International trade or foreign trade is the system by which countries exchange goods and services.
Countries trade with each other to obtain things that are better quality, less expensive, or simply different from goods and services produced at home. 
Foreign trade is highly competitive in order to maintain and increase the demand for goods, the exporting countries have to keep up the quality of goods.
Thus foreign trade ensures that the quality and standardized goods are produced.

The major purpose of liberalisation was to free the large private corporate sector from bureaucratic controls. It, therefore started dismantling the regime of industrial licensing and controls in pursuance of this policy, the industrial policy of 1991 abolished industrial licensing for all projects except for a short set of 18 industries. 

Manufactured and  agricultural products dominate the export trade of India.

Some MNCs have set up their customer care units and call centres in developing countries like India. The main objective behind this is earning profits by lowering the operational costs. That way MNCs are outsourcing their jobs to such nations where labour cost is low. Even the work of accounting, engineering, marketing, etc, is being outsourced in developing countries having English speaking population.

The Indian government had put barriers to foreign trade and foreign investment to protect domestic producers from foreign competition, especially when industries had just begun to come up in the 1950s and 1960s. At this time, competition from imports would have been a death blow to growing industries. Hence, India allowed imports of essential goods only.

In New Economic Policy in 1991, the government wished to remove these barriers because it felt that domestic producers were ready to compete with foreign industries. It felt that foreign competition would in fact improve the quality of goods produced by Indian industries. This decision was also supported by powerful international organisations.

Globalisation means integrating the economy of a country with the economies of other countries under conditions of free flow of trade, capital and movement of persons across borders. It includes
(i) Increase in foreign trade
(ii) Export and import of techniques of production.
(iii) Flow of capital and finance from one country to another
(iv) Migration of people from one country to another.

Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of globalisation. Markets in India are selling goods produced in many other countries. This means there is increasing trade with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India because of cheaper production costs. While consumers have more choices in the market, the effect of rising demand and purchasing power has meant greater competition among the producers.

Foreign trade provides opportunities for both producers and buyers to reach beyond the markets of their own countries. Goods travel from one country to another. Competition among producers of various countries as well as buyers prevails. Thus foreign trade leads to integration of markets across countries. For example, during Diwali season, buyers in India have the option of choosing between Indian and Chinese decorative lights and bulbs. So this provides an opportunity to expand business.

 

Benefits of globalization of India:

• Increase in the volume of trade in goods and services
• Inflow of private foreign capital and export orientation of the economy.
• Increases volume of output, income and employment.

Negative Impact / Fears of Globalisation.

• It may not help in achieving sustainable growth.
• It may lead to widening of income inequalities among various countries.
• It may lead to aggravation of income inequalities within countries.

Whatever may be the fears of globalisation, I feel that it has now become a process which is catching the fancy of more and more nations. Hence we must become ready to accept globalisation with grace and also maximise economic gains from the world market.

There are several objectives of liberalization. 

(i) - b
(ii) - e
(iii) - d
(iv) - c
(v) - a

After twenty years, the  world would undergo a positive change which will possess the following features— healthy competition, improved productive efficiency, increased volume of output, income and employment, better living standards, greater availability of information and modern technology.
Reason for the views given above : These are the favorable factors for globalisation :

• Availability of human resources both quantity wise and quality wise.
• Broad resource and industrial base of major countries.
• Growing entrepreneurship
• Growing domestic market.

Rio Convention, the first ever legal convention on global climate change and biological diversity, was convened for addressing urgent problems of environmental protection and socio-economic development at the global level. The convention endorsed the Global Forest Principles and adopted Agenda-21 for achieving sustainable development in the 21st century.

Information and Communication technology like the internet, mobile phones, online shopping has played the major role in spreading out products and services across countries. By online shopping, we shop many products from home. With the help of internet any company can sell its products worldwide and by e-banking made the instant payment process. By communication technology producer can communicate with the buyer in a very easy way. These are used to place orders for goods and services. For example, anyone from Mumbai can place an order for designer dress put on sale in London.

We have a wide range of products in our market due to globalization. Globalization has also created new opportunities for companies providing services. Better job opportunities for people have given rise to migration. Goods become cheaper and have many choices to the user. For example, in electronic industries many Indian as well as international brands are there.

Globalisation is nothing but the process in which consumers and producers both have many benefits.

MNC may buy up local companies and then expand production.

Foreign trade been integrating markets of different countries by the following ways –  

The cost of production is reduced considerably due to cheap labour and the MNCs earn great profits. So their factories are set up in those regions where they get cheap labour and other resources.

