MR.

MANISH VERMA
Mr. Manish Verma
Mr. Manish Verma as a YOUTUBER & International
Motivational Speakers Professional Teacher || Problem
Consultant || NIOS DU - SOL Students Coordinator ||
Founder of Open schooling Awareness Program || CEO &
Founder of The Life Progress Academy, Social worker.

I want to help you all in every way because we can

contribute in any way in the development of the country
which will be a true tribute to the brave heroes and it will
be my first priority to take the country to a new height for
which I have tried to convert some of my ideas from social
media and from my educational academy into basalis in
which the safety of women, the education of daughters, is
the cause of terror from the country. Protection of spirit
and environment should be our first priority! Hope you all
get full support in this.

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B.A PROGRAM 3RD YEAR

GLOBALIZATION
For More Updates Visit:
www.manishvermalpa.com
Question 1. What is globalization?

Answer: Globalization is the free flow of capital, goods, services, ideas and

individuals between different countries!

1. Free flow of goods

2. Free flow of persons and services

Definitions of Globalization: -

According to Oscar Lange, "The future of

economic development of Least Developed Countries in modern times
depends mainly on international cooperation."

According to Deepak Nayyar, "Globalization is the expansion of economic

activity beyond the political boundaries of a country."

According to John Naswitt and Portasia Aburdin, "It should be seen as a

world in which all countries' trade is moving towards one country." In this,
the whole world is an economy and a market. "

The definitions conclude that "globalization is the process in which the

economy of a country is integrated with the economy of the whole world so
that the whole world can act as a single economy and a single market and
in which borderless internationalization practices to facilitate mutual
exchange of individuals, capital, technical goods, information and knowledge.
Globalization is also called universalization, globalization and international
names."
 The need for globalization: -

Globalization is needed for the following reasons:

(1) Globalization is a process of homogeneity and symmetry, in which the

whole world shrinks into one.

(2) For the rapid development of the economy, a policy of globalization was
adopted.

(3) Globalization is the association of a nation's industries with international

regulations or multinational corporations that deal with goods and services
outside other countries.

(4) The various nations of the world satisfy their needs by buying and selling
goods and services through the relative powers of demand and supply of
market mechanism with mutual cooperation and goodwill.

(5) 34 industries were covered under this policy. Under the industrial policy,
foreign capital investment up to 51% was allowed in high priority industries.

(6) The policy of globalization was confined to the basic sectors like
electricity, coal, petroleum required for the manufacture of foreign advanced
technology and industrial structure of the nation.

• Constraints of Globalization:

We can mention some of the difficulties in the path of globalization as follows:

1. Unequal Competition:

Globalization has given rise to unequal competition. This competition is between

'powerful multinational corporations' and 'weak (and relatively small Indian
enterprises)'.
According to Baldev Raj Nayyar, the main reasons for unequal competition
are:

1) Indian enterprises are much smaller in size than multinational corporations.

2) The cost of capital for Indian enterprises is much higher than that of
multinational corporations.

3) For four decades before 1991, the Indian corporate sector worked in a very
protectionist environment.

4) Many goods produced in the country are taxed at very high and indirect
levels.

5) Indian enterprises still cling to earlier regulations.

6) In some areas the policies of the Government of India have openly sided
with multinational corporations. They are given exemptions in taxes which are
not available to Indian entrepreneurs; Counter Guarantee has been provided for
their projects in the power sector, whereas Indian entrepreneurs have not been
given this facility.

2. Growing Protectionism Abroad:

Recent years have seen significant, qualitative changes in the international

economic environment. When industrialized countries were developing at a rapid
pace, these countries were admirers of free trade, but in the last few years,
since the pace of development has slowed down here, these countries have
started taking the cover of the policy of conservation.
for example:

(a) When Indian skirts (lingerie) started to become very popular in the United
States, the misconception was spread that these pens were made from
flammable material.

(b) Recently, European Union countries have imposed anti-dumping duty on

Indian textile exports.

(c) Developed countries, especially the United States, have raised the issue of
Labor Standards to reduce the export of carpets originating from India.

3. Formation of Regional Trading Blocks:

The basic assumption of globalization is that there will be no restriction on the

flow of goods, services and capital in all countries, but on the contrary, all
countries are tying themselves into regional trade groups and trade groups to
increase the capacity of export and international competition. Let's assume the
key. Currently there are more than 15 trading groups. The establishment of
these groups stops the process of free competition.

4. Need to Stimulate Technical Progress:

For globalization, it is necessary that developed countries with full determination

and dedication bring revolutionary changes in the production technologies used
in developing countries, so that globalization can take place.
5. Limited Financial Resources:

In order to be able to compete in the international market, a large amount of

capital will be needed to improve the quality of goods and increase production,
but there is a lack of capital in developing countries. As a result, these
countries have to go to international institutions such as the World Bank and
Monetary Fund to provide financial resources, which provide financial resources
on inappropriate terms.

6. Entry in Unwanted Area:

Under the globalization policy, multinational companies are entering more and
more consumer sector and service sector which is not fair. The assurance of a
guarantee rate of 16 to 18% on the appropriation of economic infrastructure is
also unfair. Similarly, the natural consequence of opening the insurance sector
to foreign companies will be that Indian savings will be even lower.

7. Other Problems:

(a) Suitable environment requirement:

Structural reforms in the country's economy have not been done completely
because the countries that have adopted globalization have created an
environment for them in the past, as well as the pace of our country's free
market has been slow.

(b) Adverse condition:

The United States is pressuring India to accept the concept of 'Special 301'
and 'Intellectual Property' rights. In such a situation, if we accept globalization,
then our economy will go to the hands of multinational companies and if we
reject, India will face many problems in globalization.

