Under globalisation, localities being connected with the world by breaking national boundaries; forging of links between one society and another and between one country and another through international transmission of knowledge, technology, ideas, information, literature and culture.
Globalisation makes way for establishing ‘borderless globe’, the ideal of which was articulated by Kemichi Ohmae.
This would result trickle-down effect to reduce the proportion of population living below the poverty line.
(viii) Globalisation enhances the efficiency of the banking insurance and financial sectors with the opening up to those areas to foreign capital, foreign banks and insurance companies. Following are some of these disadvantages: (i) Globalisation paves the way for redistribution of economic power at the world level leading to domination by economically powerful nations over the poor nations.
It also leads to creation of a new world order with no national boundaries. Economically, it simply means opening up of national market, free trade and commerce among nations, free flow of labour, capital and technology, and integration of national economies with the world economy.
Politically, it means limited powers and functions of state, more rights and freedoms granted to the individual and empowerment of the private sector culturally it means exchange of cultural values between societies and between nations; and ideologically, it means the promotion and spread of liberalism and capitalism. They do not want to include the free flow labour within the parameter of globalisation set by them. Too many have no voice in its design and no influence on its course.” “We wish to make globalisation a means to expand human well being and freedom, and to bring democracy and development to local communities where people live.” But the advocates of the policy of globalisation argue that globalisation would help the underdeveloped, and developing countries to improve their competitive strength and attain higher growth rates. However, the advocates of globalisation, especially from the developed countries purposely limit the definition of globalisation to only three components, i.e., unrestricted trade flows, capital flows and technology flows.It is the developing countries which needs to be adapted with the changing situations and to accept those new ideas for attaining higher level of socio-economic development.The above characteristics of globalisation simply suggests that there is a great need for global integration under the present global economic scenario.All these have resulted in open access to new markets and new technology for the country.Main features of globalisation are as follows: Globalisation makes way for the freedom of the industrialist/businessman to establish industry, trade or commerce either in his country or abroad; free exchange of capital goods, service and technologies between countries.(ii) Globalisation paves the way for removing inefficiency in production system.Prolonged protective scenario in the absence of globalisation makes the production system careless about cost effectiveness which can be attained by following the policy of globalisation.In view of the current global recession and financial crisis, there is a paramount importance of global integration.(i) Globalisation helps to boost the long run average growth rate of the economy of the country through: (a) Improvement in the allocative efficiency of resources; (b) Increase in labour productivity; and (c) Reduction in capital-output ratio.