The final concept is the financial flows. It is a fact that when one country faces a crisis it affects other countries as well, this is some what herd instinct. Through capital flow and foreign exchange market resources are transferred increasing the gross turnover in the markets which is requisite to the international capital flow. Globalization has however has led into erosion of cultures; loss of jobs as many companies have prefer to outsource; loss of a nation’s sovereignty as many domestic policies are ignored; precariousness and insecurity as a small spark between inter-related countries can lead to a large confrontation (Alhuwalia, 08).
India is a developing economy which has grown from being one of the poorest in the world to the 18th biggest economy over the 10 years. The Indian economy is growing in steady manner which has promoted economic development. The population in India accounts for 16.7% of the total world’s population, however India sits on a 2.0% world area. India is thus a capital-scarce economy that needs to long-range sustainability of the resources such as water, mineral and land. The efficient utilization of India’s capacity calls for expertise work force which will increase the competitive advantage of India over other countries.
This will also see the building of institutions of excellence. The Indian government has therefore modeled policies in focus of the promotion of economic growth and tapping into the benefits of foreign investment and world market. The government has gone to the extent of introducing tax exemptions for core units and infrastructure. By so doing the improvements in the infrastructure sectors will benefit many businesses and consumers as well as promote employment. The 30% of the World’s population who live below the poverty line can have their lifestyles upgraded (Dhar, 03).
India has much strength which gives the country competitive advantage over other developing countries. India has abundant skilled labor which has made it the country to be on the forefront in the international trade. The IT industry thrives very well and this has continued to attract more foreign investment. As a result India is more stable and has grown tremendously. With the enactment of Acts such as the Protection of Plant Varieties and Farmers’ Rights Act and utilization of patent rights which Indian firms have been encouraged to file. India is reaping many benefits from maximizing these benefits in terms of international trade and investment. With India’s dominance in Information Technology, it has been able to reach a wider market providing services on a global level. This has called for the need to achieve efficiency and productivity to meet the required standards. Globalization has in India has resulted into migration of Indians across great landmasses, outsourcing, infrastructural growth, trade, off shoring amongst others (Deaton et.al, 02).