New Globalization - Prince Dudhatra-9724949948

Prepared by: prince dudhatra
prince dudhatra-9724949948
Globalisation
could involve
all these
things!
Globalisation
WHAT IS GLOBALIZATION?
Globalization is an ‘Umbrella’ and term
defined precisely by IMF is “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.”
FREE MOVEMENT OF GOODS
FREE FREE
MOVEMENT GLOBALISATION MOVEMENT
OF OF
CAPITAL TECHNOLOGY
FREE MOVEMENT OF
SERVICES
PHASES OF GLOBALIZATION
The first era of globalization (1850 – 1945) was
Pax Britannica under ‘gold standard’ and
the second phase (post second World War) is
Pax Americana under ‘Bretton Wood
System’
Final Act
WTO AGREEMENTS
AGREEMENT
ESTABLISHING
WTO
TRADE IN TRADE IN
GOODS
GATT 1994 TRADE IN INTELLECTUAL
+ SERVICES PROPERTY
TWELVE
AGREEMENTS RIGHTS
WHY GLOBALIZATION?
 New opportunities to developing countries.
 Greater access to developed country markets.
 Technology transfer lead to improved

productivity.
 Higher living standard.
Features of Current
Globalization
 New Markets
 New Actors
 New Rules & Norms
 New Tools of Communication
New Markets
 Services
 Financial markets
 Antitrust laws
 Global brands
New Actors
 Multinational Corporations
 W.T.O
 Criminal court
 NGOs.
 Regional blocs
 Policy coordination
New Rules & Norms
 Market policies
 Adoption
 Human rights
 Goals & action
 Global environment
 New Multilateral
 Investment
New tools of communication
 Internet & electronic

 Cellular phones
 Fax machines
 Cheaper transport
 Computer-aided design
FOREIGN MARKET ENTRY
STRATEGIES
 Exporting
 Fully Owned Manufacturing Facilities
 Counter trade
 Strategic Alliance
 Third Country Location
STRATEGIES (Cont.)
CONTRACT MANUFACTURING
 Manufacturing in foreign country
LICENSING/FRANCHISING
 Company get intellectual property
Multi-national
corporations (MNCs)
 . . Businesses with a
headquarters in
one country but
with business
operations in a
number of others.
No matter where you go

in the world, certain
businesses will always
have a presence. prince dudhatra-9724949948
STRATEGIES (contd.)
MANAGEMENT CONTRACT
 Managing the business of foreign owner
ASSEMBLY OPERATIONS
 Send parts or components to a foreign
plant
STRATEGIES (contd.)
JOINT VENTURING
 Collaboration between foreign
company and host country company.
MERGERS AND ACQUISITIONS

 Mingle with and purchase of a local
company.
 pictured above is the new 2009 Jaguar XF
 world's most expensive cars
MERITS OF GLOBALIZATION
 AVAILABILITY OF GLOBAL
PRODUCTS
 FOREIGN INVESTMENT
 OPEN ECONOMY
Integration of Economies
.
• The increasing

reliance of
economies on each
other

• The opportunities to
be able to buy and
sell in any country
Stock Markets are now in the world
accessible from anywhere
in the world! prince dudhatra-9724949948
MERITS OF GLOBALIZATION (CONT.)
 EMPLOYMENT
OPPURTUNITIES
 SPREAD OF
TECHNOLOGY
 INCREASE
COMPETITION
DEMERITS OF GLOBALIZATION
 EFFECT ON LOCAL INDUSTRY
 POLITICAL INTERFERENCE
 CREATES UNEMPLOYMENT
 SOCIAL, ECONOMIC, CULTURAL,

LEGAL, POLITICAL THREATS
 INCOME INEQUALITY
ESSENTIAL CONDITIONS FOR
GLOBALISATION
 Business freedom
 Free Trade Zone (FTZ)
 Facilities
 Government support
 Resources (finance, technology, R&D,
managerial expert and brand image)
 Competitiveness (low cost, quality,
technology, after sales services &
marketing)
 Orientation
HOW GOVERNMENT
INFLUENCE
COMPETITIVENESS
 Competition Between the countries
 Challenges Between the countries
 According to “John A young”.
 Government Role.
ROLE OF MNE IN
GLOBALIZATION
FEATURES OF MNEs
 Worldwide operation.
 Centralised capital.
 Sophisticated technology.
 Professional management.
 International market.
 High brand equity.
BENEFITS TO HOME COUNTRY
 Wider market.
 Employment generation.
 Higher level of industrial activity.
 Benefit of foreign culture.
BENEFITS TO HOST COUNTRY
 Investment.
 Boost to domestic industry.
 Advanced technology.
 Professional management.
 R & D.
 Increase competition.
RISK TO HOME COUNTRY
 Loss of employments.
 Retarded development.
 Detoriation of country’s culture
RISK TO HOST COUNTRY
 Inappropriate technology
 Kill domestic industry
 Retard employment
 Deplete local resources
 Undermine culture
IMPACT OF TECHNOLOGY
OPPORTUNITY OR BURDEN
 Introduction.
 Dependence on technology.
 Bringing the world closer.
 Effects.
 Improving economy.
 Increased quality life.
 Emergence of industries.
 Unpredictability.
TERRORISM:ROLE OF TECHNOLOGY
 Negative response to globalisation.
 Information Technology is the heart
of Modern terrorism.
 Ability to exploit technology.
 Internet.
 Cell phones, e-mail, satellite
communication.
THANK YOU
THE JOURNEY NEVER ENDS

New Globalization - Prince Dudhatra-9724949948

Uploaded by

Copyright:

Available Formats

You might also like

New Globalization - Prince Dudhatra-9724949948

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

New Globalization - Prince Dudhatra-9724949948

Uploaded by

Copyright:

Available Formats

Prepared by: prince dudhatra

 Greater access to developed country markets.

 Technology transfer lead to improved

 Higher living standard.

 New Rules & Norms

 New Tools of Communication

 Internet & electronic

 Fully Owned Manufacturing Facilities

 Third Country Location

No matter where you go

MERGERS AND ACQUISITIONS

 SOCIAL, ECONOMIC, CULTURAL,

 High brand equity.

 Higher level of industrial activity.

 Benefit of foreign culture.

 Detoriation of country’s culture

 Kill domestic industry

 Deplete local resources

You might also like