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Global Is at Ion
Global Is at Ion
SUBMITTED BY
V. KAMALA DASAN
MHR/09/16
MAHRM II YEAR
There is much more general acceptance now that globalization is a reality that is effecting
fundamental changes in the world.
INTRODUCTION
Indian’s economic integration with the rest of the world was very limited because
of the restrictive economic policies followed unit 1991. Indian firms confined
themselves, by and large, to the home market. Foreign investment by Indian firms was
very insignificant.
With the new economic policy ushered in 1991, there has, however, been a
change. Globalization has in fact become a buzz-world with Indian firm now and many
are expanding their overseas business by different strategies.
This section takes a look at the hurdles to and prospects for globalization of
Indian business and different globalization strategies.
The Indian business, however, suffer from a number of disadvantage in respect of
globalization of business. Not only that the government lacks a positive orientation in
some respect but also the government policy and procedures in India are among
the most complex, confusing and cumbersome in the world.
Another problem is that the high Cost / inadequacy of many vital inputs and other factors
like raw material and intermediates, power, finance, infrastructure facilities like port etc.
tent to reduce the international competitiveness of the Indian business. There are also
problems related to technology, small size and lack of experience of firm, poor quality,
lack of R&D efforts etc.
Although Indian has several handicaps, there are also a number of favorable
factor for globalization of Indian business. These include the human recourses; growing
entrepreneurships; growing domestic market; the growing of foreign market opening
more and more large number of non resident Indians who are recourse etc.
If the Indian firms have the facilities to obtain higher technology in the world,
they are not equal footing with the foreign firm in many respects. An if the Indian firms
can muster some edge even the foreign firms in respect of labors cost, productivity,
product quality/feature etc. that could be competitive advantages.
ESSENTIAL CONDITION FOR GLOBALIZATION
There are some essential conditions for satisfied on the part of domestic economy
as well as the firm for successful globalization of the business.
Business Freedom: There should not be unnecessary Government restriction which
come on way of globalization, like import restriction & finance or other factor from
abroad, foreign investment etc. that why the economic liberalization is regarded as a first
step towards facilitating globalization.
Facilities: The extents to which an enterprise can develop globally from home
country base depend on the facilities available like the infrastructure facilities.
Government Support: Unnecessary government interference is a hindrance to
globalization, government may encourage to globalization. It support by policy and
procedure reform, development of common facilities like infrastructural facilities, R&D
support, finance, market.
Resources: Resources is the one of the most important factor which decides the
ability of the firm to globalize resourceful companies may find easier to thrust in the
global market. Resources include finance, R&D facilities, technology, human resources
etc. some small scale companies may get successes in international market due to other
advantages.
Competitiveness: The competitive advantage of the company is very important
determinants of success in global business. A firm may derive competitive advantages
from any one or more of the factor such as low cost and price, product quality,
technological superiority, marketing strength etc.
Sources of globalization: six interconnecting Spheres
The world today is organized principally around nation-states that operate within
different political infrastructure. At the heart of virtually every political system is the need
to balance between individual and collective interests. The shift from command to market
principles in many nations and the propensity of nation to privatize state-owned enterprises
indicates that many governments believe free market can help them achieve the individual
balance. But this is difficult to do on a worldwide scale because every government has
created different rules, standards, and regulation to address issues like taxes, tariffs, and
business activities.
On a worldwide scale, creating a common and global “good” society involves many
more than governmental actors in the political environment. Intergovernmental
organization, nongovernmental organization, businesses, and members of global gangs,
pirates and terrorist organization also shape global political environment.
Role of government: Governments play many roles, but their primary responsibility
is to manage public policy to balance individual & collective interest of the governed.
Governments play many roles such as providing goods & services that benefit the nation as
a whole, for e.g. healthcare, education, economic, and mobilizing defense mechanism.
Governments finance their activities by collecting taxes; they create laws to outline
responsibilities & maintain social order.
Globalization of culture
A principal challenge of globalization today focuses on the tension between the
cultures of nation-states and an emerging global culture. Because culture is known to shape
meaning and create values as well as lead to common habits, many worry that cultural
globalization will result in a homogenous world culture that drives out individual variation.
Products ranging from cola beverages to denim blue jeans, autos, and television are
consumed throughout the world. English increasingly is a global language business; some
food habits are converging; and businesses activities are increasingly are viewed as modes
of distributing information and other resources around the world.
Most of today’s cultural challenges are mediated by nation whose citizen learn,
share, and appreciate and interrelated set of values, beliefs, and behaviors. Virtually every
aspect of a particular national culture develops to support it. Economic and political system
reflects national beliefs about how to manage resources, and national cultures traditionally
are powerful influence on people and organization. They help define who you are, and they
define what is expected of you.
GLOBALISATION OF AGRICULTURE:
When the globalization was not come in India that time agriculture having no
scope, every farmer use to produce the commodity for it self and its family.
Because they did not have sufficient facilities like water supply, land, no
electricity, no modern technology, hybrid seeds, poorly developed transportation
modes; to transfer the commodity from one place to another. The quality of
commodity was good, but quantity was less.
GLOBALIZATION OF TECHNNOLOGIES
International business expansion emphasizes a product or process life-cycle that
extends the life of a technological change .Technological breakthroughs in medicine, in
television broadcasting, and in most other fields of endeavor combine to make the world
a smaller place where in-person or electronic access to people and other resources around
the world is most as great as to next-door neighbors .This access to information,
opportunity, products, and markets is an argument for a global technological revolution.
The global technological environment often focuses on those process and product
with greatest global impact, but there is a propensity to examine product more than
processes. Microwave cooking and virtual – reality video games are all e.g. of product
development due to technological breakthroughs. Certainly one of the most profound
technological has been the introduction of telecommunications to link the whole world, a
computer that facilitates those links.
GLOBALIZATION OF ECONOMICS
Many trace the roots of globalization to many events that shape an increasingly
interconnected global economy. Interconnection between elements of the global economy
such as trade, labor, and currency have an implication for world development as well as
organization operating in a global economy. Government and not-for-profit organization
contribute to GDP.
Indian embarked upon process of reforms in 1990 when its balance of payment
position was very critical. The county has foreign exchange reserves lasting only 2 week.
Several steps were taken to manage this situation, which brought down the ratio of the
current account deficit to GDP, from an unsustainable level of 3.2%to 0.8% in 1994-
1995. The is include strategies to promote export varies liberalization measures in
connection with industries and trade practices, introduction of a new import export traffic
policy in 1991 and emphasis on exports of high value added products. The current
account also showed structural changed in terms of sharp reduction indebt creating flows
and an increased resource to non-debt creating foreign investment flows.
OBSTACLES TO GLOBALIZATION
Trade Barriers: Although the tariff barriers to trade have been progressively reduced
thanks to the GATT/WTO, the non-tariff barriers have been increasing, particularly in the
developed counties.
Conclusion:
After adopting the policy of globalization, India has to go through many changes in
many sectors. Such as political, industrial, agricultural, etc.
Agriculture Product
India is one of the biggest manufactures of spices. India export spices to almost
more than 28 to countries. Globalization has capacity to rise employment increasing the per
capita income of people.