Features of Globalization

Features of Globalization

1. FEATURES of GLOBALISATION Dr.B.B.Tiwari SRMGPC, Lucknow b [email protected] Mobile:[phone]

2. Flow of content Introduction : What is globalization? Globalization : Background Globalization Theory Theories of Globalization Salient Features of globalisation Stages in globalization Impact of globalisation:- Positive and Negative Conclusion

3. In t roduction Globalization is the free movement of goods, services and people across the world in a seamless and integrated manner. Globalization can be thought of to be the result of the opening up of the global economy between nations. Globalization is grounded in the theory of comparative advantage which states that countries that are good at producing a particular good are better off exporting it to countries that are less efficient at producing that good .

4. Globalization : Background Globalisation is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Globalisation means rapid increase in the share of economic activities taking place across national borders . globalization can also mean that countries liberalize their import protocols and welcome foreign investment into sectors that are the mainstays of its economy.

5. Theories of Globalization Economic : Countries that trade with many others and have few trade barriers are economically globalized. Social : A measure of how easily information and ideas pass between people in their own country and between different countries (includes access to internet and social media networks). Political : The amount of political co-operation there is between countries.

6. The progress of industrial resolution is the 20th century was accompanied by a replacement of the police state by a welfare state. Around 1985, Indian economy began showing big strains. Indian public sector now appeared to be a liability and foreign exchange reserves came to be in very bad shape. The socialist economies, in particular, the Soviet economy and political system, was collapsing. Even Perestroika and Glasnost could not save the USSR. It collapsed as a state . July 1991 the Government of India decided to go in for liberalization of economy. Nature of Globalization

7. Salient Features of globalisation Liberalization Free Trade Globalization of Economic Activity Liberalization of Import – Export system Privatization Increased Collaboration Economic Reforms

8. Stages in globalization Domestic Market World Market Multinational Company Global Transnational Company

9. Domestic Market Their focus remains with domestic market. Their productions facilities remain based in home country. Their analysis is focused on the national market. They do not think globally and avoid taking risk in going global. Their top management may have traditional kind of business management competency and less global expertise. They perceive that there is risk in expanding into global market and thus they try to play safe and satisfied with whatever gains they are getting in domestic market.

10. International Market Focus on going beyond domestic Their management remains ethnocentric with a vision to expand internationally. They extend their domestic products, domestic prices and other business practices to foreign countries. They keep their marketing mix constant and extend their operations to new countries. Their management style remains centralized for their home nation and extended top down to the overseas market country.

11. Multinational Company Companies when they spread their wings to more nations become multinational companies. Sooner or later they realize that they have to change their marketing mix according to the foreign market. This can also be termed as multi domestic, in which different strategies are adopted for different market. The management of such companies remains decentralized and even production may be in the host country. Performance evaluation is done at different host countries.

12. Global Such companies have a global marketing strategy. They either produce in home country or in a single country and focus marketing globally. They adapt to the market conditions according to the foreign market. Their performance evaluation is done worldwide.

13. Transnational Company Transnational companies have a geocentric approach, which means they think globally and act locally. Transnational companies collect information worldwide and scan it for use beyond geographical boundaries. The vision of such to grow more in a global way. The R&D, management, product development are shared worldwide. Their human resources procurement and development remains globally.

14. Impact of globalization : Positive Rapid growth of business. Opportunity to go global. Introduction of various new technology. Rise in access of technology in rural area. New technology in the agriculture Literate farmers Rise in the literacy rate

15. Impact of globalization : Negative Disparity in the society Ethical responsibility of business has been diminished. Price hike of every daily usable commodities. The local business has perished High growth but problem of unemployment. Affected the agriculture sector

16. Conclusion Globalisation had increased the trade of products, ideas, technologies etc. and created the world without boundaries but it also had some negative impact on the developing countries. Flowing with globalization ,India is shining in nearly every Prospects. India is getting a global recognition and slowly moving towards to become a major economic and political strength. Though the development is progressing rapidly, still many basic problems like rural poverty, corruption and political instability remained unsolved.