More Globalzation vs Better Globalization
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MORE GLOBALIZATION VS. BETTER
GLOBALIZATION
INTRODUCTION:
Globalization is the process of international integration arising from the interchange of world
views, products, ideas and mutual sharing, and other aspects of culture. Advances
in transportation, such as the steam locomotive, steamship, jet engine, container ships, and
in telecommunications infrastructure, including the rise of the telegraph and its modernoffspring, the Internet, and mobile phones, have been major factors in globalization, generating
further interdependence of economic and cultural activities. Though scholars place the origins
of globalization in modern times, others trace its history long before the uropean Age of
!iscovery and voyages to the "ew #orld. $ome even trace the origins to the third millennium
%&. 'arge(scale globalization began in the )*th century. In the late )*th century and early
+th century, the connectivity of the world-s economies and cultures grew very uic/ly.
The concept of globalization is a very recent term, only establishing its current meaning in the
)*0s, which -emerged from the intersection of four interrelated sets of 1communities of
practice1: academics, journalists, publishers2editors, and librarians. In +, the International
3onetary 4und 5I346 identified four basic aspects of
globalization: trade and transactions, capital and investment movements, migration and
movement of people, and the dissemination of /nowledge. 4urther, environmental challenges
such as global warming, cross(boundary water and air pollution, and over(fishing of the ocean
are lin/ed with globalization. Globalizing processes affect and are affected
by business and wor/ organization, economics, socio(cultural resources, and the natural
environment.
Globalisation is the new buzzword that has come to dominate the world since the nineties of
the last century with the end of the cold war and the brea/(up of the former $oviet 7nion and
the global trend towards the rolling ball. The frontiers of the state with increased reliance on
the mar/et economy and renewed faith in the private capital and resources, a process of
structural adjustment spurred by the studies and influences of the #orld %an/ and other
https://en.wikipedia.org/wiki/World_viewhttps://en.wikipedia.org/wiki/World_viewhttps://en.wikipedia.org/wiki/Culturehttps://en.wikipedia.org/wiki/Culturehttps://en.wikipedia.org/wiki/Transportationhttps://en.wikipedia.org/wiki/Transportationhttps://en.wikipedia.org/wiki/Steam_locomotivehttps://en.wikipedia.org/wiki/Steam_locomotivehttps://en.wikipedia.org/wiki/Steamshiphttps://en.wikipedia.org/wiki/Jet_enginehttps://en.wikipedia.org/wiki/Container_shiphttps://en.wikipedia.org/wiki/Telecommunicationhttps://en.wikipedia.org/wiki/Telecommunicationhttps://en.wikipedia.org/wiki/Telegraphhttps://en.wikipedia.org/wiki/Internethttps://en.wikipedia.org/wiki/Mobile_phonehttps://en.wikipedia.org/wiki/Mobile_phonehttps://en.wikipedia.org/wiki/Interdependencehttps://en.wikipedia.org/wiki/Interdependencehttps://en.wikipedia.org/wiki/Modernityhttps://en.wikipedia.org/wiki/Age_of_Discoveryhttps://en.wikipedia.org/wiki/Age_of_Discoveryhttps://en.wikipedia.org/wiki/Age_of_Discoveryhttps://en.wikipedia.org/wiki/New_Worldhttps://en.wikipedia.org/wiki/New_Worldhttps://en.wikipedia.org/wiki/Economieshttps://en.wikipedia.org/wiki/Economieshttps://en.wikipedia.org/wiki/Culturehttps://en.wikipedia.org/wiki/International_Monetary_Fundhttps://en.wikipedia.org/wiki/International_Monetary_Fundhttps://en.wikipedia.org/wiki/Tradehttps://en.wikipedia.org/wiki/Financial_transactionhttps://en.wikipedia.org/wiki/Financial_transactionhttps://en.wikipedia.org/wiki/Capital_(economics)https://en.wikipedia.org/wiki/Investmenthttps://en.wikipedia.org/wiki/Human_migrationhttps://en.wikipedia.org/wiki/Knowledgehttps://en.wikipedia.org/wiki/Global_warminghttps://en.wikipedia.org/wiki/Water_pollutionhttps://en.wikipedia.org/wiki/Water_pollutionhttps://en.wikipedia.org/wiki/Air_pollutionhttps://en.wikipedia.org/wiki/Air_pollutionhttps://en.wikipedia.org/wiki/Over-fishinghttps://en.wikipedia.org/wiki/Businesshttps://en.wikipedia.org/wiki/Labor_(economics)https://en.wikipedia.org/wiki/Economicshttps://en.wikipedia.org/wiki/Economicshttps://en.wikipedia.org/wiki/Societyhttps://en.wikipedia.org/wiki/Culturalhttps://en.wikipedia.org/wiki/Natural_environmenthttps://en.wikipedia.org/wiki/Natural_environmenthttps://en.wikipedia.org/wiki/Natural_environmenthttps://en.wikipedia.org/wiki/Culturehttps://en.wikipedia.org/wiki/Transportationhttps://en.wikipedia.org/wiki/Steam_locomotivehttps://en.wikipedia.org/wiki/Steamshiphttps://en.wikipedia.org/wiki/Jet_enginehttps://en.wikipedia.org/wiki/Container_shiphttps://en.wikipedia.org/wiki/Telecommunicationhttps://en.wikipedia.org/wiki/Telegraphhttps://en.wikipedia.org/wiki/Internethttps://en.wikipedia.org/wiki/Mobile_phonehttps://en.wikipedia.org/wiki/Interdependencehttps://en.wikipedia.org/wiki/Modernityhttps://en.wikipedia.org/wiki/Age_of_Discoveryhttps://en.wikipedia.org/wiki/Age_of_Discoveryhttps://en.wikipedia.org/wiki/New_Worldhttps://en.wikipedia.org/wiki/Economieshttps://en.wikipedia.org/wiki/Culturehttps://en.wikipedia.org/wiki/International_Monetary_Fundhttps://en.wikipedia.org/wiki/International_Monetary_Fundhttps://en.wikipedia.org/wiki/Tradehttps://en.wikipedia.org/wiki/Financial_transactionhttps://en.wikipedia.org/wiki/Capital_(economics)https://en.wikipedia.org/wiki/Investmenthttps://en.wikipedia.org/wiki/Human_migrationhttps://en.wikipedia.org/wiki/Knowledgehttps://en.wikipedia.org/wiki/Global_warminghttps://en.wikipedia.org/wiki/Water_pollutionhttps://en.wikipedia.org/wiki/Air_pollutionhttps://en.wikipedia.org/wiki/Over-fishinghttps://en.wikipedia.org/wiki/Businesshttps://en.wikipedia.org/wiki/Labor_(economics)https://en.wikipedia.org/wiki/Economicshttps://en.wikipedia.org/wiki/Societyhttps://en.wikipedia.org/wiki/Culturalhttps://en.wikipedia.org/wiki/Natural_environmenthttps://en.wikipedia.org/wiki/Natural_environmenthttps://en.wikipedia.org/wiki/World_viewhttps://en.wikipedia.org/wiki/World_view
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International organisations have started in many of the developing countries. Also
Globalisation has brought in new opportunities to developing countries. Greater access to
developed country mar/ets and technology transfer hold out promise improved productivity
and higher living standard. %ut globalisation has also thrown up new challenges li/e growing
ineuality across and within nations, volatility in financial mar/et and environmental
deteriorations. Another negative aspect of globalisation is that a great majority of developing
countries remain removed from the process. Till the nineties the process of globalisation of the
Indian economy was constrained by the barriers to trade and investment liberalisation of trade,
investment and financial flows initiated in the nineties has progressively lowered the barriers to
competition and hastened the pace of globalisation.
8ositives 9f Globalization
• !ue to increased globalization in developed countries, there is more scope for
developing countries to benefit from it. This way they can lead themselves towards
economic success and ultimately achieve better standard of living as well.
• Globalization also boosts the ongoing competition between countries all over the world
as well as within any particular country hence ma/ing sure that prices of commodities
are lowered to a considerable e;tent. This is a great chance for all end( users to procure
goods at low rates.
