Geopolitics & International Business 21C

Understanding the Trends

Faculty: MV Lakshmi

Geopolitics & International Business - 21C

Understanding the Trends will help A. countries B. business C. individuals To learn and adapt to unleash potential to work in this world of opportunities

Geopolitics & International Business - 21C

Trend 1: New Geopolitical Order 9th November 1989 and After 9th November 1989 : Fall of the Berlin Wall marked the end of Cold War and the elimination of the physical and geopolitical barriers between East and West End of the cold war: End of struggle between two economic systems capitalism and communism

Geopolitics & International Business - 21C

INDIA in the 1990s

A Ripple Effect in India.1991 Indias Balance of Payments Crisis India on the road to liberalization

Geopolitics & International Business - 21C

Trend 2: Windows opens a window of opportunity and new ways of doing international business

Windows 3.0 shipped on May 22, 1990

The rise of the Windows enabled PC eliminated the limit on the amount of information inflow and outflow

Geopolitics & International Business - 21C

Trend 3: Connectivity

9th August 1995 The New Age of Connectivity: WWW and Netscape

Geopolitics & International Business - 21C

Trend 3 :Connectivity.. The concept of the World Wide Web: Berners-Lees invention The World Wide Web and the Internet

Geopolitics & International Business - 21C

Trend 3: Connectivity..
The creation of easy-to-install and easy-touse commercial browsers popularised the Internet and the Web. Netscape went public on August 9, 1995.

Geopolitics & International Business - 21C

Trend 4: Global Rules for International Trade and Investments

January 1st 1995 The WTO is formed

Geopolitics & International Business - 21C

Trend 5: Work Flow Software Software innovation: First big breakthrough in work flow a combination of the PC and email. Electronic railroad tracks: protocols the language of the internet and WWW HTML..

Geopolitics & International Business - 21C

Trend 5:Work Flow Software Revolution in work flow from transmission protocols to standards to business processes is leading to an explosion of experimentation and innovation.

Geopolitics & International Business - 21C

Trend 6: Regionalism on the Rise Regionalism and Open Regionalism

Examples: EU, NAFTA, ASEAN, SAFTA, MERCOSUR, FTAA, IBSA

Geopolitics & International Business - 21C

Trend 7: Uploading: The communications infrastructure Apache: Shareware programme for Web server technology The concept of open source Community developed software Blogging Podcasting

Geopolitics & International Business - 21C

Trend 8: Outsourcing: Y2K India is the luckiest country in the history of the late twentieth century India benefited from the dot-com boom India benefited even from the dot-com bust

Geopolitics & International Business - 21C

Trend 8: Outsourcing: Y2K The boom laid the cable that connected India to the world, and the bust made the cost of using it virtually free and also vastly increased the number of American companies that would want to use that fiber-optic cable to outsource knowledge work to India.

Geopolitics & International Business - 21C

Trend 8: Outsourcing: Y2K The dot-com bubble was only one aspect of globalization, and when it imploded, rather than imploding globalization, it actually turbocharged it. Scarcity of capital after the dot-com bust Venture capital firms seek to invest in companies that are most efficient, high-quality, low-price way to innovate

Geopolitics & International Business - 21C

Trend 9: Offshoring China joining the WTO gave a huge boost to another form of collaboration Offshoring

Geopolitics & International Business - 21C

Trend 9: Offshoring.. Offshoring is different from outsourcing

Geopolitics & International Business - 21C

China 1977 and after

Deng Xiaoping puts China on the road to capitalism Companies in industrialized countries saw it as an incredible new market for exports but could not penetrate into its market

China 2001 and after

China became a member of the WTO China goes all out to attract investments manufacturing and technology China gains from Offshoring - just as India gained from Outsourcing

Geopolitics & International Business - 21C

Trend 9: Offshoring. Defining Outsourcing: Outsourcing means taking some specific, but limited, Function that your company was doing in-house such as research, call centres, or accounts receivable and having another company perform that exact same function for you and then integrate.

Geopolitics & International Business - 21C

Trend 9: Offshoring. Offshoring, by contrast, is when a company takes one of its factories that it is operating in Canton, Ohio and moves the whole factory offshore to Canton, China.

Geopolitics & International Business - 21C

Offshoring to China Some Implications The China price and Competitive flattening in other countries. Chinas long term strategy from sold in China to made in China to designed in China to dreamed up in China. Possibility of political instability.some issues

Geopolitics & International Business - 21C

Trend 10: Supply Chaining Global Supply chains that draw parts and products from every corner of the world have become essential for both retailers and manufacturers.

Geopolitics & International Business - 21C

Trend 10: Supply Chaining Two basic challenges: 1. Global optimization 2. Coordinating disruption prone supply with hard-to-predict demand

Geopolitics & International Business - 21C

Trend 11: Insourcing Insourcing: A whole new form of collaboration Very few companies can afford Global Supply Chain, thus emerged insourcing.. Insourcing small companies could suddenly see around the world They could sell their goods, manufacture their goods, or buy their raw materials in a more efficient manner.

Geopolitics & International Business - 21C

Trend 12 :In-forming Search Engines Worlds knowledge at finger tips available to anyone and everyone, anytime, anywhere Individual and groups empowered

Geopolitics & International Business - 21C

Trend 13 : The New Technologies Digital Mobile Personal Virtual

Geopolitics & International Business - 21C

The Triple Convergence