(i) Since India lost its credit worthiness in the international market, the government mortgaged 40 tons of gold to the Bank of England.
(ii) Under these circumstances, the government for 1991 - 92 presented its budget in JuIy 1991 with a series of policy changes which underlined globalization, liberalization and privatization.
(iii) This has come to be called as India's new economic policy.
(iv) This policies were strengthened when India signed the Dunkel draft in 1994.
Reforms made to adopt Globalization (New Economic policy in India) :
1. Abolition of Industrial licensing, except for a few industries.
2. Reduction in the number of industries reserved for public sector.
3. Fixation of a realistic exchange rate of rupee to exchange exports of Indian goods.
4. Foreign private sector by making rupee convertible on trade, on current account and by reducing import duties.
5. Foreign exchanges regulations were suitably amended.
6. The statutory Liquidity Ratio (SLR) was reduced to increase rending by RBI.

Principles of Fair trade Organization :
(i) Creating Opportunities for Economically Disadvantaged Producers.
(ii) Transparency and Accountability.
(iii) Fair Trading Practices and Payment of a Fair price.
(iv) Ensuring no child Labour and Forced Labour.
(v) commitment to Non-Discrimination, Gender Equity and freedom of association.
(vi) Providing Capacity Building and promoting Fair Building.
(vii) Respect for the Environment.
Objectives of W.T.O:
(i) To set and enforce rules for international trade.
(ii) To provide a forum for negotiating and monitoring further trade liberalization.
(iii) To resolve trade disputes.
(iv) Introduction at the sustainable development and environment can go together.
(v) To ensure that developing countries, secure a better share of growth in world trade.
(vi) To resolve trade disputes.
(vii) To increase the transparency of decision-making processes.
(viii) Introduction sustainable development the development and environment can go together.
(ix) To ensure fuIl employment and broad increase in effective demand.

Expansion of Market territory:
MNC operations are large sized. So they need expanded physical boundaries.
Marketing superiorities:
i) A multinational firm enjoys a number of marketing superiorities over the national firms.
ii) It enjoys market reputation and faces less difficulty in selling its products and it adopt more effective advertising and sales promotion techniques.
Financial superiorities:
i) It has financial resources and high level of funds utilization.
ii) It has easier access of external capital markets.
iii) Because of its international reputation it. is able to raise more international resources.
Technological superiorities:
i)The main reason why MNCs have been encouraged by the underdeveloped countries to
participate in their industrial development is on account of the technological superiorities which
these firms posses as compared to national companies.
Product innovations:
MNCs have research and development facilities. They develop new products and superior designs of existing products.

(i) Too much flow of capital amongst countries, Introduces unfair and immoral distributors of Income
(ii) Another fear is losing national integrity Because of too much exchange of trade, independent domestic policies are lost.
(iii) Rapid growth of the economy has required a major infrastructure and resource extraction. This increase negative ecological and Social costs.
(iv) Rapid increases in exploitation of natural resources to earn foreign exchange.
(v) Environmental standards and regulations have been relaxed.

Goals of WTO:
(i) Raising and stabilizing the incomes of small scale farmers, farm workers and artisans.
(ii) More equitably distributing the economic gains, opportunities and risks associated with the production and sale of these goods.
(iii) Increasing the organisational and commercial capacities of producer groups.
(iv) Promoting labour rights and the right workers to organize.
(v) Promoting safe and sustainable farming methods and working conditions

(i) Sony Corporation
(ii) Hew left Packard (HP)
(iii) Tata Group
(iv) Microsoft corporation
(v) IBM
(vi) Nettle
(vii) Procter and Gamble
(viii) Pepsi company
(ix) The Coca-Cola company
(x) City group

Southern Indian trade guilds were formed by merchants in order to organize and expand their trading activities. Trade guilds become channels through which Indian culture was exported to other lands.
Early traders:
i) Kalinga traders traded with Southeast Asia at an early date.
ii) They traded in red coloured stones and cotton textiles.
European Traders in South India:
The trading activities of the various European companies which came to India during this period.
The Discovery of a new all-sea route from Europe to India Via cape of Good Hope by Vasco do Gama
had for reaching repercussions on the civilized world
The Portuguese:
i) Vasco da Gama landed at Calicut on the May 1498.
ii) The second visit of, Vasco da Gama led to the establishment of trading stations at Calicut, Cochin and Cannanore.
iii) Cochin was the early capital of the Portuguese in India.
The Dutch :
(i) The Dutch East India Company was formed in 1602.
ii) They established trading centres at Masulipatnam, Pettapoli, Devanampatinam and Pulicat.
iii) Pulicat was their headquarters.
The British :
(i) The English East India Company was established in 1600.
ii) They established trading centres at Masulipatnam and Pulicat.
iii) By the grant of "Golden Fireman" they were allowed to trade freely in their ports.
iv) In 1639 they built Fort St. George in Madras. It became their headquarters.
The Danes:
(i) The Danish East India Company arrived at India in 1616.
ii) Tranquebar was their headquarters.
iii) They failed to strengthen themselves and in 1845 they left India.
The French:
(i) The first French factory was established in 1668.
ii) The Dutch captured Pondicherry but was handed back to the French.
iii) In 1701, Pondicherry was the headquarters of the French

The term of 'Globalization' was introduced by Prof. Theodore Levitt. Globalization is the integration of Accountry with the world economy. Basically, globalization signifies a process of internationalization plus liberalization. The history of globalization can be discussed on three stages.
Archaic Globalization:
i) During the Hellenistic age an early form of globalization existed. It was known as Archaic globalization.
ii) The trade link between Roman empire, Parthian empire and Han dynasty made commercial links between these powers and inspired the development of the Silk Road.
iii) The Islamic age and the advent of Mongol empire facilitated travel along silk road. This pre-modern phase is known as archaic globalization.
Proto Globalization:
i) This phase was characterized by rise of maritime European empires like the Portuguese, the Spanish, the Dutch and the British empires.
ii) Globalization became private business phenomenon.
iii) The English East India Company was the first multinational company followed by the Dutch East India Company.
Modern Globalization:
i) The 19^th century witnessed the advent of Globalization approaching its modern form.
ii) The global trade in the 20" century shows a higher share of trade in merchant production, a growth of the trade in services and the rise of production and trade by multinational firms.