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 GLOBALIZATION
DIMENSIONS, REASONS AND STAGES
At the end of this lesson, you should be able to:
1. Enumerate and discuss the following:
1.1. Dimensions of globalization
1.2. Reasons for globalization
1.3. Stages of globalization
2. Define global localization or glocalization
3. Give examples of global companies that practice glocalization
successfully
4. Discuss why and how glocalization works
DIMENSIONS OF GLOBALIZATION
1. Planning to expand the business on a worldwide
scope.
2. Developing a global outlook of such business
3. Considering global business dynamics irrespective of
national consideration
4. Creating product development and product planning
on a global market sphere
5. Global sourcing of the factors of production
6. Global orientation or organization structure and
management structure
REASONS FOR GLOBALIZATION
1. Rapid shrinking of time and distance across the
globe
2. Domestic markets are no longer rich
3. To find political and economic stability
4. To get technological and managerial know-how of
other countries
5. To reduce high transportation costs
6. To be close to raw materials and to markets
7. The creation of World Trade Organization (WTO)
STAGES OF GLOBALIZATION
 STAGE 1.
The company moves into new market overseas by linking
up with local dealers and distributors.
 STAGE 2.
The company takes over the activities on its own.
 STAGE 3.
The company begins to carry out its own manufacturing,
marketing and sales in key foreign markets.
 STAGE 4.
The company moves to a full insider position in these markets;
however, the headquarters mentality continues to dominate.
 STAGE 5.
The company moves towards a genuinely global mode of
operation. Global localization happens.
Global Localization:
GLOCALIZATION
● Glocalization is a combination of the words "globalization"
and "localization." The term is used to describe a product or
service that is developed and distributed globally but is also
adjusted to accommodate the user or consumer in a local
market.
● The process can be expensive and resource-intensive, but it
often pays off for companies that practice it.
● Often, glocalization campaigns involve culturally friendly
media and ad campaigns to encourage the acceptance of
foreign products among a local audience.
Now, let us do
some reading.

CLICK
Now, answer
the questions
on Activity 3.