How did the Bretton Woods system collapse giving birth to Globalisation?
- (i) Despite years of stable and rapid growth, not all was well in the post-war world.
- (ii) From the 1960s, the rising cost of US overseas involvement weakened its financial and its competitive strength.
- (iii) The US dollar now no longer commanded confidence as the world’s principal currency.
- It could not maintain its value in relation to gold.
- This ultimately led to the collapse of fixed exchange rates and the introduction of a system of floating exchange rates.
Describe the impact of globalisation on Indian Agriculture.
- The impact of globalisation in India could be traced back to colonial times.
- There were two main important export items from India – raw cotton and spices.
- There was a revolt in 1917 by the Indian farmers in Champaran as they were forced to grow indigo in place of food grains in order to supply ‘dye’ to Britain’s flourishing textile industry.
- Hence, globalisation has had its blessings and curses for Indian agriculture.
- Though the situation changed for the Indian farmers post liberalisation, they faced new challenges in the form of competition from highly subsidised agriculture of developed nations.
Globalisation and greater competition among producers both loan and foreign producers has been of advantage to consumers, particularly the well-off section of the urban areas
- As a result, they enjoy much higher standard of living than was possible earlier. Among producers and workers, the impact of globalization has not been uniform
- MNCs have increased their investments in India over the past 20 years, which is beneficial for them.
- Their products are cell-phones, automobiles, fast food, etc
- These products have large no.of buyers and these industries have created new jobs too.
- And local companies supplying raw materials, etc. to them have prospered.
Impact of globalization on India
- 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 methods and production standards.
- Globalisation has enabled some large Indian companies to emerge as multinational themselves – eg. Tata, Asian Paints, etc
The Struggle for a fair globalisation
Q. Evaluate the measures to make globalisation more fair.
- (i) Fair globalisation would create opportunities for all, and also ensure that the benefits of globalisation are shared better.
- (ii) The government can play a major role in making this possible. It needs to frame policies for all.
- (iii) Government can ensure that labour laws are properly implemented and the workers get their rights. Benefits of globalisation are shared better.
- (iv) It can support small producers to improve their performance till the time they become strong enough to compete.
- (v) It can negotiate at the WTO for fairer rules. Massive companies and representation related to trade and investment at WTO can be encouraged.
- (vi) It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
- (vii) If necessary, the government use trade and investment barriers.