Contents:

Introduction

Globalisation & its features

WTO & its impact

Impact of Global Environment

Case Study

Conclusion

Introduction: The global business environment

can be defined as the environment in different sovereign countries, with factors exogenous to the home environment of the organization, influencing decision making on resource use and capabilities

How will our ideas, goods, or services fit into the international market?

1) How will our ideas, goods, or services fit into the international market?

Knowledge of other countries, economies & cultures

Understanding of how global economy works

Ability to recognize & use ideas from different markets

Globalisation & its features: “the growing economic interdependence of countries worldwide through

increasing volume & variety of cross border transactions in goods & services & of international capital flows,& also through the more rapid diffusion of technology”

Features of Current Globalisation:

• Large-scale production and marketing

• Competition

• Transfer of capital and technology

• International Restriction

• Interdependence of countries

WTO & its impact The global business environment is very significantly influenced by the

World Trade Organization(WTO) principles & agreements.

Impact of WTO:

Increase in export earnings

Agricultural exports

Exports of textiles & clothing

Multi-lateral rules & disciplines

Should India quit WTO? By being a part of WTO, India enjoys the most favored

nation (MFN) status with all the other members of the WTO.

Developing countries like India were expected to largely benefit because of the lowering of the agricultural protection by the developed countries.

Assuming that India’s market share in the world exports improves to 1%, & that she is able to take advantages of the opportunities that are created, the trade gains may consequently be placed at $2.7 billion exports per year.

Impact of Global Environment over the world

Industrial - emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies.

Social -Spreading of multiculturalism & better individual access to cultural diversity, world wide fads, pop culture, etc.

Language - the most popular language is English

Informational - increase in information flows between geographically remote locations.

Legal/Ethical -Crime importation and raising awareness of global crime-fighting efforts and cooperation.

Technical -Development of a global telecommunications infrastructure and greater transborder data flow, using such technologies as the Internet, Communication satellites, submarine fiber optic cable & wireless telephones .

Political – world government which regulates the relationships among governments and guarantees the rights arising from social and economic globalization.

Social (International cultural exchange) -Spreading of multiculturalism & better individual access to cultural diversity, world wide fads, pop culture, etc.

Case Study : Recession in the US

In the US, they gave everyone a chance to own property, even to those who couldn’t afford it.

On top of that, we all lived in a material world. We wanted everything we saw on TV & we wanted it at that very moment.

Hence, so many people got into debt. The same applied to the rest of the world.

There was too much credit being given to those who couldn’t repay it. The US then started the credit crunch & that gave rise to the domino effect around Europe & then, the rest of the world.

Conclusion: 1. Globalisation…..Good or

Bad?? Those who view Globalisation as bad

tend to use dark metaphors to describe the phenomenon.

But there are some who believe that Globalisation is good. They consider that Globalisation is a powerful new force but they do not use dark metaphors to describe it. Instead, they seem to view it as a rising global tide.

2. Globalisation~Weather

We treat it like the weather.

We cannot change the weather.

Follow the wisdom contained in the old Arab proverb: "If the mountain will not come to Mohammed, Mohammed will go to the mountain".

THANK YOU