization facilitates time space compression, economies
compete at all levels including that of attracting investors

◦ Cross-cultural management : Highly educated and wealthy people from different backgrounds interact
within a westernized milieu. Western styles, since are symbols of affluence and power, the elite often
embraces western styles of products and pattern of behaviour in order to impress others. Today Western
culture and patterns of behaviour and language are staples of international business
◦ Even attitudes and ideas about society, religion and technology are transformed by cultural diffusion
brought by globalization. Example, McDonalds
◦ Foreign trade : Globalization has created and expanded foreign trade in the world. Things that were only
found in developed countries can now be found in other countries across the world. People can now get
whatever they want and from any country. Through this developed countries can export their goods to
other countries. Countries do business through international trade, whereby they import and export
goods across the global. These countries which export goods get comparative advantages.

◦ World trade organizations emerged as a powerful international organization capable effectively
influencing individual governments to follow international trade rules, copyrights, policies on subsidies,
taxes and tariffs. Nations can not break rules without facing economic consequences
◦ Resource Imperative: while developing countries need capital, technology and brainpower of the
wealthier countries. Developed countries need natural and human resources of the developing countries.
Economies are increasingly dependent on the natural and human resources of the developing nations.
◦ Foreign investment: One of the most visible positive effects of globalization in India is the flow of foreign
capital. A lot of companies have directly invested in India, by starting production units in India, but what
we also need to see is the amount of Foreign Investment Inflow that flows into the developing countries.
Indian companies which have been performing well, both in India and off the shores

◦ Competition: One of the most visible positive effects of globalization is the improved quality of
products due to globe competition. Customer service and the ‘customer is the king’ approaches to
production have led to improved quality of products and services. As the domestic companies have
to fight out foreign competition, they are compelled to raise their standards and customer
satisfaction levels in order to survive in the market. Besides, when a global brand enters a new
country, it comes in riding on some goodwill, which it has to live up to. This creates competition in
the market and a survival of the fittest situation.
◦ Culture: People of one culture, if receptive, tend to see the flaws in their culture and pick up the
culture which is more correct or in tune with the times. Societies have become larger as they have
welcomed people of other civilizations and backgrounds and created a whole new culture of their
own. Cooking styles, languages and customs have spread all due to globalization.
◦ Legal Effects: Increased media coverage draws the attention of the world to human rights
violations. This leads to improvement in human rights. Global economic growth does not necessarily
make people happier, worldwide free trade, should also benefit humanity as well as protect nature,
not just reward managers and stockholders

◦ Due to globalization, there is also an understanding between the security agencies and the police of two
or more different countries who will come together to curb global terrorism. Hence, it is now possible to
catch the perpetrators of crime irrespective of which country they choose to hide in. This is undoubtedly
one of the greatest positive effects of globalization on society.
◦ Poverty alleviation: As far as poverty reduction is concerned, globalization played a role in poverty
reduction in developing countries. In deed most developed countries experienced reduction in poverty in
the proportion of their living below the poverty line, including fast developing countries like China, India,
Vietnam.
◦ Employment situation: Through globalization, people from different countries are provided with jobs
opportunities within the global. It has created the concept of outsourcing. Developed countries prefer to
provide work to developing countries where costs are cheap. Work such as customer support, software
development, accounting, marketing and insurance are given to developing countries like India. Therefore
the country that is given the work enjoys by getting jobs.

◦ Technology: This is a powerful force that drives the world toward a converging commonality. It has
proletarianized communication, transport, and travel. People from different places everywhere
wants all the things they have heard about, seen, or experienced through technology.
◦ Television and medias played a big role in influencing the perception of the world, from a relatively
small national unity and reality, into a global market and international concerns. As multinationals
establish subsidiaries in new locations, they transfer know how from the parent to the local
operation.
◦ Education: It has increased the access of higher education example universities and reducing the
knowledge gap in developing countries, it equally has negative aspects which can seriously threaten
universities in those countries.

NEGATIVE EFFECTS
Globalization also have its side effects to the developed nations. These include some factors which are
jobs insecurity, fluctuation in prices, terrorism, fluctuation in currency, capital flows and so on.
JOBS INSECURITY: In developed countries people have jobs insecurity. People are losing their jobs.
Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their
people. This is because the manufacturing work is outsourced to countries where the costs of
manufacturing goods and wages are lower than in their countries.
Globalization has led to exploitation of labour. Safety standards are ignored to produce cheap goods. In
practice, however, the recent experience in Latin America has been that many such open-handed
multinationals moved their operations to, for example, China or South East Asia because of cost and
market considerations
FLUCTUATION IN PRICES: Globalization has led to fluctuation in price. Due to increase in competition,
developed countries are forced to lower down their prices for their products, this is because other
countries like China produce goods at a lower cost that makes goods to be cheaper than the ones
produced in developed countries. So, in order for the developed countries to maintain their customers
they are forced to reduce prices of their goods. This is a disadvantage to them because it reduces the
ability to sustain social welfare in their countries.

