Business Ethics and Corporate Governance, Second Edition

IMPACT OF GLOBALizATION

With the gradual opening up of the Indian economy, increasing importance of foreign portfolio investment in the market and drastic reduction in import tariffs that has exposed Indian companies to foreign competition, Indian capital market is acquiring a global image. Till recently, participants in the Indian capital market could, to a large extent, afford to ignore what happened in other parts of the world. Share prices largely behaved as if the rest of the world just did not exist. However, now the that Indian capital market responds to all types of external developments, such as US bond yields, the value of the Euro or for that matter of any other currency, the political situation in the Gulf or new petrochem capacity ...