As how a coin has head and tail even this Globalization has pros and cons with respect to Developing countries.

Due to globalization, the domestic companies has to compete in the international market, which will enhance their skill set and their technology will be upgraded by looking into their foreign counterparts.
Also in order to compete in the global market, the domestic companies will push hard to become more competitive which will certainly boost our Indian economy too.

There is another school of thought,
As the country is still developing, is it beneficial for the domestic companies without establishing themselves in the developing market, going and competing in the international arena...this may eventually lead to domestic companies being thrown out of the competition, as the well established players will also enter the developing country's market with their skills and advanced strategies..

Topic: "Is Globalization Necessary for Developing Countries?"

I agree with what Natraj put forward.The domestic companies will have to compete with international competitors is a merit as well as demerit.Merit is that it will improve itself.Demerit is that it may not survive some times.

But I think globalisation is necessary for economical development of a country.The trends of one countries market will not be that of another country.For example in a country like India where the population is very high Life Insurance has great chances.Earlier it was done by LIC of India only and people enjoyed only minimum benefits.But by globalisation many companies came to India realising India's potential in this regard which eventually became an advantage to people of India.Now they have a number of companies to select with different types of policies with different advantages.This foreign companies has to put some investment also to enter the Indian market which will boost the economy of country also.

Ya as Abid pointed out, it definitely increases our economic growth rate.

But there is one more problem too, for the government..Before globalization, Every time if some economic factors has a negative impact on the economic growth of the country, the government can put some policies to bring back the economy in right track. But now due to the globalization, the governments have lost their dominance in the progress of the country's economy, as the economy of the country is dependent on the international market due to globalization and because of the interdependence on other economies, the government policies will not be able to control the dynamics of the economy of the country..

nataraj wrote:
[quote]
But there is one more problem too, for the government..Before globalization, Every time if some economic factors has a negative impact on the economic growth of the country, the government can put some policies to bring back the economy in right track. [/quote]

What are the economic factors that has a negative impact on our economic growth?

The economic factors can be inflation or deflation, Exchange rates, recession or depression...

According to me Globalisation is the need of the hour for every developing country.

For every developing country it is must that their activities are globalized. If their are no new companies and MNC's of other countries set up in a country which is developing then their will be very big problem of unemployment.

nataraj wrote:
[quote]The economic factors can be inflation or deflation, Exchange rates, recession or depression...[/quote]

Nataraj, They were the problems that existed and still existing.Before globalisation we heard about inflation only.Now we hear the news of both inflation and deflation.Exchange rates also were very poor regarding Indian Currency.Now the conditions have been changed.So will you say it is not due to globalisation.Really they are the impacts of globalisation.

Good topic to discuss!

well globalisation is the way to proceed over the ladder of the success thats gives the feeling of competition and that change changes the human living standard,take an example,britishers if not came to us we were could not be as much developed as now we are & that change creates a change which changed our lives.
remember the one thing that is constant is "change".

The current globalization processes bring both good and bad points:

good points:
#increase in trade
#inter-cultural communication
#new economic opportunities
#increase in international bussiness

bad points:
we have also globalized
#crime
#terrorism
#drugs
#arms trading
#prostitution
#child labour

globalization is necessary for our country to develop.but we should also think, due to globalisation only we are forgetting our indian culture.its good to move forward but it should not be on the cost of sacrifising our indian culture.

Abid!

deflation,exchange rates recession !

well if we define globalization then it is the "integration of world economies and societies" globalization is one of the reason that per capita income of our counrty has gone up. with our economy growing at a pace of 7.2 % even during recession year, we cant say that globalization in hampering our nation. Foreign direct investment has generated employment in our country and hence we can see that globe has just made us sound enough in this competitive world.

Sajeetharan,
You told it well.But I think the progress of our country India had dependance on many more factors.When recession trembled all the countries our country kept in a balanced level.Actually if globalisation was in full swing it should have affected our country also. But the economic policy that the central government follows for a long period had nullified the recession effect.

So I think globaisation as practiced by India is good for all the developing countries.

@Kalyani,
the topic seems a small confusion when read in two tones!It seems to be
1)Is Globalization Necessary for Developing Countries?(that is for development of a country)
2) Is Globalization Necessary for Developing Countries?(that is whether it is must for the countries named developing countries)

Which one you meant?

@ Sajeetharan ,
Very well wrote i must say, you are right globalisation has also globalized bad things like crime,terrorism,prostitution etc which is not good. Seeing that globalisation gives more benefits then some of its harmful things it causes it is must that every country must get globalised.

friends if there is more globalisation then in future there there may be no problem in any country as all countries will start helping each other. In future it may be that governments of different countries may unite and help to eradicate problems that are happening in the world.