Vaibhav Singh, Roll No.

090251118, Assignment-1, MK-3

SCHOOL OF BUSINESS STUDIES

International Marketing
(MK-3)
ASSIGNMENT – 1

SUBMITTED TO- SUBMITTED BY-

Prof. Salil Bhatia Vaibhav Singh
SHARDA UNIVERSITY MBA – IV Sem
SECTION - A
Roll no.- 090251118

Dated - 05/05/11

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Vaibhav Singh, Roll No. 090251118, Assignment-1, MK-3

Question. Role of Growth Opportunities in Globalization, illustrate with corporate

examples.

ANSWER

The essence of economic development is the transfer of technology from the industrially
advanced country to the developing world. It was argued that knowledge is a heritage of
humanity.

Jute and synthetic substitutes were an example of such unwholesome marketing policy. The
control and regulation of these multinational companies were urged on the advanced countries
for healthy development in trade and investment. For the sake of development of their
multinationals, developed countries have introduced Globalization whereas developed countries
have got the maximum benefit from it.

An investment that has the potential to grow significantly, leading to a profit for the investor.
New investments are often presented to potential investors as growth opportunities.

Foreign investment market in India

Due to high demand of different product and the perfect competition market, more and more
foreign companies are investing and entering the Indian market. According to recent reports, the
amount of the foreign institutional investments (FIIs) has touched around US$ 10 billion. This is
a real boost to the market as well as the stock exchange of India. There was around an 85.1 %
growth in the Foreign direct investments (FDI) market which rose from around US$ 25.1 billion
in the year 2007 to US$ 46.5 billion in the year 2008. In fact the Indian equity market has
become the third largest in the South East Asian region after China and Hong Kong.

Recent trends in Indian market

India market growth looks optimistic and bright in the recent years to come. The service sector
contributes around 54% of the annual Gross Domestic Product while the share of the industrial
and agricultural sectors is 29% and 17% respectively. India is steadily becoming one of the
global business giants with its booming market scenario.

Companies like Dabur, Uflex ltd, G.M., etc are entering the new market to grasp the
opportunities worldwide.

GDP Growth rate:

The Indian economy is passing through a difficult phase caused by several unfavourable
domestic and external developments; Domestic output and Demand conditions were adversely
affected by poor performance in agriculture in the past two years. The global economy
experienced an overall deceleration and recorded an output growth of 2.4% during the past year

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Vaibhav Singh, Roll No. 090251118, Assignment-1, MK-3

growth in real GDP in 2001-02 was 5.4% as per the Economic Survey in 2000-01. The
performance in the first quarter of the financial year is5.8% and second quarter is 6.1%.

Export and Import:

India's Export and Import in the year 2001-02 was to the extent of 32,572 and 38,362 million
respectively. Many Indian companies have started becoming respectable players in the
International scene. Agriculture exports account for about 13 to 18% of total annual of annual
export of the country. In 2000-01 Agricultural products valued at more than US $ 6million were
exported from the country 23% of which was contributed by the marine products alone. Marine
products in recent years have emerged as the single largest contributor to the total agricultural
export from the country accounting for over one fifth of the total agricultural exports. Cereals
(mostly basmati rice and non-basmati rice), oil seeds, tea and coffee are the other prominent
products each of which accounts fro nearly 5 to 10% of the countries total agricultural exports.

Benefits of globalization

"We have moved from a world where the big eat the small to a world where the fast eat the
slow", as observed by Klaus Schwab of the Davos World Economic Forum. All economic
analysts must agree that the living standards of people have considerably improved through the
market growth. With the development in technology and their introduction in the global markets,
there is not only a steady increase in the demand for commodities but has also led to greater
utilization. Investment sector is witnessing high infusions by more and more people connected to
the world's trade happenings with the help of computers. As per statistics, everyday more than
$1.5 trillion is now swapped in the world's currency markets and around one-fifth of products
and services are generated per year are bought and sold.

Buyers of products and services in all nations comprise one huge group who gain from world
trade for reasons encompassing opportunity charge, comparative benefit, economical to purchase
than to produce, trade's guidelines, stable business and alterations in consumption and
production. Compared to others, consumers are likely to profit less from globalization.

Another factor which is often considered as a positive outcome of globalization is the lower
inflation. This is because the market rivalry stops the businesses from increasing prices unless
guaranteed by steady productivity. Technological advancement and productivity expansion are
the other benefits of globalization because since 1970s growing international rivalry has
triggered the industries to improvise increasingly.

Globalization leading to social anxieties:

Listed below are the three sources of anxiety between worldwide markets and social steadiness:

 Across the nations, globalization triggers the services of large sections of working people
more effortlessly substitutable,

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Vaibhav Singh, Roll No. 090251118, Assignment-1, MK-3

 Commerce can set free factors that weaken guidelines in national practices, for example
workers in South Carolina are replaced by child laborers in Honduras,
 Globalization and its cutthroat rivalry makes it hard for administration to perform
important tasks of offering the social programs

Key areas which demand immediate attention:

 Public education, which will demand proper evaluation and outcomes of globalization
incorporating its benefits.
 Amending practices to review the international fiscal institutions to assist in averting
crises, facilitating helpful early warning systems, better synchronization of exchange rates
among the world markets and arranging the private sector in order in performing rescue
functions, and
 Reorganizing the bilateral liberalization of the global financial system, which should tackle
the major areas related to food trade, labour pacts and the environment.

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