Evolution of Globalization Essay

The term globalisation denotes globe as a maven grocery store.Product presence in different Markets of the world.Production base ball upwise the globe.Human resources from all over the world.International investmentTransaction involving IPRs.The orgasm in ICI(information, communication and technology) Rapid economic liberalization of occupation and investmentThe mobility of people and transactional movesThe reach of satellite channels, internet etc.CONCEPT OF globalizationIMF defines globalization as The growing economical interdependence of countries worldwide finished increase in volume and mutation of cross border minutes in goods and services and of international neat run fors and also by dint of the to a greater extent rapid and wide spread diffusion of technology Charles Hill defines globalization it is a shift towards more integrated and interdependent world miserlinessIt has two components1. globalization of markets2. Globalization of toilGlobalization refers to the free cross border movements of goods and services, capital, information and people. It is the process of creating network connections among the actors of multinational distances mediated through a variety of flaws. Westernatization, wallmartization, Americanization, Mcdonalization, disnaffication, coco-colonizationFACTORS AFFECTING globalisation/ DRIVERS OF GLOBALIZATIONestablishment of GATT(General sympathy of trade and tariff) and WTO regional integrationNAFTA, ASZN, European union, SAARC, OPEZ, European integration declining trade barriers-tarrifs and quotasgrowth in foreign direct investmentadvancement in technologyemergence of international monetary fund.COMPONENTS OF GLOBALIZATION1. Globalization of markets2. Globalization of production3. Globalization of investment4. Globalization of technologyGlobalization of markets consolidation and merging as the world market a s exclusive market.FeaturesSize of the companyMarket for non-consumer goods, industrial goods and fin ancial goods. Different strategies take for different marketsReasons for globalization of marketsLarge scale industrialization and mass productionTo reduce the risk and to diversify the portfolio.To increase the profitThe failure of municipal companiesAdverse business environmentGlobalization of productionReasonsCheap bare-ass materials, cheap labour and high qualityImposition of restriction on importsReduce the cost of transportationGlobalization of technologyRevolution in telecommunication, information technology and transportation technologyADVANTAGES / DISADVANTAGES OF GLOBALIZATIONADVANTAGESFree flow of capital, tecnology etcIncrease in industrializationSpread of production facilitiesBalance cultivation of world economicsIncrease in production and consumptionCommodities with freeze off price and high qualityCultural exchangeDemand for variety of productsIncrease in job and incomeHigh living standardsBalance gentleman developmentEconomic liberalizationDISADVANTAGESIt kill s domestic businessExploit world resourcesLeads to unemployment and under employmentDecline in incomeTransfer of natural resources bailiwick sovereignty at country stake.Leads commercial and political colonizationThe set out between the rich and the poorThe developing and under-developing countriesUnemployment and mass layoffAdverse equaliser of paymentVolatile of marketsLoss of cultural identityShift of big businessman to multinationalsEffects of globalizationThe globalization may be defined as the process of integration and convergence of economic, financial, cultural and political system crossways the worldECONOMIC GLOBALIZATIONinternational trade, investments and capital flawsintegration of economicscross border movements of goods and services, technology and capital.FINANCIAL GLOBALIZATIONliberalization of capital movementderegulation of financial systemscross border capital flows inclination in international changes.CULTURAL GLOBALIZATIONIt is the convergence ofculurePOLI TICAL GLOBALIZATIONAfter the world war 2, the convergence of the political system The solution strategies to globalization forces for emerging companiesDEFENDERThe pressure sensation to globalization is lowUnderstands the kin market or the strength lies in deep understanding of the market or their competition assets are customized to local market. The company should adopt defending strategy that focuses on leveraging the local assets in the market fraction where internationals are weak eg Videocon washing motorcar introduced semi automatic machineEXTENDERwhere the industrial pressure to globalization is low.They possess competitive skills and assets that can be transferred abroad Companies can focus on expanding to markets similar to home canonical using competencies developed at home. Ex haldiramDODGERwhere the industry pressure to globalization is very high.To compete in industries with globalization pressure is passing difficult situation for local companies.CONTENDERHigh pressure to extend and transferrable abroad and competitive advantage that can be leveraged foreign by upgrading the capabilities and resources.