Impact of Globalisation

International flows are expected to resume as the COVID- 19 outbreak unfolds, according to current projections. While many global trade indices have reached a low point in 2020, CEOs are uncovering hints about the future of globalization and its possible consequences on their businesses by concentrating on a few important drivers.

These are some of them:

Growth In Global Patterns - With large economic cycles, international flows often fluctuate surprisingly. Once the pandemic is under control, true growth can be resumed.

• Supply Chain Policies - Changes in supply chain policies can reorganize trade, although they are currently more focused on job losses than shortages.

• Conflict of Power and Weakness - The driver had already halted international trade prior to the pandemic. COVID-19, on the other hand, has introduced a few extra layers of complexity. There has been a substantial increase in governmental power, necessitating a competition for ideas. This could result in regional divides, but no such divisions have been established.

• Technological Advancements - COVID-19 is significantly influenced by technological change, such as the introduction of e-commerce, videoconferencing, and the usage of artificial intelligence. Many leaders were focused on how technology may help minimize global warming prior to the epidemic. Organizations are now evaluating how technological changes will affect their position in relation to competitors, customers, suppliers, and other stakeholders.

• Popular Public Opinion - The epidemic that is reversing high support for trade and migration may have a negative impact on public perceptions of globalization. For the most part, international travel hastens the spread of contagious diseases, and economic stress may exacerbate trade security concerns.

The epidemic is a globalization problem that is "bending but indestructible," but it will continue to bring economic opportunities and problems.

It must be recognised as one of the future drivers of globalization so that businesses can navigate and reap the rewards of this crisis.

The potential for developing global strategy is now huge, albeit complex, in a world of interconnected economies. Now is the perfect time for global enterprises to demonstrate their value to the world by utilizing the world's best forces to end the epidemic and accelerate recovery.

A brief on Globalisation

From ancient times, humans have looked for places to settle, produce and exchange goods which have continuously improved with technology and transportation. In the 19th century, global interaction between countries started developing in Europe.

The first wave of globalisation was the building of steamships, railroads and telegraphs. Another aspect of globalisation was the increased economic cooperation between the countries. However, after World War I, The Great Depression and World II, the new monetary policy of the nations was protectionism. 

In the 1940s, the United States started the efforts of reviving international trade and investment. This happened with the help of negotiation of ground rules by nations, which led to the second wave of globalisation which is still ongoing. 

Globalisation is known by other names too. Some of the globalisation synonyms are proliferation, development, and growth. The effects of globalisation have been immense on the world economy. 

Globalisation as a process has made countries significantly succeed after its initiation and implementation. There was the overall growth of the countries in aspects like foreign investment in all the sectors of the economy. It was a contribution that helped in the development of the economy of a nation. 

The policy of globalisation was introduced in India in 1991 along with liberation and privatisation. Its impact on the Indian economy has been massive. Globalisation and the Indian economy have become interrelated as they are directly related. It has helped in the creation of jobs, attract foreign investment and generate income in the economy. Along with the economic impact of globalisation, it has impacted the culture of the country too. 

India is one of the greatest examples of globalisation, where even 25 years ago, one couldn't dream of buying such a thing as Levi's jeans or a colour television in the country itself. All our parents have told us stories about how they would ask for these goods when someone they knew, or someone that someone else knew, was going abroad. With globalisation, all we need to do is step out of our houses and enter the market, and everything we could ever want is right there, and all we need is the money to buy it. 

Advantages of Globalisation

Globalisation is a process that has several advantages. It is a process that contributes significantly to the development and growth of a nation. Here are some of the benefits of globalisation: 

• Employment: The establishment of special economic zones has increased the number of jobs available. There are export processing units established all over the world, which have helped employ thousands of people. The multinational companies of the west have been providing employment opportunities to the people by outsourcing employees.

• Compensation: There has been an increase in the level and amount of payment compared to the domestic companies. The main reason for this is that domestic or home companies lack skill and knowledge compared to multinational companies. An increase in compensation is leading to changes in the management structure of the companies too. 

• Standard of Living: With the emergence of globalisation, there has been a change in people's standard of living. The difference in the purchasing behaviour of people has increased the standards of living of people. Therefore, the evolution and development of business have raised the standards of living of people. 

• Increased Investment: Globalisation has led to an increase in cross-border investments. This has led to companies investing and opening branches in different countries across the globe. The increase in investment across the borders has enhanced the welfare of both countries. 