(c) Fear among workers:

Indian workers believe that the installation of modern machines in the country
will require fewer workers, as well as layoffs in factories and they will be
directly affected.

Question 2. What is the major dimension of globalization?

Answer:

There are four types of flow: -

1. Free flow of goods between different countries

2. Free movement of services or individuals between nations

3. Capital flow between nation-states or capitalists of one country can invest

capital in another country

4. Flow of ideas and culture

These flows indicate that capital or finance or technology and management

have also been internationalized, so managers or skilled craftsmen can sell
their services abroad.
Question 3. Describe the role of communication
technology in the spread of globalization?

Or

Test the main cause of globalization?

Answer:

Due to Globalization:

According to Corns and Mingst, "Globalization has been there even in the
earlier era, but today's globalization is unprecedented!" Never before has
there been such a huge association of markets, cultures, people and states.”

The major reasons for globalization are as follows:

1. Revolution in Technology and Communication: Technology has undergone

dramatic changes in the last two-three
decades. In this regard, we will
discuss these factors - cheap
telephone service, e-mail, computers,
jet-planes and large ocean vessels,
due to which different countries of the
world have come closer to each other
than before.

2. Capital, Technology: Raw materials, machines, goods manufactured in

factories and people can move quickly from one country to another! Due to
the revolution in the communication sector, you can invest capital anywhere by
pressing the button. Countries of the world have become very dependent on
each other.

3. Along with product and capital, ideas and culture have also become more
dynamic! The living, language, colloquial tone and attire of one country goes
to another place! These things have greatly boosted the trend of globalization!
When politicians, academicians, journalists and media persons go from one
country to another, they also carry with them the beliefs and traditions
associated with their country.

Socio-economic movements have also lost their national identity, that is, today
the movements have also become internationalized.

4. Revolution in technical and communication sector: Due to the flow of

people, goods and capital has gained a lot of strength. But not all countries
have the same experience in this country! Almost all companies in Ireland,
Switzerland, Netherlands, Sweden and Singapore today have taken the form of
international companies, while the level of "globalization" in other countries is
not as high.

5. The policy of economic liberalization and privatization: After the

disintegration of Soviet Union and the end of communist rule in Eastern
Europe, the socialist economy suffered a major setback! All-important industries
in the socialist economy are owned by the government! The era of liberalization
came after the decline of socialist ideology! Under liberalization, industrialists
have been given the freedom to enter any industry, trade.
 6. "Capital" was levied around the world by multinational companies:
especially in Asia, Africa and Latin America! International financial institutions
also put pressure on states to open their doors abroad for foreign investment
and foreign goods.

7. Mutual engagement of states and peoples: The meaning of mutual

engagement of states is - the realization that we all have a "common interest"
It is our welfare in the well-being of all! Terrorism, severe disease, viruses,
tsunamis and narcotics can fail from one country to another! Similarly,
economic slowdown is also not limited to one country.

Question 4. Explain the political consequences of

globalization?

Answer:

• Results of globalization: -

Political Consequences: Changes in the Role of the State as follows: -

1. Reduction in the welfare functions of the state: In the third and fourth
decade of the twentieth century,
developed countries like Britain,
Canada and Sweden had taken the
form of 'welfare states'! In
developing countries like India, it is
considered the responsibility of the
state to raise education, health and
housing facilities! But the ideology
of free trade led to cuts in the
welfare functions of the states! To deal with the financial crisis, developing
countries also have to take loans from the World Bank and the International
Monetary Fund and financial aid.

2. What effect did globalization have on the sovereignty of the states: By

the above description, we do not mean that the power of the states is
reduced! Despite globalization, the state remains the "special agent of
international politics"! No state wants external forces to interfere in its internal
affairs under the guise of human rights or in the event of internal unrest and
civil war. All nations want to resolve mutual disputes themselves! They do not
want Russia or America or any other major force of Europe to play the role of
'mediator' in solving their internal affairs.

3. The capacity of the states has increased a lot due to technological

development: -

With the development of technology or technology, the capacity of states has

increased in two ways! One, the destructive power of the states has increased
a lot! They can land their army from anywhere to anywhere in a few hours
with high speed aircraft! Secondly, through the developed information system,
they can get all kinds of information about various incidents and individuals
instantly! Thus, new technology has increased rather than reduced the power
and capacity of the states.
Question 5. Explain the economic consequences in
globalization?

Answer:

• Economic Results:

The economic consequences of globalization can be outlined as follows-

1. Free flow of goods and services: As already clarified, now there is a free
flow of goods, services and capital between different countries. Foreign
companies can freely sell their goods or services in markets in other countries.

2. The role of the International Monetary Fund, the World Bank and the
World Trade Organization is
increasing: The International Monetary
Fund, the World Bank and the World
Trade Organization are the three
important institutions that underpin the
globalization policy! In fact, developed
countries and multinational companies
are using these three institutions to
fulfill their economic interests! Poor and underdeveloped countries were
pressurized to open doors for multinationals.

3. Free flow of capital: Due to globalization, there is no restriction on foreign

investment now! For example, British or American companies and industrialists
are investing heavily in Indian companies! Similarly, Indian capitalists can
invest abroad! Due to the revolution in the communication sector, capital can
be invested anywhere for high profits.

4. Mobility of individuals: One aspect of globalization is that people can move

from one country to another on getting higher wages or salaries! But the
amount of capital or goods flow has increased, the amount of mobility of
people is not seen! The main obstacle in this is that the developed countries
do not want people from less developed nations to come and settle here!
They fear that the people from outside will not only kill jobs, but it will also
harm their social fabric and ethnic balance.