• Than/s to the reach and influence of media these days, increased media coverage helps
in drawing attention towards those parts of the world where human rights are violated
for the benefit of the rich and powerful. This leads to improvement in human rights.
• #hen globalization ta/es place across a nation, it gets wider worldly e;posure in the
form of food, movies, art, music, clothing, culture, etc. This is a great way of forming
closer bonds with the rest of the world.
• Globalization in one country2 community leads to a sense of competition in others
hence helping in /eeping the prices of commodities under chec/ during all times.
• All developing countries can benefit from the already e;isting technologies without the
need to undergo the stress of developing any particular technology.
• Globalization helps in bringing different governments together so that they can wor/
together towards achieving common goals which is a great way of spreading global
awareness regarding common concerns and issues.
"egatives 9f Globalization
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• The most common drawbac/ of globalization is that it is widening the gap between the
rich and poor where rich people are becoming richer and poor are becoming poorer.
• As a result of outsourcing, globalization may deprive an entire country of its jobs and
resources. This is because globalization ta/es jobs away from one country and provides
it to another country hence leaving lots of people without the opportunities that they
deserve.
• Although people belonging to different cultures and countries get a chance to interact
with each other, it causes a loss in tradition and values.
• As species are deprived of their non( native ecosystems, there are increased chances of
them spreading diseases and disrupting other natural ecosystems and their native
species. It is very important to stri/e balance between the positives and negatives of
globalization so that balance can be restored in nature
ECONOMIC GLOBALIZATION
conomic globalization is the increasing economic interdependence of national economies
across the world through a rapid increase in cross(border movement of goods, service,
technology and capital. #hereas the globalization of business is centered around the
diminution of international trade regulations as well as tariffs, ta;es, and other impediments
that suppresses global trade, economic globalization is the process of increasing economic
integration between countries, leading to the emergence of a global mar/etplace or a single
world mar/et. !epending on the paradigm, economic globalization can be viewed as either a
positive or a negative phenomenon. conomic globalization comprises the globalization
of production, mar/ets, competition, technology, and corporations and industries. &urrent
globalization trends can be largely accounted for by developed economiesintegrating with less
developed economies by means of foreign direct investment, the reduction of trade barriers as
well as other economic reforms and, in many cases, immigration.
In )*
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MORE GLOBALIZATION VERSES BETTER
GLOBALZATION
Economic globalization
conomic globalization echoes the views of neoliberal and neoclassicist thin/ers in which
states lose prominence and the world becomes a single global mar/et of individual consumers.
These consumers are characterized by their material and economic self(interest = rather than
cultural, civic or other forms of identity. The e;pansion and dominance of global companies
and brands is another /ey feature. These corporations contribute to deepen global
interconnectedness not only by uniformly shaping consumption patterns across societies, but
by binding economies together through comple; supply chains, trade networ/s, flows of capital
and manpower 5migration6.
8ros of economic globalization:
• &heaper prices for products and services 5more optimized supply chains6
• %etter availability of products and services
• asier access to capitals and commodities
• Increased competition
• 8roducers and retailers can diversify their mar/ets and contribute to economic growth
&ons of economic globalization:
•
$ome countries struggle to compete
http://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Neoliberalismhttp://en.wikipedia.org/wiki/Neoclassical_economicshttps://netivist.org/debate/ttp-pros-and-cons-is-the-trans-pacific-partnership-a-good-dealhttps://netivist.org/debate/ttp-pros-and-cons-is-the-trans-pacific-partnership-a-good-dealhttps://netivist.org/debate/illegal-immigration-pros-and-conshttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Neoliberalismhttp://en.wikipedia.org/wiki/Neoclassical_economicshttps://netivist.org/debate/ttp-pros-and-cons-is-the-trans-pacific-partnership-a-good-dealhttps://netivist.org/debate/illegal-immigration-pros-and-cons
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• ;tractive behavior of some foreign companies and investors
• $trong bargaining power of multinational companies vis(>(vis local governments
• ?&ontagion effect@ is most li/ely in times of crises
• 8roblems of ?social dumping@
Cultual globalization
It refers to the process of transmission of values, ideas, cultural and artistic e;pressions. In
the era of the Internet and fast communications people can interact more easily with each
other. 3ulticulturalism and cosmopolitanism are to some e;tent manifestations of cultural
globalization. &ommunities are less insulated than ever in history, even those who cannot
travel can have today a good understanding of other cultures and meet virtually people
from other parts of the world. 8eople change their views and lifestyle influence by global
cultural and consumption trends.
