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How far globalisation is helpful for developed countries and harmful for underdeveloped countries?
Globalization means that various economies of the world move in a manner that leads to emergence of well integrated and cohesive global economy. MNCs have contributed greatly in the process of globalization.

a) By setting up production centers in various countries.

b) By supplying produced goods services and technology. The countries of the world have come closer. It has also increased the movement of people between countries.
Advantages.

a. Increase in the volume of trade in goods and services.

b. Inflow of private foreign capital and export orientation of the economy.

c. Helps in development and strengthening of domestic economics of India.

d. Improved productive efficiency and healthy competition.

e. Increased volume of output income and employment.
Globalisation is the new buzzword that has come to dominate the world since the nineties of the last century with the end of the cold war and the break-up of the former Soviet Union and the global trend towards the rolling ball. The frontiers of the state with increased reliance on the market economy and renewed faith in the private capital and resources, a process of structural adjustment spurred by the studies and influences of the World Bank and other International organisations have started in many of the developing countries. Also Globalisation has brought in new opportunities to developing countries. Greater access to developed country markets and technology transfer hold out promise improved productivity and higher living standard. But globalisation has also thrown up new challenges like growing inequality across and within nations, volatility in financial market and environmental deteriorations. Another negative aspect of globalisation is that a great majority of developing countries remain removed from the process. Till the nineties the process of globalisation of the Indian economy was constrained by the barriers to trade and investment liberalisation of trade, investment and financial flows initiated in the nineties has progressively lowered the barriers to competition and hastened the pace of globalisation.


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