Question 6. Explain the cultural consequences in

globalization?

Answer:

• Cultural consequences:

1. Globalization also has a cultural side Internet, cable tv And Satellite Has
Eliminated Cultural Distances! Our food,
our values and ways of thinking have
changed drastically! Cultural homogeneity
has increased with globalization! The
culture and life values of Western
countries, especially America, have been
promoted.
2. 'Fast food culture' is a part of the life of western countries, especially
America! American culture is not imposed on people! Indeed, America's strength
and affluence has increased its cultural dominance! McDonald, Mickey Mouse
and Jackson are now a universal thing.

3. The 'cultural supremacy' of the West has increased, which can be called
'cultural empire'! The possibility of imperialist values taking over the world has
become stronger! The language, culture and civilization of small and poor
countries are in crisis, but American culture cannot become an alternative to
some great cultures.

4. Cultural Differentiation: The cultural impact of globalization has also been

that 'variations' have increased. Cultural influence is not unilateral! In the field
of culture, 'Bahulbad' was born, due to which the cultures of different countries
got the opportunity to become global! Read the fashion trick of jeans, it's
okay. But at the same time the demand for Khadi kurtas and silk and silk
garments of India is increasing! Demand for these items has increased not
only in Britain and America, but also in Germany.

5. Culture and language are not sedentary things: it increases with time. For
example, the French doctor Jean Paul Nerrier has developed a new type of
working language (Globish)! There are a total of 1500 words in the new
language and it is being claimed that it will end the dominance of English! Paul
Nerière says, "English era has passed, now the world will rule the globe"

Every culture is becoming stronger than globalization! This procedure is called

cultural differentiation.
Question 7. Critically examine globalization?

Answer:

Criticism of economic globalization i.e. its bad effects: -

Due to globalization, markets and people from all over the world have joined
each other! But many disadvantages of globalization were also revealed.

1. Due to cuts in the welfare programs of the states, the problems of the
general public have increased: the general public, especially the poor, need
"social security shield"! In other words, people would like the state to provide
facilities for education, health, housing, etc. for them! Poor farmers would like
that prices of fertilizers, pesticides and all such things should be at least so
that these things remain within the reach of everyone! For this, 'financial aid'
from the state is necessary! However, the ideology of globalization and free
trade forces the government to retreat from the path of social security and
public welfare.

2. Open trade hazards for poor and developing countries: The cheap goods
that will be made in the open market will win! Naturally, globalization will be
profitable for companies in American, Japanese, Chinese, and other developed
countries! Cheap goods can be made the same: -

• Adopts advanced technology

• Where workers are not only skilled, but also disciplined,

• Where modern methods of business-to-business management are available!

Wealthy countries like America give financial assistance to farmers in large

quantities, therefore their goods are much cheaper.
3. Neoliberalism: One of the major criticisms of globalization is that the neo-
colonialist world structure is taking birth from it! Now the policies of Least
Developed Nations are being formulated according to the directions of the
World Bank, multinational companies and the World Trade Organization.

4. Demonstration against globalization: Due to the ill effects of globalization,

many children and people in developing countries are agitating against
international financial institutions and the World Trade Organization.

Question 8. Describe the benefits of globalization?

Answer:

Benefits of economic globalization: -

The following arguments are made in favor of economic globalization:

1. Economic Growth and Prosperity: Globalization causes domestic

industrialists to face foreign
competition! Competition will increase
productivity and efficiency! The open
economy provides a wide variety of
goods and services to consumers at
affordable prices.

2. Globalization leads to greater engagement between nations: Advances in

information and communication technology have led to greater mutual
engagement between nations and individuals. The integration of every nation's
economy with the rest of the world is seen! Foreign companies will be able to
run business with local companies and firms.

3. It is not possible to reverse the process of globalization: Economists have

different views about globalization! But it is so certain that now it is not
possible to reverse this process! In the words of former US President Bill
Clinton, "We have no choice but to choose, globalization is a fact."

Question 9. What do you understand by globalization?

And what were its effects on workers, farmers, Dalits,
tribal and women?

Answer-

Introduction: -

In this era of globalization, the entire nation of the world is benefiting from
the liberalization process of mass communication, information technology
and economic exchange. The
process of knowledge sharing has
also started. As a result, there
has been a period of progress
from technical information to
management, environment,
nutrition and progress, the rise of
globalization has also taken place between 1870 and 1914.

According to Edward S. Harman: - “Globalization is also a structure of

facilities and economic relations for expansion of various cross-border
carpets (companies). Which is constantly developing. And as it progresses, it
is changing.

• "According to Herod Thathel and Robert: -" (globalization) is an imperfect

name for the process that involves the sky and international process of
moving the international economy into a fictional integrated world economy.

• David Held: - Globalization can be divided into three categories: Skeptic,

Extremist, Transformationalist. Proponents of the skeptical approach oppose
the universalization of the notion of globalization and giving it more
importance than necessary. He argues that people are old between regions
and cultures. The new thing in this is that the business of computer and
infrastructure technology has expanded, which has increased the mutual
activities of the world and the map of the world has become smaller or the
resolutions of globalization, despite being ubiquitous in social sciences, has
been a subject of debate among scholars, the process of globalization has
completely affected the lives of people of all the countries of the world.
There was a time when the concept of globalization was defined as the
growing global importance of economic analysis, the increasing global
importance, the field of economic activity growing globally.