◦ Unemployment: Globalization is a blame to world’s unemployment situation though it brought some
jobs opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame
to the current situation.
◦ For example ,Indonesia faced unemployment and poverty that grew to levels not experienced in two
decades, health conditions worsened, and the natural environment degraded.
◦ Spread of fast foods chain: Fast foods chain is growing very fast. But some of the most rapid growth is
occurring in the developing countries, where it’s real changing the way people eat. KFC, Mc Donalds etc
are the largest, fastest growing, and highest potential units.
◦ Most people prefer to buy fast foods because it’s cheap and quick. This replaces home cooked fare
enjoyed with family and friends. Traditional diets and recipes are yielding to sodas, burgers, and other
highly processed and standardized items that have a lot of fat, sugar, and salt resulting a global epidemic
of diabetes, obesity, and other chronic diseases.

◦ Western culture: Globalization has led to the spread of western culture and influence at the expense
of local culture in developing countries . Most people now in developing countries copy what people in
developed countries do. So, its like they ignore their own culture and practice western culture. For
example dressing styles and eating habits, language. All these can affect management in one way or
another example it can cause misunderstandings because of language barrier.
◦ Trade: Average tariff rates continue to be high in many developing countries, including some that have
recently implemented trade reforms. Example, India. Trade policy continues to be an important aspect
in globalization at least in some of the lower income developing countries.
◦ Widespread use of computers, faxes and mobile phones, introduction of the internet and e-commerce,
and quicker and cheaper means of transportation in some cases offered opportunities to developing
countries, but in many cases deepened the gap between global firms and traditional industries.

India and Globalization
◦ Impact of Globalization on Agricultural Sector:
Agricultural Sector is the mainstay of the rural Indian economy around which socio-economic
privileges and deprivations revolve and any change in its structure is likely to have a corresponding
impact on the existing pattern of Social equity. The liberalization of India’s economy was adopted by
India in 1991. Facing a severe economic crisis, India approached the IMF for a loan, and the IMF
granted what is called a ‘structural adjustment’ loan, which is a loan with certain conditions attached
which relate to a structural change in the economy. Essentially, the reforms sought to gradually phase
out government control of the market (liberalization), privatize public sector organizations
(privatization), and reduce export subsidies and import barriers to enable free trade (globalization).
Globalization has helped in:
• Raising living standards,
• Alleviating poverty,
• Assuring food security,
• Generating buoyant market for expansion of industry and services, and
• Making substantial contribution to the national economic growth.

◦ Impact of Globalization on Industrial Sector:
Effects of Globalization on Indian Industry started when the government opened the country's markets to
foreign investments in the early 1990s. Globalization of the Indian Industry took place in its various sectors
such as steel, pharmaceutical, petroleum, chemical, textile, cement, retail, and BPO.
◦ Globalization has increased across the world in recent years due to the fast progress that has been made
in the field of technology especially in communications and transport. The government of India made
changes in its economic policy in 1991 by which it allowed direct foreign investments in the country. The
benefits of the effects of globalization in the Indian Industry are that many foreign companies set up
industries in India, especially in the pharmaceutical, BPO, petroleum, manufacturing, and chemical sectors
and this helped to provide employment to many people in the country. This helped reduce the level of
unemployment and poverty in the country
◦ This helped reduce the level of unemployment and poverty in the country. Also the benefit of the Effects
of Globalization on Indian Industry are that the foreign companies brought in highly advanced technology
with them and this helped to make the Indian Industry more technologically advanced.

Economic Impact:
Greater Number of Jobs: The advent of foreign companies and growth in economy has led to
job creation. However, these jobs are concentrated more in the services sector and this has
led to rapid growth of service sector creating problems for individuals with low level of
education. The last decade came to be known for its jobless growth as job creation was not
proportionate to the level of economic growth.
More choice to consumers: Globalisation has led to a boom in consumer products market. We
have a range of choice in selecting goods unlike the times where there were just a couple of
manufacturers.
Higher Disposable Incomes: People in cities working in high paying jobs have greater income
to spend on lifestyle goods. There has been an increase in the demand of products like meat,
egg, pulses, organic food as a result. It has also led to protein inflation.

Socio-Cultural Impact on Indian Society
◦ Access to education: On one hand globalisation has aided in the explosion of information on the web that
has helped in greater awareness among people. It has also led to greater need for specialisation and
promotion of higher education in the country.
◦ On the flip side the advent of private education, coaching classes and paid study material has created a
gap between the haves and have-nots. It has become increasingly difficult for an individual to obtain
higher education.
◦ Growth of cities: It has been estimated that by 2050 more than 50% of India’s population will live in cities.
The boom of services sector and city centric job creation has led to increasing rural to urban migration.
◦ Indian cuisine: It is one of the most popular cuisines across the globe. Historically, Indian spices and herbs
were one of the most sought after trade commodities. Pizzas, burgers, Chinese foods and other Western
foods have become quite popular.
◦ Clothing: Traditional Indian clothes for women are the saris, suits, etc. and for men, traditional clothes are
the dhoti, kurta. Hindu married women also adorned the red bindi and sindhur, but now, it is no more a
compulsion. Rather, Indo-western clothing, the fusion of Western and Sub continental fashion is in trend.

