Globalization Impact on the Indian Economy

It might seem to be the globalising age where B 2 B approach is much simpler and is much wider in its application then what it used to be a decade ago. It is very easy now to browse for the product, check its authenticity, read comments or testimonials for it and order, you don’t even have to change your posture and can buy the costliest of the things from far flung areas of the world. In single word the whole process is the framework of Globalisation.

But what do we understand of Globalisation? Wikipedia explains it as:-Globalisation means an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and trade. But in economic terms we describe it as conjunction of various economies working together for what we call now is World Economy. It is in fact a tool for a country that is producing goods in surplus to distribute with bare minimum of logistic cost and marketing cost to a country which has a progressive buyer and has dearth of particular goods.

Now Globalisation has many meaning and many types or rather channels.The most primary one is:

Company To Company: – The trade between companies involved in making precision components or geographically specific product to companies who deal in either higher assembly or marketing of the products. For example a car company wants to manufacture a high end model of a Sedan,  going for an Italian component manufacture to vendor him out for some specialised product, in doing this the quality and authenticity of the product increases at the manufacturer’s end and customer’s end simultaneously.

Another channel of globalisation is Company To Buyer: – In which through direct sales outlets and direct sales channels company get direct access to the buyer. This channel in offshore sales is further facilitated by the presence of a phenomenon called online trading.

The last or the most vulnerable channel has been the Buyer To Buyer:- Now the one segment that has come up is this past decade. As we speak some of you must be browsing the EBay and must be checking out some of the products listed by sellers, now sellers here are not manufacturers particularly, but they are the buyers themselves.

Globalisation has been the very essence of the world market’s trends these days. Since each and every economy of the free world is in some way linked to each and every other economy there have been times when many bulls have collided with each other horns in horns. Saying that we represent the global economy and the open door policy is one thing but judging its repercussions is all together different.

With the certain prosperity and the distribution of profits reaching to common man it has brought us with the dead lock too. The dead lock that if one falls, the whole boat will sink with it too. Dependent economies on larger economies have already either faced or are still facing the fall. The most wide spread and the most devastating down turn has been just witnessed by the world. What went wrong? Everyone was producing surplus and it was being consumed with a very fast rate too.

Looking at the way the post recession recovery work is going I still wonder whether the bull will run as it used to in the past or rather it has changed its characteristics and have adopted a more subtle and slow but steady philosophy for the consolidation.

Umang Shankar

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