The economy of India has the features of both socialistic and capitalistic economy. The economy was stratified into sectors entirely reserved fro the government and sectors reserved for the private. The government had a strict control over the business community through the licensing and reservations. The economy of India in 1980s was mostly dependent on the foreign borrowings. "In June 1991 India's condition on foreign exchange reserves was poor and precarious. India made a proposal for a loan of US$ 2.26 billion from the IMF. In view of the destitution that the country was in, it had no alternative than to succumb to the World Bank-IMF prescription in embarking on the so-called stabilization and structural adjustment programmes as a precondition to loan. The World Bank was ready with its proposed 'Strategy for Trade Reform'. As a result, thus, India introduced the New Economic Policy (NEP) in 1991" (Mishra, 2006). India started its trade liberalization and globalization hand in hand out of compulsion to survive. As a result, the major reforms that were introduced were:
The above mentioned measures were some of the prominent introduced by the government. But these measures were heavily criticized by the conservative leftist parties. It was predicted that India would be flooded by foreign made goods and the local industry would be crushed. Among emerging market economies, India is considered as a location of consequence for foreign firms because of prospective opportunities that arise for reasons such as the market size referred to and human resources. The high talent and relative low cost of Indian managers can make the transfer of capabilities easier to Indian subsidiaries, reducing the need for expatriate staff and increasing the feasibility of using Indian subsidiaries as an export platform (Cable, 1995). Though globalization in India had its bumps, the economy is now reaping the benefits of globalization. The economy has become stronger and Indian companies have started to set up operations bases out of India( Chibber, 1999). Though globalization was able to give the much needed boost to the docile economy, the benefits of the process is mostly enjoyed byt the urban mass and there is very little benefits enjoyed by the rural India.
Globalization in Brazil
Brazil is a growing economy in its path of development through its effective globalization initiatives. According to Richard L. Harris, in order for globalization to occur, a country must partake in a global process of cross-borders flows of products, services, capital, people and information(Harris, 2005). The three most prominent areas of change in the Brazilian economy are the agricultural changes, military weapons development and overseas construction. (Sanchez, 2005). Before globalization Brazil was concentrating on its only cash crop, Sugar. But due to the availability of modern technology, the land area available for agriculture has increased and Brazil has become one of the agricultural superpower with regard to oranges