If we analyze Globalization carefully we get to know that success or failure depends on the abilities and capabilities of our human resources. If we are able we can turn it to our advantage. If we prove ourselves incompetent we fail in the global market and our country becomes a country of retailers dealing in foreign goods, in other words a banana republic.

First let us analyze some of the disadvantages of globalization:

When a country globalizes its economy it links its domestic economy to the global economy. That means it throws the doors of domestic economy wide open to the MNCs. With the advent of MNCs domestic businesses feel the heat and fail to compete with resource rich MNCs. As a result many domestic businesses get closed down and people go jobless. On the other hand there is no guarantee that MNCs open their manufacturing centers and create opportunities. So the government has to face labor unrest.

The second thing is the MNCs may not invest in hi-tech areas as the host country expects. They may manufacture potato chips instead of Micro Chips. So the host country does not derive much benefit as far as technology is concerned. This provokes the intelligentsia to oppose globalization bitterly.

When we throw our domestic economy to FIIs they start investing in our stock market and our stock markets get affected by the global trends in stock indices. Markets turn volatile and many a time investors lose their hard earned money.

Globalization does not only influence the economy, but even the culture, traditions and life style. Indians feel as if they are in America when they visit Mc Donald's. There they eat burgers, French fries and drink colas, which are actually junk foods. It will have an adverse impact on the health of Indians and health care costs increase. Western music, garments, life style, family systems also show their influence on the host country. So the government has to face the opposition from the conservatives and nationalist political parties.

Protectionism is not allowed after we globalize our economy. There is a possibility of the markets of the host country becoming dumping grounds for foreign goods, and it will have wide ranging adverse consequences to the host country. At the same time the developed countries may clamp down many restrictions on our goods, on some or the other pretext and may harm our business interests.

Advantages:

But there are many advantages also, provided the domestic businesses have the capability to compete with MNCs and implement good corporate practices. It also provides us with an opportunity for our businesses to explore new markets for their products. Financially strong domestic companies can go for global acquisitions and it improves the prestige of our country.

Trade relations, to a great extent contribute to the friendly relations between different countries. So they act as a restraint on the belligerent nations.

The host country has to implement laissez-faire principle and reduce its intervention in business matters, but at the same time it can't remain as a mere spectator. It has to act as a regulator and protect the customer’s interests by curbing unfair trade practices.

Globalization, to some extent erases the boundaries and it facilitates the mobility of 3Ms- Men, Money and Materials.

But I don’t think that we can avoid globalizing our economy. In the 21^st century, in this age of information revolution it is very harmful for our country if we refuse to mingle with other nations and isolate ourselves.