GLOBALISATION

Presented By
Ansha Malar A. & Priya Dharshini V.G.
Globalization
• Globalization refers to the phenomenon of interaction and integration
of different aspects of economic activities, lifestyles and cultures,
ideas and thoughts among different countries in the world. The
process of globalization is aided by advancement in technology
• Globalization is the increasing interdependence, integration &
interaction among people and corporation in various locations around
the world
Threat Or Opportunity
• Globalization can be a force for good. It has the potential to generate
wealth and improve living standards. But it isn't doing that well at the
moment
• The benefits from increased trade, investment, and technological
innovation are not fairly distributed
• The experience of the international trade union movement suggests
that the reality for the majority of the world's population is that
things are getting worse
• Globalization as we know it is increasing the gap between rich and
poor
• This is because the policies that drive the globalization process are
largely focused on the needs of business
Key Players
• They are Multinational firms which carry out business across the
national borders
• The World Trade Organization (WTO) through which
INTERNATIONAL TRADE AGREEMENTS ARE NEGOTIATED &
ENFORCED
• The World Bank & International Monetary Fund (IMF) are means to
assist Government in achieving development aims through the
provision of loans, technical assistance
Stages In Globalisation
• Domestic company links with dealer & distributor. Company does the
activities on its own
• Company begins to carryout its own manufacturing, marketing &
sales in the foreign markets
• Company starts full fledged operations including business systems
and R&D
• At this stage the managers are expected to perform the tasks which
they were doing in domestic markets to replicate them in foreign
market
Conditions For Globalization
• Business Freedom : No unnecessary Government restrictions like
restrictions on sourcing of funds and other factors from abroad.
Hence the liberalization is the 1st step towards facilitating
globalization.
• Facilitators : Infrastructure facilitation available at home
country an help entrepreneurs go globally.
• Government support : Government support available in the form of
policy & procedure reform encourage globalization.
• Resources : Resources is an important factor which decides the
ability of affirm to globalize. They include finance ,technology, brand
image, company’s image, managerial expertise etc.,.

• Competitors : This is an important factor which company’s

success in global market bank on. The factors like low costs & price,
product quality, product differentiation, technological superiority.
After sales service, market strengths etc are few to name.
Reasons For Globalization
Firm operate internationally for a number of reasons:
• They may be seeking to secure better sources of raw materials &
energy
• They may want to obtain access to low cost factors of production
such as labour
• They may be attracted to certain countries because of subsidies
those countries provide
• They may be seeking new markets for their products
• Domestic markets may no longer be able to absorb production at
minimum efficient scale
Contd..
• They may be motivated by life style factors.
• Domestic markets become saturated .
• As they mature , firms look abroad for new opportunities. They may
be seeking opportunities for economies of scope & for lea
Entering global markets:
• There are a number of steps that need to be taken before you decide
to enter international markets
• Analyse the international marketing environment
• A PEST/STEP analysis needs to be conducted on the market you enter,
to assess whether it is worthwhile or not
Market Entry Methods
• After assessing the environment in your selected country, how do you
decide which are the best countries to enter? Following factors to be
considered before entering
• Speed – How quickly do you wish to enter your selected market?
• Costs - What is the cost of entering that market?
• Flexibility – How easy is it to enter/leave your chosen market?
• Risk Factor – What is the political risk of entering the market? What
are the competitive risk? How competitive is the market?
Contd..
• Payback period - When do you wish to obtain a return from entering
the market? Are there pressures to break even and return a profit
within a certain period?
• Long- term objectives - What does the organization wish to achieve in
the long term by operating in the foreign market? Will they establish
a presence in that market and then move onto others?
 Positive Implications

• Bigger Market
• Better & different choices
availability
• Better investment opportunities

Negative Implications

• Unemployment
• Financial insecurity
• Unequal opportunities
• Economic interdependence
Conclusion