Indian Performing Arts: The music of India includes multiples varieties of religious, folk, popular, pop,
and classical music. India’s classical music includes two distinct styles: Carnatic and Hindustani music. It
remains instrumental to the religious inspiration, cultural expression and pure entertainment. Indian
dance too has diverse folk and classical forms. The Indian Classical music has gained worldwide
recognition but recently, western music is too becoming very popular in our country. Fusing Indian music
along with western music is encouraged among musicians. More Indian dance shows are held globally.
The number of foreigners who are eager to learn Bharatanatyam is rising. Western dance forms such as
Jazz, Hip hop, Salsa, Ballet have become common among Indian youngsters
Nuclear Families: The increasing migration coupled with financial independence has led to the breaking
of joint families into nuclear ones. The western influence of individualism has led to an aspirational
generation of youth. Concepts of national identity, family, job and tradition are changing rapidly and
significantly.

Covid 19 and its impact on globalization
◦ The pandemic has exposed the urgent need to revisit disaster preparedness and public health
response to a health crisis such as COVID-19. Though much progress has been made in the nations'
and the world's ability to respond to a public health emergency, the healthcare capacity of various
powerful nations has been tested during this pandemic. Even developed countries with
sophisticated infrastructure, sanitation, and hygiene that have undergone epidemiological
transitions are facing difficulties controlling the epidemic. Less developed countries, however, have
been overwhelmed, with many nations unable to adequately respond to and control the pandemic
due to the lack of infrastructure, resources, fragile governments, and impoverished communities.

Globalization in Covid times.
Impact on mobility
Air Travel : Ten significant airlines covering over 50 countries presented large coverage in terms of
passengers carried. Airlines such as Turkish, Delta, and Lufthansa Group each carried more than 5
million passengers per month in 2018–2019. Most airliner countries have responded to COVID-19 by
implementing international travel bans from affected countries. On average, about a 30% reduction in
stock prices has been observed among major airlines.
Event cancellation : Social distancing has been implemented since the pandemic broke out, which led
to the cancellations of numerous events across the world. For instance, the 2020 Summer Olympics to
be held in Japan was rescheduled for 2021. Sports events such as athletics, cycling, soccer, golf, auto
racing, tennis, cricket, badminton, rugby, and basketball have been cancelled or postponed.

Impact on workforce:
With lockdowns and travel restrictions, the workforce has been affected universally. About 62% of the global
employment constitutes of an informal economy characterized by a lack of social security, benefits, healthcare
access, income security, or the possibility of working remotely; thus exposing the most vulnerable group.
Among the most vulnerable in the labour market, almost 1.6 billion informal economy workers are significantly
impacted by the lockdown measures
Impact on academic institutions:
Academic institutions have observed major disruptions similar to disruptions in other major industries. Most
institutions have resorted to moving classes online and cancelling in-person classes. Transitioning to online
classes brought many logistical problems. Results from a survey showed that almost 10% of institutions do not
have the facilities and infrastructures in place to conduct online classes in poor countries.
Furthermore, the majority of the institutions have indicated a significant impact on enrolment of both new
international and local students, with negative financial consequences .

In this book a highly distinguished international
economist scrupulously explains how
globalization works as a concept and how it
operates in reality.
Martin Wolf begins by outlining the history of
the global economy in the twentieth century
and explaining the mechanics of world trade.
He dissects the agenda of globalization’s critics,
and rebuts the arguments that it undermines
sovereignty, weakens democracy, intensifies
inequality, privileges the multinational
corporation, and devastates the environment.
The author persuasively defends the principles
of international economic integration, arguing
that the biggest obstacle to global economic
progress has been the failure not of the market
but of politics and government, in rich
countries as well as poor.

Conclusion
◦ As globalization has progressed, living conditions (particularly when measured by broader indicators
of well being) have improved significantly in virtually all countries. However, the strongest gains
have been made by the advanced countries and only some of the developing countries.
◦ That the income gap between high-income and low-income countries has grown wider is a matter
for concern. And the number of the world’s citizens in abject poverty is deeply disturbing. But it is
wrong to jump to the conclusion that globalization has caused the divergence, or that nothing can
be done to improve the situation. To the contrary: low-income countries have not been able to
integrate with the global economy as quickly as others
◦ No country, least of all the poorest, can afford to remain isolated from the world economy. Every
country should seek to reduce poverty. The international community should endeavour by
strengthening the international financial system, through trade, and through aid to help the poorest
countries integrate into the world economy, grow more rapidly, and reduce poverty. That is the way
to ensure all people in all countries have access to the benefits of globalization

Bibliography
◦ Forbes.com
◦ Weforum.org
◦ Youbetterworld.com
◦ Nationalgeographic.org
◦ Imf.org
◦ Ncert book
◦ Why Globalization works by Martin Wolf.

Globalisation

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