Trade liberalization is the removal or reduction of restrictions or barriers on the free exchange of goods between nations. This includes the removal or reduction of tariff obstacles, such as duties and surcharges, and non-tariff obstacles, such as licensing rules, quotas and other requirements.  This can lead to lower production costs, which may also translate into savings for consumers.

 The money that is spent to buy assets such as land, building, machines and other equipment is called investment. Any investment is made with the hope that these assets will earn profits.

Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. It is a remarkable phenomenon by which many geographical and cultural barriers have come down gradually and the entire world has become a global village. It is the rapid expansion of communication and transportation, which has reduced distances and generated an everlasting interdependence among people and nations at all levels.

Trade barriers are nothing but the type of measures which are introduced by government or public authorities to make imported goods or services less competitive than locally produced goods and services. Not everything that prevents or restricts trade can be charecterished as a trade barrier.

(a) It improves productivity and efficiency in the use of resources through the process of competition.
(b) The growth rate of the economy has gone up with the increase in foreign investment and foreign technology in India.
(c) It allows consumers to enjoy a wider range of goods and services at a lower cost.

Impacts of globalisation in India are
(i) It has improved the productivity and efficiency of Indian companies in the use of resources through the process of competition.
(ii) The growth rate of the economy has gone up with the increase in foreign investment and foreign technology in India.
(iii) It has allowed the consumers to enjoy a wider range of goods and services at lower costs.

The chief features of our foreign trade are as follows:

The following are the positive impacts of globalisation on the Indian economy:

• Trade promotes the competition both within as well as outside the nation. Producers of different countries now closely compete against each other even though they are separated by thousands of miles. 
• Rapid improvement in information and communication technology has been one major factor that has stimulated the Globalisation process which means integrating the economy of a country with the economies of other countries under conditions of free flow of trade and capital and movement of persons across borders. 
• With the expansion of trade the choice of goods in market rises. Consumers get more variety and quality goods at cheaper rates. Similarly, for the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced. In general, with the opening of the trade, goods travel from one market to another. Choice of goods in the markets increases.
  

Foreign trade is the trade between one country and the other countries. Goods sent from one country to the others are called Exports. Goods that a country gets from other countries are called Imports.

Advantages of MNCs are:

• Better emplyment opportunities
• Development of new technologies
• Improvement in infrastructure
• Availability of variety of goods

Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe. Reasons for globalisation. There are several key factors which have influenced the process of globalisation: Improvements in transportation - larger cargo ships mean that the cost of transporting goods between countries has decreased. ... Transport improvements also mean that goods and people can travel more quickly. globalization is the process by which people and goods move easily across borders. Principally, it's an economic concept – the integration of markets, trade and investments with few barriers to slow the flow of products and services between nations.

MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs; and where the availability of other factors of production is assured.
Having assured themselves of these conditions, MNCs set up factories and offices for production. The money that is spent to buy assets such as land, building, machines and other equipment is called investment. Investment made by MNCs is called foreign investment. Any investment is made with the hope that these assets will earn profits.
MNCs set up production jointly with some of the local companies of these countries. The benefit to the local company of such joint production is two-fold. First, MNCs can provide money for additional investments, like buying new machines for faster production. Second, MNCs might bring with them the latest technology for production.
the most common route for MNC investments is to buy up local companies and then to expand production.
there are a variety of ways in which the MNCs are spreading their production and interacting with local producers in various countries across the globe.

Today people as consumers in a globalised world are very much aware of their rights and also very much active when it comes to foreign trade policies of countries all over the world. They organise massive campaigns and protests and influence the trade and investment policies of the WTO and their own counties as well.

The nutrition transition. implicated in the rapid rose of obesity and diet-related chronic diseases worldwide, Is rooted on the processes of globalization Globalization affects the nature of the food supply chain, thereby altering the quantity, type, cost, and desirability of foods available for consumption.

Today, the consumers all over the world have a wide choice of goods and services before them owing to Globalisation.

Until the middle of the twentieth century, production was largely organised within countries. Colonies such as India exported raw materials and food stuff and imported finished goods. Trade was the main channel connecting distant countries.
This was before large companies called multinational corporations (MNCs)emerged on the scene. A MNC is a company that owns or controls production in more than one nation. The companies set up offices and factories for production in regions where they can get cheap labour and other resources. This is done so that the cost of production is low and the MNCs can earn greater profits.
the goods and services are produced globally. Asa result, production is organised in increasingly complex ways. The production process is divided into small parts and spread out across the globe. MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs; and where the availability of other factors of production is assured. In addition, MNCs might look for government policies that look after their interests.

In the past two to three decades, more and more MNCs have been looking for locations around the world which would be cheap for their production.
At the same time, foreign trade between countries has been rising rapidly. A large part of the foreign trade is also controlled by MNCs.
Foreign investment by MNCs in these countries has been rising.
The result of greater foreign investment and greater foreign trade has been greater integration of production and markets across countries. Globalisation is this process of rapid integration or interconnection between countries. MNCs are playing a major role in the globalisation process. More and more goods and services, investments and technology are moving between countries.

Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been setup. Governments can use trade barriers to increase or decrease(regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country.
The Indian government, after Independence, had put barriers to foreign trade and foreign investment. This was considered necessary to protect the producers within the country from foreign competition. Industries were just coming up in the1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up.
Thus, India allowed imports of only essential items
Starting around 1991, some far reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Removing barriers or restrictions set by the government is what is known as liberalisation. With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export. The government imposes much less restrictions than before and is therefore said to be more liberal.

Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
Among producers and workers, the impact of globalisation has not been uniform.
MNCs have increased their investments in India over the past 20years, which means investing in India has been beneficial for them. several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards. Some have gained from successful collaborations with foreign companies.
Globalisation has also created new opportunities for companies providing services, particularly those involving IT.

Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas.

Not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
Since globalisation is now a reality, Fair globalisation would create opportunities for all, The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the people in the country. For instance, the government can ensure that labour laws are properly implemented and the workers get their rights. It can support small producers to improve their performance till the time they become strong enough to compete. If necessary, the government can use trade and investment barriers. It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.

For a long time foreign trade has been the main channel connecting countries. In history you would have read about the trade routes connecting India and South Asia to markets both in the East and West and the extensive trade that took place along these routes. Also, you would remember that it was trading interests which attracted various trading companies such as the East India Company to India.
To put it simply, foreign trade creates an opportunity for the producers to reach beyond the domestic markets, i.e., markets of their own countries. Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world. Similarly, for the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.
In general, with the opening of trade, goods travel from one market to another. Choice of goods in the markets rises. Prices of similar goods in the two markets tend to become equal. And, producers in the two countries now closely compete against each other even though they are separated by thousands of miles! Foreign trade thus results in connecting the markets or integration of markets in different countries.

The Indian government, after Independence, had put barriers to foreign trade and foreign investment. This was considered necessary to protect the producers within the country from foreign competition. Industries were just coming up in the1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up.
Starting around 1991, some far reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
Removing barriers or restrictions set by the government is what is known as liberalisation. With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export.

1. Meaning of Globalization: Globalization is the free movement of people, goods, and services across boundaries. This movement is managed in a unified and integrated manner. Further, it can be seen as a scheme to open the global economy as well as the associated growth in trade (global). Hence, when the countries that were previously shut to foreign investment and trade have now burned down barriers.
2. Dr. Manmohan Singh was the finance minister in the 1990s when globalization was fully implemented and experienced in India. He was the front man who framed the economic liberalization proposal. Since then, the nation has gradually moved ahead to become one of the supreme economic leaders in the world.
   
3. Below mentioned are some of the quick reactions which were felt after the introduction of globalization on Indian Economy:

• After 1991, the rise in GDP that dropped to 13% in 1991 -92 extended momentum in the following five years (1992-2001). Moreover, the annual average rate of growth in GDP was recorded to be 6.1%.
• Furthermore, export growth skyrocketed to 20% in 1993-94. For 1994-95, the figures were recorded to be 18.4 per cent. Export growth statistics in recent years have been very impressive.
  

The impact of globalization on Indian agriculture has been felt since colonial times. 

• Traders and travelers introduced new crop to the lands they traveled.
• It is believed that noodles travelled west from China to become spaghetti.
• Arabs traders took pasta to 5^th century Sicily, an island now in Italy.
• Many of our common foods such as potatoes, soya, groundnuts, maize, tomatoes,chillies, sweet potatoes and so on were not known to our ancestors. These foods were only introduced in Europe and Asia after Christopher Columbus accidentally discovered America. In fact many of our common foods came from America's original inhabitants -the American Indians.

The worldwide interconnectedness implies to interlink the world through the free flow of goods and services, technology, ideas and people across the globe to extend globalisation. This contains three components.