Economic effects of globalization : 

The economic effects of globalization are as follows :

1. The highest impact of globalization lies on the world economy. Western capitalist countries are trying to find markets for their products in Asia and Africa. 

2. The World Bank, the International Monetary Fund and the WTO are playing an active role in determining economic policies in the world. Now other groups, institutions such as multinational corporations are also playing their role with these international organizations. Earlier this was done mainly by international organizations. 

3. Due to globalization the economic flow has become fast among the countries of the world. This flow can be both voluntary or imposed. 

4. Countries have relaxed their import restrictions. For example, capitalist countries are investing in other countries where they can earn profit. 

5. In comparison to the flow of good and capital, transmigration of people is still limited because some countries are not ready to relax their visa policy. 

6. Due to globalization, different countries adopted trade and capital investment policies (economic policies) at the same time, but it has different effects in different countries. 

7. The states have been reducing their responsibilities. It has encouraged privatization and liberalization. And in the field of social and economic justice, role of the states has decreased. 

8. In economic field, interdependence among countries has increased. 

9. Globalization has brought communication revolution in the world. Now the impact of national borders has come to an end. Internet and computer related services such as banking, online shopping, commercial transactions etc have become very easy.

Impact of globalization on India : 

Globalization was started in India in July 1991 by the then Prime Minister, P.V. Narsimha Rao. India adopted new economic policy in 1991 and became the part of globalization and liberalization.

In 1992, the Rupee was made fully transferable, and steps were taken to reform the capital market and financial policy. Importexport policy has been amended. The restrictions have been removed. India signed an international agreement on Dec. 30, 1994. On January 01, 1995 World Trade Organization was established, India signed it and became its member. After signing the agreement India started eliminating many rules and formalities which had been a hindrance in the economic growth for years.

Globalization has provided many options to Indian products and services. And Indian customers get products of high quality at low price. Customers get goods and services of international standard. Due to globalization foreign investments in India have increased which have increased production and employment opportunities in India.