Effects of Globalization

Effects of globalisation

This policy was brought in opening up the economy. Trade liberalisation means opening up markets by bringing down trade barriers such as tariffs. Doing this allows goods and services from everywhere to compete with domestic products and services.

But in practice the set-up of global trade rules and the way these are administered by the World Trade Organisation, work best for those countries who are already rich, and increases the gap between them and poorer countries who are already struggling to compete.

It is first essential to understand why so many countries, in so many different parts of the world, with such different economic systems, at such different stages of development, have all headed in the same direction. Actually this policy basically took its hike after the fall of Soviet Union and every country starting accepting it for the sake of development of theirs and in this completive era every country wants to be in the line of developed countries.

This policy on the face of it might have been god policy but the way it had been it implemented and the way politics is been played in its implementation is something which has been very detrimental for every country.

It is to be understood how the developed countries has used it for their purpose by defusing the cause of the underdeveloped countries, how they have used them for their own good. What these developed countries or the core countries do is that they first get cheap labour and raw materials from them and form new technology with the help them and when the these new technology get outdated there then they dump it in the periphery countries for example in the case of India touch screen phone are now getting very popular but it is too been taken note of that in countries like U.S.A. are now outdated these technology was there last but now it has been replaced with new one so now what happened is that because of removal of trade barriers now what these developed countries is that they are now selling of their old technological stuffs in India as India is not advanced as much as they are. This is what is happening in every department, even so for the military and other intelligence purpose India is still lagging behind in technology and is still using outdated technology and that why it won't develop soon.

As some of these countries are so dependent on those countries for their economic market that they have to follow it in the way they want though how arbitrary their policies might be. It is to be taken note of that the policies of free trade are being basically controlled W.T.O.,IMF and World Bank U.S.A. is basically having maximum share of these institutions and so it is having its control over these institutions so when some policy is in their favour they are being implemented even though they are harming the developing countries but when it is the opposite of this the policies