Later many other aspects were involved in this, such as expansion of

international trade, telecommunications, financial cooperation and
coordination, Baurashtriya Corporation technical and scientific cooperation,
cultural cooperation transfer and refugee all and relations of rich and poor
countries etc.
• Impact of Globalization on Workers: -
Globalization has had a profound effect on various social groups and
classes, especially the working class has brought this world into a very
pathetic state. Due to the large-scale economic integration of the countries of
the world, the comprehensive legal framework for the protection, protection and
welfare of workers has changed and they have become subject to the
conditions of industrialists and capitalists. Labor law is of no importance and
the process of globalization has brought the workers into a helpless state.

• The structure and process of globalization has been such that it has a
bad effect on the workers and labor era.

In this context, the International Labor Organization emphasized the notion of

'accessible work' for workers.

• Displacement and unemployment have increased as a result of

globalization process, social security has decreased.

• With the diversification of economics, employment opportunities can be seen

as a far-reaching goal of increasing income, arranging human conditions of
work.

• Developed: -

1. Increase in employment

2. Increase in industry

3. Social Security

• Developing: -
1. Increase in unemployment

2. Production, decline in goods

3. Capital investment required.

• Impact of globalization on agricultural sector in developing

countries: -

Farmers in the era of globalization: -

The challenge arose between the process and products of globalization and
the wishes and aspirations of the farmers.

The changes that have taken place in various types of institutions and
processes as a result of the process of globalization have also had a
profound impact on the lives of farmers.

In developing countries like India, it has resulted in challenges between the

wishes and aspirations of the farmers. In developing countries like India, where
the farm or land is not only a means of livelihood for the farmers but also
generates a sense of social prestige, economic growth and autonomy. In India,
farmers have attachment to the land in the same way as mothers to her
children.

• It has two effects in agricultural areas: -

1. As a result, emphasis has been laid on the production of commercial

commodities, cash crops, which causes problems of manure-shrinkage and
starvation.
2. Inequality between farmers increases due to development of new
technology and scientific equipment for farming. Because not all farmers are
able to buy advanced scientific and technological equipment. This increases
the gap between rich farmers and poor farmers.

• The events of Singur and Nadigram in India can be seen as the result of
globalization.

• To maintain the dynamics of the stream of globalization, a 'Special

Economic Zone' is needed, but this creates a crisis of farmers becoming
landless as it happened in Singur and Nandigram.

• In the desire of economic development, big entrepreneurs and capitalists

have been invited to their states. A kind of fear has also arisen in the
farmers. However, the state governments are tempting farmers to give more
money in lieu of leaving the land. In such a situation, farmers with little money
left their land and are searching for the means of refuge and livelihood for the
displaced people.

➢ Impact of Globalization on Dalits: -

• The Dalit class consists of people of Indian society who have been socially,
economically educationally backward and have been exploited, repressed and
tortured for centuries. Dalits have also not been free from the effects of the
process of globalization.
• Supporters of globalization: -

Without discrimination of religion, caste and gender, not only will the Dalit and
deprived sections be connected to the mainstream through mutual economic
activities and interactions, but there will also be a kind of social solidarity
between them.

• Their educational backwardness to Dalits

• Victim of discrimination

• Unequal economic conditions created

• Reservation Policy

Therefore, due to the process of globalization, Dalits are not being harmed
because they do not fit themselves in this competitive market system. Dalits
do not get the opportunities that modern globalized world offers them in the
absence of competence, ability and education.

Globalization and tribal: -

In India, the tribal population is generally called the tribal class. The tribal
mainly live in the hilly and forested areas. Under the framework of the process
of globalization, the tribal population of 'all life' has nothing to do with all
transactions.

• Past socio-economic and

• the natural environment

• isolation from land

Land Acquisition Policy: -

Management of forests and natural tensions between the government and tribal

• Destroy the forest

• Poverty, debt and unemployment of people

• Natural calamity

➢ Women in the era of globalization: -

Women have been oppressed, oppressed and always marginalized in Indian

society for centuries. Even today, the women's movement is struggling to show
women their real status.

Architecture of women under multinational companies

• World Bank, World Trade Organization and International Monetary Fund

• As a result of globalization the health of the family has weakened because

the element of individualism has entered the family.

Therefore, incidents of divorce, same-sex marriage, abortion, single parent etc.

are increasing. The status of women from all this weakened even more.

Question 10. Describe the functions, responsibilities and

objectives of the International Monetary Fund?

Answer:
 ➢ International Monetary Fund: -
Is an international body that monitors the global economic situation of its
member countries? It provides economic
and technical assistance to its member
countries. This organization helps to
stabilize international exchange rates as
well as facilitate growth.

It is headquartered in Washington,
DC, United States. The managing
director of this organization is Dominic
Strauss. The IMF's special currency is SDR (Special Drawing Rights). The
currency of some countries is used for international trade and finance, it is
called SDR. SDR consists of Euro, Pound, Yen and Dollar.

Helps improve balance of payments (BOP), promotes increased global

monetary cooperation. It is one of the Britton Woods Twins which came into
existence in 1945. It is administered by 189 countries and these countries are
also responsible for its functions.

➢ Objective of IMF:

According to the paragraphs of the IMF agreement, its main objectives are to:

i. Promote international monetary cooperation.

ii. Ensuring balanced international trade.

iii. Ensuring the stability of the exchange rate.

iv. Eliminate or reduce exchange restrictions by promoting a multilateral

payments system.
v. To provide financial assistance to member countries to eliminate adverse
balance of payments.

vi. Reducing the imbalance of volume and duration of international trade.

➢ Functions of IMF: -
The primary function of the IMF is to ensure the stability of the international
monetary system - exchange rates and the system of international payments
that enables countries (and the people there) to trade with each other. The
functions of the IMF are discussed below:

• Surveillance: Through this system, the IMF reviews member countries'

policies, economic and financial development actions to maintain stability in the
international monetary system. The IMF advises its 189-member countries on
measures to promote economic stability, reduce vulnerability to economic and
financial crises, and encourage policies that raise living standards.

