Globalization is considered as an important element in the reform package. The term globalization
constitutes four parameters.
1. Reduction of trade barriers so as to permit free flow of goods across national frontiers.
2. Creation of an environment in which free flow of capital can take place among nation states
3. Creation of environment, permitting free flow of technology
4. In the case of developing countries, creation of an environment in which free movement of labour can take place in different countries of the world.