Abstract
Globalisation has a significant impact on the role of nation-state. Hyper globalists, sceptics, and liberals in the realm of international relations theory, contend that globalisation renders the state irrelevant, diminishes the state’s role, and erodes state power. The objective of this study is to analyse the impact of globalisation on companies in Malaysia and India. This article presents four case studies of companies operating in Malaysia and India to determine the impact of globalisation as well as evaluating the role of state and private sectors in moving forward economic cooperation. Given the structure of the goods and services trade between Malaysia and India, some analysts argue that the onus will be on the private sector to carry economic relations forward. This paper advocates that Malaysia strives to adopt a pragmatic approach, by trying to strike a balance between state intervention and withdrawal in economic matters, in order to achieve specific ends without affecting political stability and economic growth. In the case of Malaysia-India economic relations, it is apparent that the state is not only an important actor, but also a key driver. Indeed, the state is seen as a major supporter and beneficiary of economic and technological advances. Although challenges persist in terms of government regulations, bureaucratic red tape and state government policies, nevertheless business continues to thrive.
Highlights
Economic and trade relations have always been the driving force in Malaysia-India relations dating to the pre-Christian era (Indian High Commission of Malaysia 2014)
The most profound effect of globalization is to see how Malaysia and India position themselves in the global economy
Besides increasing its GDP via trade and investment, economic growth had expanded, thereby allowing both governments to provide the right environment for private links to be established
Summary
Economic and trade relations have always been the driving force in Malaysia-India relations dating to the pre-Christian era (Indian High Commission of Malaysia 2014). The world economy has internationalized its dynamics in which transnational corporations exercise significant control, and nation-states are no longer its principal actors or major agents (Mittelman 1997) Based on these features of economic globalisation, there are arguments that economic globalisation challenges the state especially the activities of the multinational corporations (MNCs), massive international financial flows and growth of international trade – which are supported by rapid technological advancement and development of communications. Wolf further suggests that despite the many economic changes that have occurred over the course of a century, neither the markets for goods and services nor those for factors of production appear much more integrated today than they were a century ago He further provides a counter argument to the view that the diminishing cost of communications, transportation, and advancement in telecommunications technology have contributed immensely to the globalisation process. Malaysia primarily focuses on roads and highways, telecommunications, oil and gas, power plants and human resources
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