Globalisation-Concept, Policy Issues, and Reality.: Presented by

GLOBALISATION-
CONCEPT,POLICY ISSUES,AND
REALITY.
PRESENTED TO: PRESENTED BY:

DR. K.S.L.DAS ROMI KAUR -BM-010128
SHAIFALI SINGH-BM-010135
SHIKHA MISHRA-BM-010142
SHIKHA SINGH -BM-010143
SONAL PAL -BM-010149
VISHANT VOHRA-BM-010167
GLOBALIZATION
Globalization (or globalisation) describes the

process by which regional economies,
societies, and cultures have become integrated
through a global network of political ideas
through communication, transportation, and
trade.
 Globalisation and the Indian Economy

Indian companies get ready to go global
HISTORY
5 Stages of Globalisation-
 1st stage – 1400 to 1815

2nd stage – 1815 to 1914

3rd stage – 1914 to 1968
 4th stage – 1968 to 2001
 5th stage – Impact of technology

ADVANTAGES
Integration of markets-markets are interlinked


Chaeper products for consumers


Leads to outsourcing

Lowering of international barriers


Economy Development

Standardisation of product

DISADVANTAGES
Intense competition.

Widening gap between affluent and

underprivileged countries.
Harder for smaller business to establish

themselves.
Exploitation of workforce.


Income generated in host country is not
always spent in the same country.
MAIN MOTIVATIONS AND DRIVERS FOR
GLOBALIZATION
Improvements in transportation
z including
containerisation
Technological change

De-regulation of global financial markets


Differences in tax systems


Avoidance of import protection


Economies of scale

CONCEPT OF
GLOBALIZATION
The features of current phase of

globalisation includes:
NEW MARKETS
NEW ACTORS
NEW RULES AND NORMS
NEW(FASTER AND CHEAPER)
TOOLS OF COMMUNICATION
STAGES OF
GLOBALIZATION
 OHMAE identified five stages in the

development of a firm into a global
corporation.
I. Arm’s length service activity of essentially
domestic company which moves into new
market overseas.
II. In next stage company takes over these
activities on its own.
III.The domestic based company begins to
carry out its own manufacturing,
marketing, sales.
-Company moves to a full insider position in the
markets, supported by a complete business
system including R&D and engineering.
-Company moves towards a genuinely global

mode of operation. Getting onto this stage
means venturing onto new ground altogether.
ESSENTIAL CONDITIONS FOR
GLOBALISATION
 Business Freedom
Facilities
Government Support
Resources
Competitiveness
Orientation
FOREIGN MARKET ENTRY
STRATEGIES
Important foreign market entry
strategies are the following:
1. EXPORTING
1. LICENSING/FRANCHISING
1. JOINT VENTURE
1. DIRECT INVESTMENT
Globalization concerns have taken a far more positive
path since the 1999 Seattle protests.
The global economic crisis has prompted unprecedented

cooperation between the world's major economies with
the goal of standardizing and effectively regulating the
global financial markets.
Many of the less-developed countries have created the
greatest recent resistance to the global pressure to
reduce trade barriers through World Trade
Organization (WTO) agreements.
The World Bank is an organization affiliated with the

United Nations for the purpose of making loans to
developing countries, which are guaranteed. The bank
is self-sustaining and has maintained a profit on its
lending activities.
Countries are poor primarily because their human
resources are uneducated, poorly nourished and
underemployed.
Some economists argue that developing countries need
to rely on protective trade barriers in order to develop
industry. They suggest that in the 19th century, U.S.
industrial development relied heavily on these
protections.
European Union and the United States of America
together account for more than half of the global trade,
79% of the outward investment and 62% of the inward
foreign direct investment in the year 2003.
The term “offshoring” refers to the relocation of jobs
and production could be at a foreign country.
The United State continues to run an international

trade surplus in services, but business stories
frequently appear about service-sector jobs moving
offshore.
International trade in services covers a wide range of

industries and activities. Travel and transportation
includes travel expenditure, passenger fares, and
other transportation, such as freight and port services.
THANKYOU!

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GLOBALISATION-

PRESENTED TO: PRESENTED BY:

Globalization (or globalisation) describes the

 Globalisation and the Indian Economy

 1st stage – 1400 to 1815

 4th stage – 1968 to 2001

 5th stage – Impact of technology

Integration of markets-markets are interlinked

Chaeper products for consumers

Lowering of international barriers

Widening gap between affluent and

Harder for smaller business to establish

De-regulation of global financial markets

Differences in tax systems

Avoidance of import protection

The features of current phase of

 OHMAE identified five stages in the

-Company moves towards a genuinely global

The global economic crisis has prompted unprecedented

The World Bank is an organization affiliated with the

The United State continues to run an international

International trade in services covers a wide range of

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