Globalization Definition &amp Pro's &amp Con's

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Globalization

The World City

By A.Rhman Attia Tantawy

1
WHAT IS GLOBALIZATION?

As Globalization progresses , economics social and


political of different countries more freely interacts
with one another and adapt to promote further
interaction.

2
PARTS OF GLOBALIZATION

There are four main parts

globalization
globalization globalization globalization
of human
of economy of culture of politics
flows

3
REGIONAL ECONOMIC INTEGRATION

Free
Customs Common Economic Political
Trade
Union Market Union Union
Area

4
LEVEL OF GLOBALIZATION International
Marketing

5
LEVEL & INDICATORS OF
GLOBALIZATION
 WORLD LEVEL GLOBALIZATION-
 Foreign Direct Investment
 GDP
 Multinational Companies
 Foreign Exchange
 Foreign Exchange Markets
 Balance of Payments (BoP)

 COUNTRY LEVEL GLOBALIZATION-

 National Income
 Investment Income
 International Tourism Traffic
6
LEVEL & INDICATORS OF
GLOBALIZATION
 INDUSTRY LEVEL GLOBALIZATION -

 Industry Exports
 Foreign Investment in Industry
 Investment Income

 FIRM LEVEL GLOBALIZATION-

 Entry to Foreign Market


 International Licensing
 Joint Venture

7
GLOBALIZATION TRENDS

Reduction in Import tariffs

Removal of quantitative restriction

Liberalization of Entry of Multinational


Corporation

Convertibility of money on Current Account


8
RECENT MEASURE TO PROMOTE
GLOBALIZATION

Foreign Investment
Trade measure
measure

Foreign portfolio External commercial


management borrowing

9
BENEFITS & COST OF International
Marketing
GLOBALIZATION

10
BENEFITS OF GLOBALIZATION

Free interchange of
Faster economic
ideas, values; new
growth
opportunities

Better living standards Democratization

11
COST OF GLOBALIZATION

Greater
risk/variance in
outcomes

Greater income
Social dislocation
inequality

12
CHALLENGES OF International
Marketing
GLOBAL DIVERSITY

13
Challenges of Global Diversity

 Diversity and complexity of systems that


transnational corporations face creates challenges,
for example
 If a company does business in a nation that does
not grant women equal rights, should that company
hire and promote women at work, even if it violates
local laws and customs?
 Should a company enter into a business venture
with a government-owned enterprise if that
government has a reputation for violating its
citizens’ human rights?
14
Globalization : Good or Bad?

 Economic globalization is good because

Big firms means more efficiency

A bigger economic market share

Free movement of money means that LDCs can develop

15
Globalization : Good or Bad?

 True : the world economy is bigger & more of the


world can afford modern consumer goods
 Other positive benefits include the transmission of
common values on human & civil rights, democracy
and exposure to culture diversity
 Resistance movements are in one sense a symptom
of the wider process

16
THANKS International
Marketing
A . R H M A N A . TA N TAW Y
AX.TANTAWY@GMAIL.COM

17

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