• Financial support: It provides funds to its members to correct balance of

payment problems: National Authority Design Adjustment Program, in close
collaboration with IMF, supported by IMF Financing; Continues financial support
conditional on effective implementation of these programs.

• Technical Assistance: Provides technical assistance and training to

member countries to help member countries in their ability to design and
implement effective policies. Technical assistance is provided in many areas
including tax policy and administration, management of expenses, monetary
and exchange rate policies, banking and financial system supervision and
regulation, legislative framework and statistics.

• Special Drawing Rights: - This facility was started in 1971 to improve

the international liquidity situation in the world. The IMF issues international
reserve asset. It is also known as Special Drawing Rights (SDR, also known
as paper gold), and complements the government reserves of member
countries. The total allocation of IMF is about SDR 204 billion (US $ 286
billion). IMF members can exchange SDRs for currencies among themselves.
The value of SDR is determined by 4 currencies i.e. US Dollar, Euro, Pound
Sterling and Japanese Yen. From October 2016, China's yuan will also be
included in it.

• Resources: The IMF's primary source of financial resources is its

members' quotas which reflect the member's relative position in the world
economy on a large scale. In addition, the IMF may borrow temporarily to
meet its quota resources.

• Administration and Organization: The IMF is accountable to the

governments of its member countries. At the top of its organizational structure
is the Board of Governors, which consists of a governor and an alternate
governor from each member country. The Board of Governors meets once
every year at the IMF - World Bank Annual Meeting. Twenty-four (24)
Governors sit on the International Monetary and Financial Committee (IMFC)
and usually meet twice a year.
• Credit facilities of IMF: -

1) Stand-by Arrangement (SBA): Through this the IMF helps countries in

economic crisis to correct balance of payments problems (BOP).

2) Flexible Credit Line (FCL): It is for those countries with a very good track
record in foundations, policies and policy implementation. This represents a
significant change in the fund financial support offered by the IMF, especially
the recent changes according to which it does not mention any current
(previously given) conditions nor has any limit on the size of the credit line
set.

3) Precautionary and Liquidity Line: The Precautionary and Liquidity Line

(PLL) PLL provides funding to countries with good policies to meet the actual
or potential balance of payments and its intent is to serve as insurance and
mitigate the crisis. Have to help.

4) Extendate Fund Facility (Extended Fund Facility) is used to correct balance

of payments partly related to structural problems that may take longer to
correct through macroeconomic balancing.

5) The Trade Integration Mechanism: This mechanism allows the IMF to

provide loans under this facility to developing countries that are facing the
problem of balance of payments due to multilateral trade and liberalization.
Because of multilateral trade liberalization, such countries lose preferential
access to certain markets and their export earnings are reduced or agriculture
Bsidi is increasing less given due to prices of food imported by them.
 • Lending to low-income countries:

Three types of loans have been created under the new Poverty Reduction and
Growth Trust (Poverty Reduction and Development Trust - PRGT) as part of
the following comprehensive reforms - Extended Credit Facility, Rapid Credit
Facility And standby credit facility. These are being discussed below:

• Debt relief: -

Apart from concessional loans, some low-income countries are eligible to avail
loans under the following two major initiatives.

• The Heavily Indebted Poor Countries initiative - It was started in 1996 and
expanded in 1999, debt relief in a coordinated manner with a view to restoring
debt stability to creditors under this initiative. Is provided

• The Multilateral Debt Relief Initiative - Under this, the IMF, the International
Development Association (IDA) of the World Bank and the African
Development Fund (AFDF) to help move towards achieving the Millennium
Development Goals. We forgive the entire debt given to countries.

Question 11. Critically evaluate the functioning of the

World Bank?

Answer:

Introduction: The World Bank is an important source of financial and

technical assistance for developing countries worldwide. Its mission is to
achieve sustainable results by fighting poverty with full vigor and professional
capacity and help people to
help themselves and their
environment. The World Bank
provides resources, information,
capacity building and public and
private sector partnerships for
this.

The World Bank is actually a confluence of two unique development

institutions: -

1 International Bank for Reconstruction and Development (IBRD)

2 International Development Association (IDA)

Both these institutions are owned by 188-member countries. The International

Finance Corporation (IFC), the Multilateral Investment Guarantee Agency
(MIGA) and the International Center for the Settlement of Investment Disputes
(ICFD) play a complementary role in the work of both.

All these institutions together provide low interest loans, interest free
borrowings and grants to developing countries for a variety of purposes.
These include investment in education, health, public administration,
infrastructure sector, finance and private sector development, agriculture and
environment and natural resource management.
The World Bank is an international financial institution that provides loans. It is
headquartered in Washington DC, the capital of USA.

The day-to-day operations of the bank have been handed over to the Board of
Executive Directors, numbering 21, who are appointed by the five World Bank
members who have the largest share of the bank's total capital.

• Functions of World Bank: -

The main function of the bank is to promote economic growth of those

countries by providing long-term, loans or assistance to the member nations
for productive purpose. Developing countries are mainly given credit for the
following objectives.

1. For production of gas and oil

2. To strengthen the infrastructure (roads, water, electricity etc.)

3. For the resolution of problems arising from economic crises and

administrative reforms

4. For rural development and irrigation facilities

5. For environmental protection

Question 12. Explain the organizational structure of the

World Trade Organization?

Introduction: -

The World Trade Organization is the successor organization of GATT. It came

into force from 1 January 1995, as a result of the end of multilateral trade
negotiations of the Uruguay Round. India was a founding member of both
GATT in 1947 and the World Trade Organization in 1995.

