What is Globalization?
After going through Economic reforms, and it’s two main elements that are Liberalization and, Privatization now is the time to discuss the third and final element of New Economic Policy which is Globalization. I will try my best to use as simple language as possible to make the concept easy to understand. Okay, let’s learn.
Meaning of Globalization
- Globalization is a complicated process that tries to establish connections among different countries in such a way that the happenings in one country can influence the events and happenings of the other countries. It makes the whole world borderless. Take the example of Covid-19, it started in China and now it has spread all over the world. One of the reasons for this is perhaps; globalization.
- Globalization is the result of the policies of liberalization and privatization that are aimed at transforming the world towards greater interdependence and integration.
Outcome of Globalization
- Outsourcing is one of the most crucial outcome(result) of the globalization process, under this, a company hires regular service from external sources or from other countries, rather than providing the same service internally or from within the country.
- Outsourcing is growing currently because of the growth of communication, specifically with the growth of IT(Information Technology) sectors.
Reason for Outsourcing
- Most MNCs (Multinational companies) are outsourcing their services to India because India provides cheap labor. It includes the services of B.P.O.(Business Process Outsourcing), record keeping, teaching, etc. Note: India has become a destination for global outsourcing after the economic reforms introduced in India.
Check out the below slideshow for more details: