In simple terms, globalization refers to integration of world under the larger umbrella of global economy. The world becomes a closer, interconnected and interdependent with respect to availability of capital, goods and services across nations. It also implies opening of local and national markets to the global players.
The term globalization refers to the integration of economies of the world through trade, investment, knowledge sharing or technology transfer.
The boundaries of geographies are reduced and opportunities to collaborate for business are abundant. In Indian context, globalization refers opening up the economy to foreign direct investment by providing facilities to foreign companies to invest in different fields of economic activity.
The 1991 economic reforms mark the beginning of globalization in India easing out the constraints and obstacles to the entry of Multinational Corporation in India.
It also allows Indian companies to enter into foreign collaborations and encouraging them to set up joint ventures abroad.
Globalization is a process in which economies have become increasingly integrated and inter-dependent. It is dynamic rather than an end state. It is not inevitable – it can reverse, indeed the growth of world trade in goods and services slowed in recent years following the global financial crisis.