GLOBALIZATION AND INTERDEPENDENCE OF

WORLD ECONOMY

Submitted by:Shreya Ghosh MA, 1st Year 416HS1003

WHAT IS GLOBALIZATION?

The term Globalization refers to all those forces operating in the world economy that increase interdependence and at the same time make countries more and more dependent on forces outside their control.

FEATURES OF GLOBALIZATION The widening and

freeing of trade. The growth of

global capital markets & greater flow of short-term speculative capital

More Foreign Direct Investment

The spread of Information Technology

Greater movement of people

DANGERS OF GLOBALIZATION

Globalization and interdependence make countries more vulnerable to shocks such as world recessions, downward trend in the world trade, financial crisis, etc.

Competitive markets may be the best guarantee of efficiency, but not necessarily of equity.

Globalization and interdependence particularly means the malfunctioning of one set of economies hampering the functioning of others.

Globalization may lead to more environmental problems.

UNDP (1999) The United Nations Development

Programme calls for globalization based on:

Ethics Equity Inclusion Human Security Sustainability Development

CONLUSION It would be wrong to presume that developed

countries concern with the world poverty is motivated by self-interest only. They realize that their own survival depends upon economic and political harmony, which cannot thrive in a world perpetually divided into rich and poor. Some of the developed countries have shown a genuine humanitarian concern over the plight of third world countries which has resulted in the establishment and support of several institutions to assist the developing countries.

THANK YOU !