Globalization

               GLOBALIZATION 

INTRODUCTION: 

          This  is about globalization,its definition and its impact. The practices and organization's formed due to globalization.WTO and GATT and how they changed the Overall world economy and business practices. The impact of FDI and FII on Indian businesses and economy. The MNCs is shaping the economies and how it has helped the Indian economy.

•  Globalization
• WTO
• GATT
• FDI and  FII
• Foreign exchange  management  act,1999(FEMA)

GLOBALIZATION

            It  refer  to  the  increasing  global  relationship  of  culture,  people,  and  economic  activity.  It  is  generally  used  to   refer   to  economic  globalization. 

            Globalization is the name for the process of increasing the connectivity and interdependence of the world's markets and businesses. This process has speeded un dramatically in the last two decades as technological advances make it easier for people to travel, communicate, and do business internationally. Two major recent driving forces are advances in telecommunications infrastructure and the rise of the internet. In general, as economies become more connected to other economies, they have increased opportunity but also increased competition. Thus, as globalization becomes a more and more common feature of world economics, powerful pro-globalization and anti-globalization lobbies have arisen. The pro-globalization lobby argues that globalization competition is a good thing since it makes agents of production more efficient.

WTO 

• Word   trade  organization  
• Before to  GATT(general  agreement  of  tariff  and  trade) was established in 1948  with  223  countries  as the  global  trade  organization  to  administer  all  international  trade  agreement  by  providing  equal  opportunities  to  all  the  countries  in international  market.    
• This is a third important side to the WTO work.Trade relations often involve conflicting interests. Agreements, including those painstakingly negotiated in the WTO system, often need interpreting. The most harmonious way to settle these differences is through some neutral procedure based on an agreed legal foundation. That is the purpose behind the dispute settlement process written into the WTO agreements.

GATT 

• General  agreement  on  tariffs  and  trade  was  establish  of  1948  with   23   global  organization  trade.  
• The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement regulating international trade. According to its preamble, its purpose was the "substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis." It was negotiated during the United Nations Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization.

 FDI  and  FII 

                        FDI  

• Foreign  direct  investment
• Investment  in  Indian  companies
• Management  control  is  there
• Long  term  investment 
• Any  investment  above  10% in an  Indian  company  called  as FDI

                          FII 

• Foreign  institution  investor
• Investment  in  secondary  market  depending  upon market  condition
• Motive  is profit
• Short  long  term  investment
• Any investment  below  1o% in an  Indian  company  called  as FII 

Foreign  exchange  management  act,1999(FEMA) 

• The  foreign  exchange  regulation  act  1973  amended  by  the  foreign  exchange  management  act ,1999  forms  the  statutory  basis  for  exchange  control  in India.
•  consolidate  and  amend  the  law  relating  to  foreign  exchange
• Facilitating  external  trade  and  payment 
• Promoting  the  orderly  development  and  maintenance  of  foreign  exchange  market  in  India