Member: -

As of July 2015, the membership of the World Trade Organization is 164. In

July 2015, Kazakhstan became the 162 members of the World Trade
Organization. In the same year, Liberia became 163 and Afghanistan 164
member.

• Policy making

Mandate of the World Trade Organization includes trade in goods, trade in

services, investment measures related to trade and intellectual property rights
related to trade. The World Trade Organization Ministerial Conference which
includes trade ministers from all member countries, W.T.O. Is the highest
policy making body of, which has at least one meeting every 2 years?

All these bodies are assisted by the Secretariat, headed by the Director
General of the World Trade Organization. In addition to such functions
assigned to the General Council under various agreements, the General Council
also acts as a Dispute Settlement Body (DSB) and Trade Policy Review Body
(TPRB).

• This organization is broader than GATT and provides institutional and

legal basis for multilateral trading system. The organization is in fact the
watchdog of international trade which constantly monitors the trade
arrangements of all countries.
 • The WTO has been established on the basis of an international treaty
by the parliaments of the member countries, so contrary to the
temporary nature of the GATT (WTO) it is a permanent organization.

➢ World Trade Organization: Historical Background:

1. The 'Tariff and Trade Agreement' (GATT) evolved from the ashes of the
Havana Charter. Trade was facing
severe problems in the world during
the 1930s and World War II, so the
concerned nations thought of
adopting a liberal world trade system
after the Second World War.

2. With this view the International

Conference on Trade and Employment was held in Havana in the winter of
1947-48 in which 53 countries participated and signed a charter to set up an
International Trade Organization, but the US Congress never approved the
Havana Charter Not supported, as a result no international trade organization
came into existence.

3. In addition, 23 countries agreed to continue extensive tariff negotiations for

trade concessions in Geneva, which were included in the 'GAT'. This
Agreement (GATT) was signed on October 30, 1947 and when other countries
also signed it, the "General Agreement on Tariffs and Trade" (GATT) was
implemented on January 1, 1948.
4. GATT was a multilateral treaty signed by about 111 countries. Gat was
neither an organization nor a court. It was a decision-making platform with a
code of conduct rules of international trade and a system of trade
liberalization.

5. It was a platform where the contracting countries gathered from time to

time to discuss their trade problems, find solutions and discuss the possibilities
of expanding their business.

6. Since 1947, seven rounds of world trade negotiations (conferences) have

been held under GATT and the eighth round Punta del Este (Uruguay) started
in September 1986. The Gat discussions of the Uruguay Round ended in
Marrakesh (Morocco) on 15 April 1994.

7. Ministers from 123 countries including India signed the final act. This final
act encompasses the formation and functioning of the 'World Trade
Organization' (WTO). In fact, the 'World Trade Organization' Agreement is the
Uruguay Agreement by which the initial 'GAT' has now become a part of the
'World Trade Organization' which came into force from 1 January 1995.

• World Trade Organization: Objective:

The following objectives are stated in the preamble of the WTO Establishment
Agreement:
1. Business and financial activities should be conducted in a way that
ensures full employment; With a steady increase in real income and
effective demand, the standard of living should be improved and the
production and trade of goods and services should be spread.

2. Use the available resources of the world with a view to sustainable

development so that the environment can be protected and protected.

3. To make such positive efforts so that the developing countries, especially

the least developed countries, can get a fair share in the growth of
international trade according to the needs of their economic development.

4. To provide mutual and mutually beneficial arrangements by removing the

biased conduct in trade relations, removing tariffs and trade barriers.

5. To develop a more stable and viable multilateral organized trade system

as a result of all multilateral trade negotiations included in the GATT and the
Uruguay Round.

• World Trade Organization: Functions:

The following are the functions of the World Trade Organization:

i. It simplifies the implementation, management and operation of bilateral and

multilateral trade agreements.
ii. It provides the appropriate framework for the implementation,
administration and operation of multilateral trade agreements related to civil
aviation, government procurement, dairy trade and beef.

iii. It deals with agreements related to agreements, multilateral trade,

accepted by the Ministerial Conference and presents a platform for the
implementation of the decisions made by it.

iv. It helps in resolving trade disputes of member countries.

v. Monitors national trade policies of its member countries.

vi. To cooperate with international organizations related to international

economic and financial policy formulation.

• World Trade Organization: Structure:

The following are the major components in the structure of the World Trade
Organization:

1. Ministerial Conference:

The highest policy-making body of the World Trade Organization is the

ministerial conference in which all members have representatives who meet at
least once in two years. It drives the entire functioning of the organization. It
decides on all matters under any multilateral agreement.

2. General Council:

The organization has a 'General Council' to conduct administrative work in

which each member nation has a permanent representative. It usually meets
once a month in Geneva. It also acts as a quarrel settlement body and trade
policy review body, which has its own chairman.
3. Secretariat:

The Secretariat of the organization is headed by the Director General. The

Ministerial Conference selects the Director General. He has a tenure of 4
years. He gives estimates and financial statements of the annual budget to the
Budget, Finance and Administration Committee and recommends for final
approval of the General Council.

➢ World Trade Agreement:

Traditionally, GATT has been making only rules related to the trade in goods,
which mainly consisted of manufactured goods, agriculture was out of its scope,
but in Uruguay negotiation, the tradition shifted from the negotiation area. Gaya:

i. Trade Related Aspects of Investment Measures - TRIMS,

ii. Trade related aspects of Intellectual Property Rights - TRIP,

iii. Trade in Services,

iv. Agriculture.

