Globalization: Presentation By:-Akkul, Abhinav, Angad, Aman

Globalization
Presentation by :-
Akkul, Abhinav, Angad, Aman
Definition and Meaning
• Globalization is the system of interaction
among the countries of the world in order to
develop the global economy. Globalization
refers to the integration of economics and
societies all over the world. Globalization
involves technological, economic, political,
and cultural exchanges made possible largely
by advances in communication,
transportation, and infrastructure.
Advantages/ Merits of Globalization
• Lower Marketing Costs: If you are to consider lump-some cost then,
yes, it is high, but the same cost even goes even higher if the company
has to market a product differently in every country that it is selling.
• Global Scope: Scope of this kind of marketing is so large that it
becomes a unique experience.
• Brand image Consistency: Global marketing allows you to have a
consistent image in every region that you choose to market.
• Quick and Efficient Use of Ideas: A global entity is able to use a
marketing idea and mould it into a strategy to implement on a global
scale.
• Uniformity in Marketing Practices: A global entity can keep some
degree of uniformity in marketing through out the world.
Disadvantages of Globalization
• Inconsistency in Consumer Needs: American consumer will be different
from the South African. Global marketing should be able to address that.
• Consumer Response Inconsistency: Consumer in one country may react
differently than a consumer in another country.
• Country Specific Brand and Product: A Japanese might like a product to
have a traditional touch, where as an American might like to add a retro
modern look to it. In this case, a global strategy is difficult to device.
• The Laws of the Land Have to be Considered: Original company policies
may be according to the laws of home countries. The overseas laws may
be conflicting in these policies.
• Infrastructural Differences: Infrastructure may be hampering the process
in one country and accelerating in another. Global strategy cannot be
consistent in such a scenario.
Effects of Globalization
• Industrial - emergence of worldwide production markets and broader
access to a range of foreign products for consumers and companies.
Particularly movement of material and goods between and within
national boundaries. International trade in manufactured goods increased
more than 100 times (from $95 billion to $12 trillion) in the 50 years since
1955. China's trade with Africa rose sevenfold during 2000-07 alone.
• Financial - emergence of worldwide financial markets and better access
to external financing for borrowers. By the early part of the 21st century
more than $1.5 trillion in national currencies were traded daily to support
the expanded levels of trade and investment. As these worldwide
structures grew more quickly than any transnational regulatory regime,
the instability of the global financial infrastructure dramatically increased,
as evidenced by the Financial crisis of 2007–2010.
Effects(contd)…
• Economic - realization of a global common market, based on the freedom
of exchange of goods and capital. The interconnectedness of these
markets, however, meant that an economic collapse in one area could
impact other areas. With globalization, companies can produce goods and
services in the lowest cost location. This may cause jobs to be moved to
locations that have the lowest wages, least worker protection and lowest
health benefits. For Industrial activities this may cause production to move
to areas with the least pollution regulations or worker safety regulations.
• Political - some use "globalization" to mean the creation of a world
government which regulates the relationships among governments and
guarantees the rights arising from social and economic
globalization. Politically, the United States has enjoyed a position of power
among the world powers, in part because of its strong and wealthy
economy.
Effects
Political(contd)…
• With the influence of globalization and with the help of
The United States’ own economy, the People's Republic
of China has experienced some tremendous growth
within the past decade. If China continues to grow at the
rate projected by the trends, then it is very likely that in
the next twenty years, there will be a major reallocation
of power among the world leaders. China will have
enough wealth, industry, and technology to rival the
United States for the position of leading world power.
Effects on the Indian economy
Positive effects:-
• it brought in huge amounts of foreign
investments into the industry
• Reduction in the level of unemployment and
poverty in the country
• make the Indian Industry more technologically
advanced
Effects on the Indian economy
Negative effects:-
• increased competition in the Indian market
• reduced the amount of profit of the Indian
Industry companies
• with the coming of technology the number of
labor required decreased resulting in many
people being removed from their jobs
Examples
• Maruti Udyog – Suzuki collaboration:-
Maruti Udyog Limited, an Indian car major, makes
some of the most popular cars in India. Maruti
Udyog Limited (MUL) was set up in Feb 1981
through an Act of Parliament. Later, the company
entered into collaboration with Suzuki Motor
Corporation of Japan to manufacture cars in 1982.
The objective behind formation of Maruti Udyog
Limited was to produce comfortable and affordable
private means of transport.
Examples
• Cipla and Ranbaxy
Pharmaceutical giants Ranbaxy Laboratories and
Cipla on Tuesday 16th feb. 1999 announced a
strategic partnership to jointly market a select
basket of drugs. "The alliance between Cipla and
Ranbaxy will bring forth their strengths in the
strongly emerging cardiovascular segment and
the perennial anti-infective market," according
to a joint statement by the companies.

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