Foreign investment and its development in pre and post economic reform era in India
Globalisation can be summarised as opening-up of markets, leading to transfer of capital, technology and people. If globalisation is a progression in the international economic relations, it implies that capital flows are substituting trade flows. These capital transfers work as two way relationship, which implies that the process of globalisation should have gains for both the home country and the host country. With globalisation (WTO) and liberalisation international long-term capital flows in the form of FDI are promoted.