GLOBAL We are

VILLAGE open to
world –
WHY COMPANIES GO GLOBAL
 GLOBALISATION
Globalization (i.e. the aggregate
change we observe in our factories,
storefronts, indeed generally across
our economies and lifestyles)
is caused by four fundamental forms
of capital movement throughout the
global economy. The four important
capital flows:-
•Human Capital (i.e. Immigration,
Migration,Mass Departure, Transportation, etc.)

•Financial Capital (i.e. Aid, Equity, Debt, Credit &

Lending, etc.)

• Resource Capital (i.e. Energy, Metals, Minerals,

Lumber, etc.)

• Power Capital (i.e. Security Forces,etc.)

 Meaning
The International Monetary Fund ,defines
globalization as the growing economic
interdependence of countries worldwide
through increasing volume and variety of
cross-border transactions in goods and
services, free international capital flows,
and more rapid and widespread diffusion of
technology.
•The economic aspects stressed in globalization
are trade, investment and migration. The
globalization of trade entails that human beings
have greater access to an array of goods and
services never seen before in human history.

•From German cars, to Colombian coffee, from

Chinese clothing, to Egyptian cotton, from
American music to Indian software, human
beings may be able to purchase a wide range of
goods and services.
• Cultural global ties also grow through globalization
as new ideas and fashions through trade, travel and
media move around the globe at lightning speed.
Global brands such as Coca-Cola, Nike & Sony serve
as common reference to consumers all over the
World.

• The other aspect of globalization is the

revolutionary change in technology, particularly in
transport and communication, which ostensibly
creates a global village:
 NATURE AND EXISTENCE OF
GLOBALISATION

There is much academic discussion about

whether globalization is a real phenomenon
or only an analytical artifact (a myth).
Although the term is widespread, many
authors argue that the characteristics
attributed to globalization have already been
seen at other moments in history.
INTERNATIONALISATION-GLOBALISATION.

In internationalization, the role of the

state and the importance of nations are
greater, while globalization in its complete
form eliminates nation states.
 MULTINATIONAL CORPORATION
(MNC)

Transnational corporation (TNC), also called

multinational enterprise (MNE), is a
corporation or enterprise that manages
production or delivers services in more than
one country. It can also be referred as an
international corporation.
THANK YOU