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Email this citationCIAO DATE: 07/05
Emerging Trends in India's Foreign Trade Under the Globalised Regime
Dr. Irfan Ahmad
May 2005
Abstract
According to IMF, 'Globalisation may be defined as the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and of capital inflow and also through the more rapid and wide spread diffusion of technology'. The world economy has been emerging as a global or transnational economy. A global economy is one which transcends the national borders unhindered by artificial restrictions like government restrictions on trade and factor movements. Globalisation is a process of development of the world into a single integrated economic unit. This process is a move towards a borderless regime of free trade based on competition. The globalisation has four parameters, that is, (i) Reduction of trade barriers so as to permit free flow of goods and services across national frontiers. (ii) Creation of an environment in which free flow of capital can take place. (iii) Creation of environment, permitting free flow of technology, and (iv) Creation of an environment in which free movement of labour can take place in different countries of the world.
Today, globalisation is characterized by new emerging markets, new technologies, new rules and norms. It is a way of corporate life necessitated, facilitated and nourished by the transnationalisation of the world economy and developed by corporate strategies. Globalisation is a new mind set and value system which has integrated the entire world as a single market. It does not differentiate between domestic market and foreign market. There is nothing like a home market and international market but there is only one market, i.e., the global market. To become globally competitive, the Indian industries have to face the challenges posed by globalisation such as improvement in quality, technology, brand marketing, multinational corporations, inventory management, resource utilization, finance mix, foreign collaborations and exports, fuller capacity utilization of human resource. The Indian industry has to concentrate on cost and quality.
