Glo.

BE - Unit I
A peep into our consumption basket

Decoding
The average consumption basket is not untouched by foreign
influence/linkage

Corollary
The average production space is not untouched by foreign
influence/linkage
The 21st century’s biggest achievements, in 10 charts
https://www.livemint.com/news/india/the-21st-century-s-biggest-achievements-in-10-charts-
11578235340785.html

Decoding
The world has made significant changes in material and non-material
aspects
Most of the changes are positive
Uncertainties about future persist
 Globalization
Meaning, Causes, Facilitators, Trends,
Implications
Wimbledon Tennis
Balls
A GLOBAL PRODUCT
Domestic businesses vs.
Global businesses
GROUP DISCUSSION
Basis of contrast: Domestic business vs. Global
business
Physical factors
◦ Geography
Socio-economic factors
◦ Cultural/political/legal/economic environment
Markets
◦ Competitors, substitutes, suppliers, buyers
Globalization - Causes

 Gains/benefits of globalization

 Constraints of domestic boundaries/nation economy

Globalization - Facilitators/Drivers
Technological change
Reduced trade barriers
Increased consumer awareness/pressure
Changed political situations
Increased bilateral and multilateral cooperation
 Globalization - Trends
1492: Christopher Columbus reaches the Americas in search of spices; 1498: Vasco da Gama
makes an end run around Africa
1850-1914: Steam engine, telegraph, electricity, Colonization, UK-world leader, relatively free
labour and capital movements
1914-1945: Retreat into nationalism
1945-1980s: Jet planes, television, US-economic powerhouse, regulation of labour and
capital movements
1980 onward: Computer, internet, mobile phone; Globalization defined the 1990s, ease in
labour and capital movements
2000: Greater inclusion of developing nations; Hints of de-globalization visible 2015 onward
Globalization - Implications
Good Bad
For the producer Flight of jobs
– Cost advantage Income inequality
– Markets/ revenue/ goodwill
Undermining national sovereignty
For the consumer
– Options/ product quality Dilution of national culture
For the economy Environmental problems
– Income/ employment/ standard Overflow of national crisis
of living
 GLOBALIZATION AND HEALTH: A CASE
STUDY OF PUNJAB
http://humangeographies.org.ro/articles/51/5
_1_11_3_sinha.pdf
Revisit
There is a very very low possibility that somebody in the world today is not
influenced by globalization
Meaning of globalization
Domestic business vs. Global business
Causes of globalization
Trends of globalization
Facilitators of globalization
Impact of globalization
Decision making at the time of entry
•Which markets to enter?
–Long term profit potential
–Costs
–Risks
•When to enter?
–Early
–Late
•How to enter?
•At which scale to enter?
–Large scale
–Small Scale
Possible modes of entry into global
markets
Importing/Exporting
Outsourcing
Licensing
Franchising
Countertrade
FDI
If the world were a 100 people
HTTPS://WWW.YOUTUBE.COM/WATCH?V=QFRQTFRY-LU
Suggested reading
International Business: Environments and Operations
John D. Daniels, Lee h. Radebaugh, Daniel P. Sullivan and Prashant Salwan
Edition 12; Pearson Publication
Part One
Chapter 1 - Entire