GLOBALIZATION

Presented by ARCHANA RAJAN ARUN B ARUN GOPI

Meaning
It refers to the process of integration of the world into one huge market. The movement towards the expansion of economic and social ties between countries through the spread of corporate institutions and the capitalist philosophy that leads to the shrinking of the world in economic terms.

Advantages of Globalisation
Goods and services:- as market become global, more goods and services are made available at lower cost to a wider group of people. Free flow of capital:- globalization enables the free flow of capital from one country to another country. Higher standard of living:- globalization reduces the price and thereby enhances consumption and standard of living of people

Disadvantages of globalization
Increase in industrialization:- free flow of capital along with the technology enable the developing countries to boost up industrialization in their countries. Increase in production:- increased industrialization and speed up of technology enables the companies to produce and sell their products of high quality at low price.

Disadvantages
Reduce jobs and incomes Infrastructure Risk and uncertainty Poor labour practices and environmental policies

Components of globalization
Globalization of markets Globalization of production

Globalization of investment

Globalization of technology

Globalization of markets It refers to the process of integrating and merging of the distinct world markets in to a single market Globalization of production Manufacturing facilities are more favourable in foreign country than home country, it enables the company to produce the product of high quality at low cost.

Globalization of investment It also known as foreign direct investment , FDI occurs when a firm invest directly in new facilities to produce and/or market a product or service in a foreign country. Globalization of technology Companies with latest technology acquire distinctive competencies and gain the advantages of producing high quality products at low cost.

Stages in globalization
Domestic company
International company
Multinational company
Global company Transnational company

Domestic company: the company focuses on domestic market, domestic suppliers, and domestic competitors. Intnatl company: these companies extend mktng and manufacturing activity outside the home country. Multinational company: company formulates strategy for each country in which it conducts business.

Levels of globalization
World level globalization

Firm level globalizatio n

Industry level globalization

Country level globalization

World level: globalization process begins with intnl economic, social, and political relation b/w the countries. Country level:

Changing Nature Of Indian Business Environment

A radical and rapid changes in the Indian business context since independence in 1947. Although moderate and steady growth occurred in the 1950s. Then the international oil crisis triggered the 1991 balance of payment currency crisis in India.

In recent years, Indias role as driver of worldwide economic growth has been recognized. The present decade is characterised by intense competition in the business world. Companies across the world are attempting to grapple with the changing business environment.