8ros of cultural globalization:
• Access to new cultural products 5art, entertainment, education6
• %etter understanding of foreign values and attitudes. 'ess stereotypes and
misconceptions about other people and cultures
• &apacity to communicate and defend ones values and ideals globally
• Instant access to information from anywhere in the world
• &ustomisation or adaptation of global cultural trends to local environment
5?mestisage@6
&ons of cultural globalization:
• !angers of cultural homogenization
• #esternization, cultural imperialism or cultural colonialism
• $ome small cultures may lose their distinct features
https://netivist.org/debate/financial-transactions-with-tax-havenshttps://netivist.org/debate/financial-transactions-with-tax-havenshttps://netivist.org/debate/on-child-labour-are-we-hypocritehttps://netivist.org/debate/multiculturalism-in-south-korea-and-japanhttps://netivist.org/debate/financial-transactions-with-tax-havenshttps://netivist.org/debate/on-child-labour-are-we-hypocritehttps://netivist.org/debate/multiculturalism-in-south-korea-and-japan
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• !angerous or violent ideals can also spread faster
• $pread of commodity(based consumer culture
!olitical globalization
The political dimension is a newer feature of the globalization debate, as over the last B
years there has been a rise in the influence and power of international and regional
institutions such as the uropean 7nion 576, 9rganization for conomic &ooperation and
!evelopment 59&!6, the 7nited "ations 57"6, the #orld Trade 9rganization 5#T96,
3C&9$7C in $outh America, and the Association for $outheast Asian "ations
5A$A"6. The international and supranational actors increasingly shape domestic politics.
8ros of political globalization:
• Access to international aid and support
• It contributes to world peace. It reduces ris/ of invasions, more chec/s to big powers
and limitation to nationalism.
• $maller countries can wor/ together and gain more influence internationally
• International organizations are often committed to spread values li/e freedom and to
fight abuses within countries
• Governments can learn from each other
&ons of political globalization:
• $tate sovereignty is reduced
• The functioning of international and supranational organizations is often not
?democratic@ in terms of representation and accountability.
• %ig countries can shape decisions in supranational organizations
• $ometimes countries can veto decisions and slow down decision ma/ing processes
https://netivist.org/debate/should-the-ep-be-strengthenedhttps://netivist.org/debate/is-world-peace-possiblehttps://netivist.org/debate/is-nationalism-a-logical-reaction-to-globalizationhttps://netivist.org/debate/is-nationalism-a-logical-reaction-to-globalizationhttps://netivist.org/debate/diplomatic-immunity-for-international-organizationshttps://netivist.org/debate/should-the-ep-be-strengthenedhttps://netivist.org/debate/is-world-peace-possiblehttps://netivist.org/debate/is-nationalism-a-logical-reaction-to-globalizationhttps://netivist.org/debate/diplomatic-immunity-for-international-organizations
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• &oordination is difficult and e;pensive
REASONS "OR MORE GLOBALIZATION#
Globalization seems to be loo/ed on as an unmitigated ?good@ by economists. 7nfortunately,
economists seem to be guided by their badly flawed models they miss realworld problems. In
particular, they miss the point that the world is finite. #e dont have infinite resources, or
unlimited ability to handle e;cess pollution. $o we are setting up a ?solution@ that is at best
temporary. conomists also tend to loo/ at results too narrowly=from the point of view of a
business that can e;pand, or a wor/er who has plenty of money, even though these users are
not typical. In real life, the business are facing increased competition, and the wor/er may be
laid off because of greater competition. The following is a list of reasons why globalization is
not living up to what was promised, and is, in fact, a very major problem.
Globalization inc$a%$% &ol' cabon 'io(i'$ $mi%%ion%
If the world burns its coal more uic/ly, and does not cut bac/ on other fossil fuel use, carbon
dio;ide emissions increase.
