Evolution of Globalization Essay

The term globalization denotes globe as a single mart.Product battlefront in different grocery stores of the cosmea.Production cup of tea a get over the globe.Human resources from all over the public.International investmentTransaction involving IPRs.The approach in ICI( learning, communication and engine room) Rapid sparing liberalisation of trade and investmentThe mobility of nation and transactional movesThe reach of satellite channels, internet and so forthCONCEPT OF globalizationIMF defines globalization as The growing economical interdependence of countries ecumenic through increase in tawdriness and variety of cross fence transactions in goods and services and of international uppercase f low-spiriteds and also through the more speedy and wide spread diffusion of engine room Charles Hill defines globalization it is a conjure towards more integrated and interdependent world economyIt has two components1. globalisation of markets2. globalisation of turnoutGlo balization refers to the free cross border movements of goods and services, pileus, information and people. It is the process of creating meshing connections among the actors of multinational distances mediated through a variety of flaws. Westernatization, wallmartization, Americanization, Mcdonalization, disnaffication, coco-colonizationFACTORS AFFECTING globalization/ DRIVERS OF globalizationestablishment of GATT(General Agreement of trade and tariff) and WTO regional consolidationNAFTA, ASZN, European union, SAARC, OPEZ, European integration declining trade barriers-tarrifs and quotasgrowth in opposed direct investmentadvancement in technologyemergence of international fiscal fund.COMPONENTS OF GLOBALIZATION1. Globalization of markets2. Globalization of production3. Globalization of investment4. Globalization of technologyGlobalization of markets integrating and merging as the world market a s single market.FeaturesSize of the companyMarket for non-consumer goods, industrial goods and pecuniary goods. Different strategies take for different marketsReasons for globalization of marketsLarge scurf industrialization and grass productionTo down the risk and to diversify the portfolio.To increase the advanceThe failure of domestic companiesAdverse logical argument environmentGlobalization of productionReasons insolent raw materials, cheap labour and blue 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 etc outgrowth in industrializationSpread of production facilities dimension development of world economics amplification in production and consumptionCommodities with start price and high qualityethnical exchangeDemand for variety of productsIncrease in job and incomeHigh backing standardsBalance human development economical liber alizationDISADVANTAGESIt kills domestic business tip human resourcesLeads to unemployment and under employment decline in incomeTransfer of natural resources study sovereignty at country stake.Leads commercialized and political colonizationThe divide mingled with the rich and the poorThe developing and under-developing countriesUnemployment and mass layoffAdverse balance of payment volatile of marketsLoss of heathen identity evoke of power to multinationalsEffects of globalizationThe globalization may be defined as the process of integration and convergence of economic, financial, cultural and political system across 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 lean in international changes.CULTURAL GLOBALIZATIONIt is the convergence ofcu lurePOLITICAL GLOBALIZATION afterwards the world war 2, the convergence of the political system The response strategies to globalization forces for acclivitous companiesDEFENDERThe thrust to globalization is lowUnderstands the home market or the distinctiveness lies in deep understanding of the market or their competition assets are customized to topical anaesthetic anaesthetic market. The company should adopt defensive outline that focuses on leveraging the local assets in the market segment where internationals are frail eg Videocon washing machine introduced semi unbidden 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 basic exploitation competencies developed at home. Ex haldiram dodgerwhere the industry pressure to globalization is truly high.To compete in industries with globalization pressure is highly difficult s ituation for local companies.CONTENDERHigh pressure to extend and transferrable abroad and competitive returns that can be leveraged overseas by upgrading the capabilities and resources.