Question 13. Describe the main objectives and functions

of the General Agreement on Trade and Tariffs?

Answer:
Introduction: - The World Trade Organization is the successor of GAT.
GATT was a forum where
member countries would gather
from time to time and negotiate
and solve problems of world
trade, but the World Trade
Organization is a well-organized
and sustainable world trade
body which has a legal standing
and is a World Bank. And
equivalent to the International Monetary Fund. On January 1, 1995, it had only
77 members whose number has gone up to 164 as on January 1, 2016.

Difference between GATT and WTO:

The WTO is not an extension of the GATT, but is its successor. He has
completely replaced Gat.

However, the following are important differences between the two:

1. GAT did not have any legal status while WTO has legal status. It was
born under the International Treaty, which has been ratified by the
governments of member countries and their legislatures.

2. GATT was simply a set of rules and systems regarding selective

multilateral agreements - there were separate agreements on different topics
that were not binding on members. Any member could refuse to join any
agreement, while the agreements that have become part of the WTO are
permanent and binding on all members. Action can be taken against a
member for violating them.

3. The dispute settlement system under GATT was deferred and its
decisions were not binding even though the WTO dispute settlement system is
automatic, expeditious and fully applicable to the members.

4. GATT was a forum where member countries met only once in a decade
to consider and solve trade problems, while the World Trade Organization is
a well-established, regulated World Trade Organization where decisions are
time bound.

5. The GATT rules were applicable only to the trade of goods, whereas the
trade of goods and services not only comes under the World Trade
Organization, but also the subject matter of intellectual property rights and
many other agreements.

6. GATT had a small office overseen by a director general, while the World
Trade Organization has a large office and vast bureaucratic system.
Question 14. Explain the main features and benefits of
offshore banking?

Answer:
Banking industry has emerged as a special industry in the 1990s, with banking
activities also spreading rapidly due to globalization.

Offshore banking is the term used for such banks which helps in increasing
the business through offices abroad outside their country.

• In general terms, offshore banks are those banks which are banks of other
countries and whoever is depositing money in them are promised lower tax
(tax) and maximum benefit to their customers.

Offshore bank is the bank which is different from the depositor (money
depositor).

Offshore bank holds deposits that are in a different currency from where the
bank is located.

For example: - There is a dollar deposit in the bank of Zurich.

• Offshore banks transact in many types of currencies in which Euro currency

is special.

• Like most (ASEAN) countries Singapore, Hong Kong has more currency in
Euro, some people say that both Euro and Dollar are same currency but it is
not.

• Banks that accept both Euro and Dollar are called Euro Banks.
Offshore bank benefits: -

Offshore banking provides many services which we can see as an advantage

of offshore bank! Which is as follows: -

1. High level of privacy: - The information about your money is kept secret
and only you and the bank have information about how much is actually there.

2. High quality protection from economic instability: - During the financial

crisis, you are assured that your deposits do not sink.

3. Facilitates interest

4. Provides funds transfer facilities: - If your money is in these banks, then

they can send funds from one place to another via electronics. Also, make all
the information related to the bank available on time.

• Divide offshore banking into two categories: -

1. Offshore Branches

2. Offshore subsidiary

Offshore branches handle most of the transactions, the same part of the
offshore bank subsidiaries are other forms of complete arrangement. Those who
criticize offshore banking believe that it also reduces money loading which
promotes crimes.
Offshore is the main center of the bank which consists of Switzerland and
Cayman Islands.

Also, some areas of Jersey Guernsey and Isle of Man are being developed
for offshore bank.

Question 15. Explain the effect of globalization on

multisensory and labor migration?

Or

Describe the multiplication and labor benefits and

losses?

Or

In the context of globalization, what are the effects

of labor, migration and autosensitization?

Answer:

Autosensitization is the form of globalization, which has been happening on the

entire world since the 1990s. Multisource can be understood as follows!

"Bahisrotan is called those multinational companies and companies that get

their production, service at cheap prices and open companies outside of one
country to earn more profit."
Types of Bahrissotan: -

1. KPO knowledge-based multisource

2. Bahisrotan based on BPO business

Call centers are the best example of this.

Effect of Bahisrotan (in terms of benefits): -

1. Increase in foreign investment: -

Today, in most of the developing countries through Bahisrotan, it is seen that

the companies are getting reconciled or turning to the developing countries
and doing most of their work in these countries, which is increasing the
investment in developing countries.

2. Improving Economy of Developing Countries: -

Money is being invested in developing countries through FDI, which is

improving their economy and so much money is being collected in developing
countries that they are able to do their public welfare work!

3. Getting new employment opportunities: -

Most employment in poor backward and developing countries is increasing

through Bahisrotan today! In countries like India, both illiterate and educated
people are getting employment through call centers and malls.
4. The cost of goods has come down and consumers have gained more: -

Through multi-nationals, a country is searching for developing countries to

reduce the cost of its goods, so that they can get cheap labor for good
market and get more profit.

5. Workers training: -

A training is given to the laborers through Bahisrotan so that he can get his
skills in the works.

6. Development in knowledge-based works: - Most of such works are

increasing in the country, which is knowledge-based, today the arrival of
machines has an opportunity to use the work better and efficiently.

• Losses of Bahisrotan (demerit): -

1. Increasing the influence of external country on the economy of countries:

In Bahisrotan, the developed countries are getting more benefits and they are
increasing their influence on the activities of the developing countries.

2. Increase in unemployment due to widespread use of machines: -

Developing countries do not have enough capacity to use big machines on

their own, so they make their living by doing small activities, but today
developed countries use their machines to economize by using machines in
other countries through multisource.
3. The flow of capital from the country to abroad: -

Today, the nation's money is being spent abroad through these TNC's or
MNC's through Bahisrotan.