Globalization ma)$% it *ituall+ im,o%%ibl$ -o $gulato% in on$
count+ to -o$%$$ t$ &ol'&i'$ im,lication% o- t$i action%.
Actions which would seem to reduce emissions for an individual country may indirectly
encourage world trade, ramp up manufacturing in coalproducing areas, and increase emissions
over all.
Globalization act% to inc$a%$ &ol' oil ,ic$%.
Capidly rising world demand, together with oil supply which is barely rising, pushes world
prices upward. This time, there also is no possibility of a dip in world oil demand of the type
that occurred in the early )*Ds. ven if the #est drops its oil consumption greatly, the asthas sufficient pentup demand that it will ma/e use of any oil that is made available to the
mar/et. Adding to our problem is the fact that we have already e;tracted most of the
ine;pensive to e;tract oil because the ?easy@ 5and cheap6 to e;tract oil was e;tracted first.
%ecause of this, oil prices cannot decrease very much, without world supply dropping off.
Instead, because of diminishing returns, needed price /eeps ratcheting upward. The new ?tight@
oil that is acting to increase 7$ supply is an e;ample of e;pensive to produce oil=it cant bring
needed price relief.
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Globalization tan%-$% con%um,tion o- limit$' oil %u,,l+ -om
'$*$lo,$' counti$% to '$*$lo,ing counti$%.
If world oil supply isnt growing by very much, and demand is growing rapidly in developing
countries, oil to meet this rising demand must come from somewhere. The way this transfer
ta/es place is through the mechanism of high oil prices. Eigh oil prices are particularly a
problem for major oil importing countries, such as the 7nited $tates, many uropean countries,
and Fapan. %ecause oil is used in growing food and for commuting, a rise in oil price tends to
lead to a cutbac/ in discretionary spending, recession, and lower oil use in these countries.
Globalization tan%-$% /ob% -om '$*$lo,$' counti$% to l$%%
'$*$lo,$' counti$%.
Globalization levels the playing field, in a way that ma/es it hard for developed countries to
compete. A country with a lower cost structure 5lower wages and benefits for wor/ers, more
ine;pensive coal in its energy mi;, and more lenient rules on pollution6 is able to out(compete a typical
9&! country.
Globalization tan%-$% in*$%tm$nt %,$n'ing -om '$*$lo,$'
counti$% to l$%% '$*$lo,$' counti$%.
If an investor has a chance to choose between a country with a competitive advantage and acountry with a competitive disadvantage, which will the investor choose A shift in investment
shouldnt be too surprising. In the 7$, domestic investment was fairly steady as a percentage of
"ational Income until the mid)*Ds .In recent years, it has dropped off and is now close to
consumption of assets 5similar to depreciation, but includes other removals from service, such
as removals because manufacturing has moved overseas6. The assets in uestion include all
types of capital assets, including government owned assets 5schools, roads6, business owned
assets 5factories, stores6, and individual homes.
Globalization t$n'% to mo*$ ta(ation a&a+ -om co,oation%0 an'
onto in'i*i'ual citiz$n%.
&orporations have the ability to move to locations where the ta; rate is lowest. Individual
citizens have much less ability to ma/e such a change. Also, with todays lac/ of jobs, each
community competes with other communities with respect to how many ta; brea/s it can give
to 8rospective employers.
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Globalization %$t% u, a cu$nc+ 1ac$ to t$ bottom02 &it $ac
count+ t+ing to g$t an $(,ot a'*antag$ b+ 'o,,ing t$ *alu$ o-
it% cu$nc+.
%ecause of the competitive nature of the world economy, each country needs to sell its goods
and services at as low a price as possible. This can be done in various ways=pay its wor/ers
lower wages allow more pollution use cheaper more polluting fuels or debase the currency
by Huantitative asing 5also /nown as ?printing money,@6 in the hope that this will produce
inflation and lower the value of the currency relative to other currencies. There is no way this
race to the bottom can end well. 8rices of imports become very high in a debased currency=
this becomes a problem. In addition, the supply of money is increasingly out of balance with
real goods and services. This produces asset bubbles, such as artificially high stoc/ mar/et prices, and artificially high bond prices5because the interest rates on bonds are so low6. These
assets bubbles lead to investment crashes. Also, if the printing ever stops 5and perhaps even if it
doesnt6, interest rates will rise, greatly raising cost to governments, corporations, and
individual citizens.
