The Market as a Social Institution

The Market as a Social Institution

Question

Dissect upon the theme and womb of globalisation and highlight its features.

Answer

Globalisation:It is a complex series of economic, social, technological, cultural and political changes that have increased the interdependence, integration and interaction among people and economic players (i.e. companies) in disparate locations all over the world. This phenomenon has aroused much interest since the eighties i.e. 1980s.

Chief features of globalisation

(i)    It is one of the distinctive features of the contemporary world. The term is used mostly in an economic sense. It has no nexus with development of cosmos-consciousness in order to become cosmopolitan (viz. universal man).

(ii)    It is actually the wind propelled by the Bretton Woods institutions or twins (viz. I.M.F. and World Bank) who commenced their financial operation in 1947 and gave veto power to United States of America. In opposition of which the G-8. and G-77 were formed in the later year of 1950 CE; In brief; it ultimately favours developed countries and not in favour of third world countries (i.e. Asian, African and Latin American countries) or developing nations.

(iii)    It is the process of integration of world economies in conditions of free markets.

(iv) Free market envisages free flow of trade and capital and movement of persons across national borders.

(v)    It is thus, identified with the new world trade order and opening up of commercial markets.

(vi)    Science and technologies have greatly helped in the growth of globalisation. The whole process is facilitated by newly developed technology for immediate transmission of information.

(vii)    The process of economic integration on world level was interrupted by the world wars. The great economic depression (1929-1934 CE) and restrictions on the movement of people till almost the 1970s were imposed. However, the process of globalisation received new impetus in India during the last twenty six years.

(viii)    Internationalism of production has been taking place in a big way through the MNCs. These corporations or companies treat the globe a single market rather than a set of national markets.

(ix)    Globalisation has opened up new avenues for the MNCs. The era of globalisation has unfolded new opportunities for both developed and developing countries and turning the whole world into a global village in terms of economy however, not in terms of cosmopolitan values which would perhaps see numerous developments for at least a couple of centuries.

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