Topic > How Globalization Affects the Rubber Industry

IndexRubber: A Brief HistoryGlobalizationHow Globalization Affected the Rubber Industry in KeralaReferencesRubber: A Brief HistorySince Columbus discovered America in 1495, Indians and ancient tribes of South America called the rubber "Caoutchouc". Its meaning is "Weeping Tree". The reason is that when it is cut with sharp tools, its natural latex comes out like a tree tear. Rubber is a tall, fast-growing tree that begins producing 5-7 years after planting. Rubber and its products play an important role in our daily lives. This tree is described as nature's most versatile crop. So the demand for rubber will continue to increase. It is used for various purposes; for erasing pencil marks, for making tires and for making other industrial products and reaches the market as useful products. Rubber is used by almost all sectors as well for various industrial purposes. Unlike other products, rubber products have a long life and unlike other plants rubber gives the best results year after year for around 20 years. India is one of the top ten rubber producers in the world. Kerala is the major rubber producing state in India. Rubber is the main source of income for many farmers. Kottayam is the main rubber producing district of Kerala and hence it is called "Land of Latex". Rubber Board, a central government research institute is located in Kottayam. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay GlobalizationThe term “Globalization has come into use since the 1980s.” Globalization at this stage can be defined as the process of deeper integration between countries and regions of the world resulting in increased cross-border trade of goods and services. Globalization has played a significant role in the development of the world economy. It increased the ratio between nations in trade and other services. Globalization benefits developed countries more than any other country. It has many positive impacts, but there are some negative impacts for globalization which has affected developing countries. Globalization has suppressed many traditions. It also made a big difference in the division of the world. Effects of Globalization Globalization has severely affected developing countries. In the case of trade, developed countries with a comparative advantage in products over others export products to different countries, including countries that produce the same commodity, at lower costs than they could obtain it from their own country. This decreases the demand for the products manufactured there and they are forced to sell their products at a lower cost since there is importation of the same. And then he would be helpless and would have to stop production. This can cause unemployment. Due to the fear of this failure, people choose white caller jobs. This leads to the failure to produce the raw materials necessary for our daily use. It leads to an exchange for which we have to pay a huge amount. Globalization puts agriculture at risk! Globalization puts agriculture at risk – HINDU – Agriculture faces the greatest risk from intensifying globalization. The volatility of international prices of agricultural raw materials has a direct impact on the country. Among the hardest hit are tropical agricultural products, such as those produced by Kerala, of which large quantities are exported. The agricultural sector is the one most affected by globalization. It's at risk. The raw materials produced here have no demand in Indiasince they are imported at lower costs. Producers have big problems because of this and are forced to stop cultivation because there is no profit, only loss. Especially the farmers of Kerala are going through a very difficult time due to the sharp drop in prices due to globalization. The products bred by them have no demand in the market. But it was intended to promote indigenous goods produced in Kerala. It later deviated and started importing goods that are even produced in our country. Gradually the quantity of products decreases with the surface area of ​​cultivated land. So Kerala now depends on other states for goods which mainly include rice, wheat, spices, vegetables and fruits. How Globalization Has Affected the Rubber Industry in Kerala In the case of rubber, the problem arose due to the import of rubber while we had enough production of it. Malaysia, Indonesia, Philippines and Thailand are some of the other countries that produce and export it. India has an absolute lead in rubber production. But it is imported from other countries as they require lower cost. So the demand for Indian rubber decreases and it is a big loss for the manufacturers, workers and the Indian economy. Here, what happens is a modern or reformed form of mercantilism: a zero-sum game where only the exporting country is the beneficiary and India has no profits, but loses economy. These countries are engaged in trade at the expense of India. Indian rubber producers don't even get the money they invest in rubber cultivation. Latex goes through a different process before the owner sells it on the market. The process includes tapping, filtering, etc. Through the tapping process, latex is collected from rubber trees and is aggregated in a tray by adding acid. The clotted latex is rolled into sheets in a mill to remove water and then smoked and dried. These are considered to be the initial process, performed by rubber planters. But when the final product of this process is sold on the market, the producers do not even receive the money to give to their workers. So the planter has abandoned this and what most of them do now is to pat in two or three days and collect the dried latex, they will dry it again and sell it without doing any other process. Now, most of the rubber farmers of Kerala depend on other sources for their livelihood. Then the import of rubber increased further. Please note: this is just an example. Get a custom paper from our expert writers now. Get a custom essay. India conditions can be related to this table. India had a comparative advantage in rubber production, but it was imported from other countries. India does not profit but losses and hence it can be called a reformed form of mercantilism. Lower demand for rubber in India has led the market to reduce its cost and is still a big problem for farmers today. Automobile companies were the main consumers of rubber. They got rubber cheaper from other countries and depended on them for more. If this condition continues, the Indian economy will collapse due to unemployment, lack of production of necessary resources and change in the price of raw materials. A nation with sufficient resources is a utopian theory. But it is essential to have an advantage in raw material production over other nations to balance the economy. References Ge, Y. (2009). Globalization and industrial agglomeration in China. World Development, 37(3), 550-559./123/15893)