Globlisation is considered as an important element in the reform package. The term globalisation has four parameters 1. Reduction of trade barriers so as to permit free flow of goods across national borders. 2. Creation of an environment in which free flow of capital can take place among national states. 3. Creation of environment permitting free flow of technology and .4. last but not the least, from the point of view of the developing countries, creation of an environment in which free moment of labor can take place in different countries of the world. the advocates of globalisation. More specially from developed countries, limit the definition of globalisation to only three components, viz unhindered trade flows, capital flows and technology flows. However several economists in the developing world believe that this definition is incomplete and in case the localizer’s ultimate aim is to look upon unrestricted movement of labour can’t be left out.