• Development of Infrastructure: Technological advancement has helped improve the infrastructure of countries. With the help of technology, the countries are achieving overall development. 

• Foreign Exchange Reserves: With the help of globalisation, there is a constant flow of capital in the international financial flows. This capital flow helps countries build foreign exchange reserves.

Types of Globalisations

Globalisation is mainly divided into three different kinds. The three types of globalisations that influence one and another in their work. They work in interdependence with each other.

The Three Types of Globalisation are: 

• Economic Globalisation: In this type of globalisation, countries aim to integrate international financial markets and coordinate monetary exchange. Multinational corporations that operate in more than two countries play an essential role in a nation's economic globalisation. Economic globalisation is the North American Free Trade Agreement or NAFTA, an economic agreement between the United States, Canada and Mexico. 

• Political Globalisation: This is globalisation that refers to a nation's policies that aim at bringing it closer to other nations politically and economically. Political globalisation helps build a bond between countries with each other. Some examples of political globalisation are North Atlantic Trade Organisation (NATO) and United Nations (UN). 

• Cultural Globalisation: In this type of globalisation, the focus is on the technological and societal factors which bring people together. Cultural globalisation includes ease of communication, social media and access to faster and better transportation.

Impact of Globalisation

There has been a tremendous impact of globalisation on everyone - people, communities and institutions. Everyone locally and globally has felt the touch of globalisation not only in their lives but in society too. There are myriad ways in which one may feel the impact of globalisation on one's life. 

Individuals get impacted by globalisation regularly, in the clothes they wear, the music they listen to, the gadgets they use, the cars they drive, and so much more. Several international influences affect the ordinary lives of people in such little ways that it is hard to render anymore. It moves what they like to purchase, eat and it also affects the standard of living overall. Additionally, it affects their decisions like where to travel and how to travel, whether you're talking about intercity, interstate or even international travel. Globalisation has made everything in all of our lives so much easier than it was even a few years ago.

Another group where there's an impact of globalisation are communities. There's a significant impact of globalisation on the communities locally, regionally and internationally. It includes the effects of globalisation on organisations, businesses and economies. The variety of products available today is countless and even unbelievable to an extent. This creates a vast marketplace for both sellers and consumers, and this is how globalisation plays a vital role in expanding the economy.

Globalisation affects people who are a part of the community in every aspect, like where they work, who they work for and moving around the world. It changes the way local cultures develop all around the world.

What we must remember is that globalisation is not only concrete, meaning that it does not only affect the circulation of goods and services floating in the economy and being made available to consumers. There is such a thing as globalisation of the intellect, where progressive values often deemed 'Western' values are also exchanged. This, in fact, works both ways, where we see traditional and backward values be replaced with more progressive ones as the world progresses further. On the other hand, several Western cultures are also becoming more and more affiliated with those of the East, such as in matters of sustainability and sustainable practises of olden Eastern times.

Importance of Globalisation 

Globalisation has been one of the long-standing trends which are constantly in the process of changing and evolving. Like everything else, there are positives as well as negatives of globalisation. Both these factors can't stop the progress of globalisation which is taking the world by storm. 

It's changing the way nations, businesses and people interact with each other. Globalisation brings people across the countries together to trade, share their cultures and depend on each other for sustenance. 

The reason why globalisation and discussions around it have taken centre stage in recent years, especially since 1991 in India, is because the world is becoming a lot more dependent on global cooperation as a whole. There are several impending crises that are taking place across the world, ranging from political to environmental to diplomatic, and fighting this requires a kind of global cooperation that only comes from global interconnectedness, i.e. globalisation.

We must not only look at globalisation as a result of our wants and needs spreading globally, especially because of the fear of missing out, but also in the light that worldly togetherness is becoming the norm. It is regular to see Indians spread across the world, looking for better opportunities and better lives, and this is the pull factor of globalisation. It is important because it keeps hopes alive by showing us what can be rather than having us stick only to what is.

Conclusion

The policy of globalisation is bringing the world closer to each other. Globalisation has impacted every aspect of a person’s life, right from the phones they use to the clothes they buy. While there are many advantages of globalisation, there are a few drawbacks too. One of the drawbacks is that the process of globalisation has impacted the environment negatively and didn’t stabilise the global economy.