4. Increase in exploitation against workers: -

In developing countries Bahisrotan gives employment to the people, but

educated youth are kept on jobs and they are paid less and salary or less
income is given out to protest.

Question 16. What is Foreign Direct Investment (FDI)?

Describe the benefits and losses of direct investment?

Answer: -

Meaning of Foreign Direct Investment: -

When money is invested by a country or company as an investment in

another country! Is done to earn more profit.

Unless 10% of the investment is made by an outside company, it is not

called foreign, so it is important to invest 10%.

Types of foreign investment: -

1. Inward: - Companies outside and the company and government of the

country which invest together.

2. Outward: - The company is fully invested out of it.

• Benefits of FDI: -

1. Helps strengthen the economy: -

The country is producing, but due

to foreign investment or the arrival
of a foreign company, both the
countries and abroad are
increasing the production, which is
giving sufficient benefits to the
country.

2. Help to lift the economy of countries from conflict: -

The countries whose economy gets out of the crisis because the countries do
not need to take loans, help comes through investment.

3. Rise of new employment opportunities: -

With the advent of foreign companies, new enterprises have been created and
many residents are getting employment through them.

Steel Plant - Bokaro

Metro

Bullet train

4. Worker's education: -

Teaching is being done before the workers work so that the workers have got
the opportunity to run new technologies, the rights of the workers are aware,
etc. Also, the way they were exploited earlier, they have got freedom from
exploitation.

5. The quality of manufacturing / goods is improving: -

Earlier, there were more indigenous industries in the country, but now with FDI
big machines have come and with them the quality of manufacturing has
become better than before.

6. The country has introduced various types of new taxes: -

Through FDI, our local governments have started receiving different types of
new taxes: -

Today our local governments are receiving different types of taxes through
FDI! like:

Tariff tax - border tax

Business Tax -GST

• Losses of foreign investment: -

1. Foreign flow of domestic capital: -

The country invests its capital abroad, which hurts its country's growth
momentum.

Foreign companies invest their money, due to which whatever money is

earned from those countries, they bring their country and the capital of a
country flows abroad.
2. Increases the population of the country: -

When foreign companies come, the population of your country increases as

well as the physical resources found in those countries are also rapidly
decreasing due to which the problem of resources and economic development
for the coming generations is increasing.

3. Increase in exploitation against workers: -

To get the work done in your enterprises as you want and to get them out of
jobs on their opposition, do not let them become workers' organizations.

4. Data of the country going abroad: -

Today, through FDI, the country has to depend on them for things like
communication, transportation etc. And due to this, a lot of data of the country
goes to these companies.

5. Reduction in employment opportunities: -

The country's cottage industries, domestic industries are getting cut down
because the quality of the goods made in them is not good, whereas the
MNC's items are being liked by the people, which is causing their employment.

6. Weakness of State: -

Due to foreign companies, the state is not able to control them and it is
limited to governance only. Public welfare is going out of its scope.
Question 17. What are transnational corporations or
multinational companies? State the impact of
globalization on it?

Answer: -

Role: - The transnational corporation is sometimes held to such multinational

companies that conduct their
operations in more than one
country! Transnational corporations
are called such companies whose
production and service availability
is in more than one country. Such
companies have their parent or
main headquarters in one country.
Offices, branches or production
units from other countries are located and conduct their operations in other
countries. These are owned by companies or wholly or partially. These are
called multinational or transnational corporations.

• Role of Desalination in Transnational Corporations: -

Globalization has given these multinational companies an opportunity to spread

their branches in the world, its effects which are as follows: -

1. Abolished trade barriers and restrictions on trade: - Globalization

has reduced the conditions for trade between different countries, eliminating it
and production has given an opportunity to sell goods and goods in most
countries.

2. Reduction in cost of goods: - Due to globalization, multinational

companies are producing in backward, underdeveloped and developing
countries at low prices, which is reducing the cost and increasing their profits.

3. There has been an increase in the means of transportation: -

With the advent of globalization, the expenses of transportation and the

coming obstacles have also been removed, the cost of transporting goods has
also reduced due to the proper arrangement of transportation in foreign and
multinational corporations. There has been an increase and trade is taking
place in every corner of the world through transport.

Ports, airports, stations have also increased.

4. Increase in mediums of communication: - Due to the transnational

corporations, the medium of communication has also developed. Today the
Internet has transformed the entire world into a village (village) and business
today is well-being from one country to another. It is blooming and the house
can use any object in the world.

5. When a transnational corporation dominates one market, it

moves to new markets elsewhere and retains its dominance there too.
6. Techniques are freely exchanged through transnational

corporations, so that poor and developing countries are also able to use
machines and technologies of developed countries.

7. These companies seek other countries for foreign investment so

that money can be made from money.

8. Increase in multinational companies: - Since the process of

globalization has started, since transnational companies have increased rapidly,
today most of the companies in 90% of the countries are Germany,
Netherlands, America, wherever these companies go, it is in that country.
Makes full use of the economy of the world and reads out in the search of
new markets, these companies use 90% of the world's technologies, 70% of
the world Trade is done by these companies. These companies purify and
trade most of the things like oil, diesel, etc. in the world. Their role is also
important in most of the world's oil, gas, electrical energy prices. It also has
the largest trade of minerals in the world. Is through the world's largest
airplanes, medicines, satellites, etc. are also traded through it.

➢ Conclusion: -

We can say in this way that multinational companies, whether in any country,
are backward or developing countries have artery of all those countries and the
economy rotates around these companies. The process of globalization also
started by these countries and most of these companies Promotes the Hatta’s.