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Prepared by: prince dudhatra
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Globalisation
Globalisationcould involveall thesethings!
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WHAT IS GLOBALIZATION?Globalization is an Umbrella and term
defined precisely by IMF is the growing
economic interdependence of countriesworldwide through increasing volume and
variety of cross-border transactions in goods
and services, free international capital flows
and more rapid and widespread diffusion oftechnology.
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GLOBALISATION
FREE MOVEMENT OF
SERVICES
FREE MOVEMENT OF GOODS
FREE
MOVEMENT
OF
TECHNOLOGY
FREE
MOVEMENTOF
CAPITAL
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PHASES OF GLOBALIZATIONThe first era of globalization (1850 1945) was
Pax Britannica under gold standard and
the second phase (post second World War) isPax Americana under Bretton Wood
System
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WTO AGREEMENTS
TRADE IN
GOODSGATT 1994
+
TWELVE
AGREEMENTS
TRADE IN
SERVICES
TRADE IN
INTELLECTUAL
PROPERTY
RIGHTS
AGREEMENT
ESTABLISHING
WTO
Final Act
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Features ofCurrentGlob
alizati
on
New Markets
New Act
ors
New Rules & Norms
New Tools ofCommunication
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New Markets
Services
Financial markets
Antitrust laws
Globalbrands
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New Actors
Multinational Corporations
W.T.O
Criminal court NGOs.
Regionalblocs
Policy coordination
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New Rules & N
orms
Market policies Adoption
Human rights Goals & action Global environment
New Multilatera
l
Investment
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New tools of communication
Internet & electronic
Cellular ph
ones
Fax machines
Cheaper transport
Computer-aided design
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FOREIGN MARKET ENTRY
ST
RAT
EGIES
Exporting
Fu
lly Owned Manu
facturing Faci
lities
Counter trade
Strategic Alliance
Third Country Location
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FOREIGN MARKET ENTRY
STRATEGIES (Cont.)
CONTRACT MANUFACTURING
Manu
facturing in
foreign c
ountry
LICENSING/FRANCHISING
Company get inte
llectua
lpr
operty
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. .
Multi-nationalcorporations (MNCs)
Businesses with aheadquartersinone country but
with
business
operationsin anumber of others.
No matter where you go
inthe world, certain
businesses will always
have a presence.prince dudhatra-9724949948
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FOREIGN MARKET ENTRY
STRATEGIES (contd.)
MANAGEMENT CONTRACT
Managing the business offoreignowner
ASSEMBLY OPERATIONS
Send parts or components to a foreignplant
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FOREIGN MARKET ENTRY
STRATEGIES (contd.)
JOINT VENTURING
Collaboration between foreigncompany and host country company.
MERGERS AND ACQUISITIONS
Mingle with and purchase of a localcompany.
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pictured above is the new 2009 Jaguar XF
world's m
ost expensive cars
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Integration ofEconomies
. Theincreasing
reliance of
economies oneach
other
The opportunitiesto
be ableto buy and
sell in any country
inthe worldStock Markets arenowaccessible from anywhere
inthe
world!prince dudhatra-9724949948
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M
ERITS OF GLOBALIZATION(CONT.)
EMPLOYMENT
OPPURTUNITIES
SPREAD OF
TECHNOLOGY
INCREASE
COMPETITION
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D
EMERIT
S OF GLOBALIZAT
ION EFFECT ON LOCAL INDUSTRY
POLITICAL INTERFERENCE
CREATES UNEMPLOYMENT
SOCIAL, ECONOMIC, CULTURAL,LEGAL, POLITICAL THREATS
INCOMEINEQUALITYprince dudhatra-9724949948
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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
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HOW GOVERNMENT
INFLUENCECOMPETITIVENESS
Competition Between the countries
Challenges Between the countries
According to John A young.
Government Role.
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ROLEOFMNE INGLOBALIZATION
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B
ENEFITS TO HOME COUNTRY
Wider market.
Employment generation.
Higher levelof industrial activity.
Benefit offoreign culture.
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B
ENEFITS TO HOST COUNTRY
Investment.
Boost to domestic industry.
Advanced technology. Professional management.
R & D.
Increase competition.
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RISK TO HOM
ECOUNTRY
Loss of employments.
Retarded development.
Detoriation of countrys culture
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RISK TO HOST COUNTRY
Inappropriate technology
Kill domestic industry
Retard employment
Deplete local resources
Undermine culture
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IMPACT OF TECHNOLOGY
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OPPORTUNITY OR BURDEN
Introduction.
Dependence on technology.
Bringing the w
orld c
loser.
Effects.
Improving economy.
Increased quality life.
Emergence of industries.
Unpredictability.
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TERRORISM:ROLE OF TECHNOLOGY
Negative response to globalisation.
Information Technology is the heart
ofModern terrorism. Ability to exploit technology.
Internet.
Ce
llph
ones, e-mai
l, sate
llitecommunication.
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THE JOURNEY NEVER ENDS
THANK YOU
prince dudhatraprince dudhatra--97249499489724949948
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