Globalization - every coin has two sides

Our domestic demand for products and services is still there while the demand from foreign countries has decreased. In the past (before 2006) we have expanded our businesses based on demand mostly from the outside our own country and foreign direct investments has been fuelling the success story of India. 2006 onwards we saw the demand from outside decreasing due to slowdown in economy globally. This has led to the fixed capital which we have incurred to increase our production in the form of manpower and machine is not getting fully utilized. In this situation the government policies try to support internal companies to use the unutilized resources on domestic market, while it tries to isolate various sectors from bidding for the domestic market by outside players. In one way this is disadvantage to globalization. So here is a situation of advantages and disadvantages of globalization. By the way I am not supporter of the left policies.

Will globalization benefit India?

In some sense, everyone benefits out of globalization, as it lifts the level of competition forcing everyone to deliver at a certain minimum level, below which the service or product will not survive. When this happens there is an automatic course correction and improved quality of the services and products.
For India to derive maximum out of the globalization, the Government needs to start promoting their work horses (90% of the population) and thinkers (10% of the population). Provide more opportunities for entrepreneurship by coming up with friendly policies and anti-corruption.

Who will benefit maximum out of globalization?

Clearly the developed countries are at an advantage from globalization. They have been able to hold to the advantageous positions. However, in the last 10 years countries from Asia seem to be catching up at a very fast rate with regard to economic growth. Some of these countries are well on their way to dislodge from higher positions the not well performing European countries. China, India, Korea have done extremely well to bridge some the gaps of product and service quality.
In all these, the leading beneficiaries of globalization have to recognize that in the era of globalization, we will either succeed together in building a more prosperous world, or we will suffer together as we each lose ground.

Has globalization benefited companies and people?

Globalization has definitely benefited companies. Companies can extend their range and reach in terms of markets and production facilities to national, multinational, and international levels.

Companies have benefited due to globalization in terms of increase in the power, profits, and productivity of when they have strategically chosen among many nations for their sources of materials, production facilities, and markets, by quickly adjusting to changing market conditions.

People have benefited due to globalization as it has involved greater openness in the international economy, an integration of markets on a worldwide basis, and a movement toward a borderless world, all of which have yielded an increases in quantity and quality of products and services.