Globalization $ncouag$% '$,$n'$nc$ on ot$ counti$% -o
$%%$ntial goo'% an' %$*ic$%.
#ith globalization, goods can often be obtained cheaply from elsewhere. A country may come
to believe that there is no 8oint in producing its own food or clothing. It becomes easy to
depend on imports and specialize in something li/e financial services or highpriced medical
care=services that are not as oil dependent. As long as the system stays together, this
arrangement wor/s, more or less. Eowever, if the built instabilities in the system become too
great, and the system stops wor/ing, there is suddenly a very large problem. ven if the
dependence is not on food, but is instead on computers and replacement parts for machinery,
there can still be a big problem if imports are interrupted.
Globalization ti$% counti$% tog$t$0 %o tat i- on$ count+
colla,%$%0 t$ colla,%$ i% li)$l+ to i,,l$ toug t$ %+%t$m0 ,ulling
man+ ot$ counti$% &it it.
Eistory includes many e;amples of civilizations that started from a small base, gradually grew
to overutilize Their resource base, and then collapsed. #e are now dealing with a world
situation which is not too different. The big difference this time is that a large number of
countries is involved, and these countries are increasingly interdependent. In my post +)B:%eginning of 'ongTerm Cecession, I showed that there are significant parallels between
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financial dislocations now happening in the 7nited $tates and the types of changes which
happened in other societies, prior to collapse. 3y analysis was based on the model of collapse
developed in the boo/ $ecular &ycles by 8eter Turchin and $ergey "efedov. It is not just the
7nited $tates that is in perilous financial condition. 3any uropean countries and Fapan are in
similarly poor condition. The failure of one country has the potential to pull many others down,
and with it much of the system. The only countries that remain safe are the ones that have not
grown to depend on globalization, of which there are probably not many today=perhaps
landloc/ed countries of Africa. In the past, when one area collapsed, there was less
interdependence, so it was possible to let cropland ?rest@ and deforested areas regrow. #ith
regeneration, and perhaps new technology, it was possible for a new &ivilization to grow in the
same area later. If we are dealing with a worldwide collapse, it will be much more difficult to
follow this model.
T3E "UTURE O" GLOBALIZATION
'i/e a snowball rolling down a steep mountain, globalization seems to be gathering more and
more momentum. And the uestion freuently as/ed about globalization is not whether it will
continue, but at what pace. A disparate set of factors will dictate the future direction of
globalization, but one important entitysovereign governments should not be overloo/ed.
They still have the power to erect significant obstacles to globalization, ranging from tariffs to
immigration restrictions to military hostilities. "early a century ago, the global economy
operated in a very open environment, with goods, services, and people able to move across
borders with little if any difficulty. That openness began to wither away with the onset of #orld
#ar I in )*)
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CONCLUSION
The Globalisation has brought not only advantages to customers by providing a large range of imported products or by raising their standard of living, but has also had harsh effects by
destroying e;isting jobs, as well as by diminishing of local enterprises and culture in certain
countries and much more, too. In my opinion, governments should use innovation and research
to successfully answer industrial job losses and outsourcing of companies, as well as
maintaining a basic welfare system to help people towards more ualified jobs. The companies
who outsource should be made to pay an import duty or higher ta; in order to prevent huge
cuts in wages of many peoples jobs . Eowever, despite the identification of the ris/s and
opportunities associated with globalization, the phenomenon is still very difficult to predict. #e
can gladly ma/e predictions about the future effects of globalization, but this far, we would
unwise to count on them.
RE"ERENCES
www.google.com
https://en.wikipedia.org
www.blog.com
www.indianeconomy.comwww.globalpolicy.org
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www.imf.org
www. globalization.org
www.forbes.com
www.investopedia.com
http://www.imf.org/http://www.globalization.org/http://www.globalization.org/http://www.globalization.org/http://www.forbes.com/http://www.investopedia.com/http://www.imf.org/http://www.globalization.org/http://www.forbes.com/http://www.investopedia.com/