Essential conditions for globalisation

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Business Freedom: There should not be unnecessary government restrictions which come in way of globalisation, like import restriction, restrictions on sourcing finance or other factors from abroad, foreign investments etc. Facilities: The extent to which an enterprise can develop globally from home country base depends on the facilities available like the infrastructural facilities. Government Support: Although unnecessary government interference is a hindrance to globalisation, government support can encourage Globalisation. Government support may take the form of policy and procedural reforms, development of common facilities like infrastructural facilities, R&D support, financial market reforms and so on. Resources: Resources is one of the important factors which often decides the ability of a firm to globalise. Resourceful companies may find it easier to thrust ahead in the global market. Resources include finance, technology, R&D capabilities, managerial expertise, company and brand image, human resource etc. Competitiveness: The competitive advantage of the company is very important determinant of success in global business. A firm may derive competitive advantage from any one or more of the factors such as low costs and price, product quality, product differentiation, technological superiority, after sales service, marketing strength etc. Orientation: A global orientation on the part of the business firms and suitable globalisation strategies are essential for globalisation

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Positive Effects of Globalization Increased Competition One of the most visible positive effects of globalization is the improved quality of products due to global competition. Customer service and the 'customer is the king' approaches to production have led to improved quality of products and services. As the domestic companies have to fight out foreign competition, they are compelled to raise their standards and customer satisfaction levels in order to survive in the market. Besides, when a global brand enters a new country, it comes in riding on some goodwill, which it has to live up to. This creates competition in the market and a 'survival of the fittest' situation. Employment With globalization, companies have forayed into the developing countries and hence generated employment for them. But it is one of the positive and negative effects of globalization, depending on the point of view you wish to see it from. It has given an opportunity to invest in the emerging markets and tap up the talent which is available there. In developing countries, there is often a lack of capital which hinders the growth of domestic companies and hence, employment. In such cases, due to global nature of the businesses, people of developing countries too can obtain gainful employment opportunities. But the developed countries have lost jobs on account of this movement of jobs to the developing world and hence it is a pinch felt by people in the First World. Investment and Capital Flows One of the most visible positive effects of globalization in India is the flow of foreign capital. A lot of companies have directly invested in India, by starting production units in India, but what we

While trade originated in the times of early kingdoms. But due to improved political ties. with mutual cooperation. while the Western antibiotics and flooding the Indian markets improving the quality of life (and the longevity too) of people in India. Spread of Culture The positive effects of globalization on culture are many! Not all good practices were born in one civilization. languages and customs have spread all due to globalization. People who operate in uncivilized ways. now have to face the WTO and other world organizations that have been established with a view to control and regulate the trade activities of the countries. China's trade with Africa rose sevenfold during 2000-07 alone. Societies have become larger as they have welcomed people of other civilizations and backgrounds and created a whole new culture of their own. And this point . Without globalization. and thus pushes up the reserve of foreign exchange available in India. YouTube. This is also one of the positive effects of globalization in US and other developed countries as developing countries give them a good investment proposition. The world that we live in today is a result of several cultures coming together. People of one culture. tend to see the flaws in their culture and pick up the culture which is more correct or in tune with the times. due to globalization. if receptive. accessible only to those who have Internet or Television.the spread of know-how. you can move in the search of the best educational facilities in the world. which too has spread far and wide. there is a flow of information both ways. Indian companies which have been performing well. it has been institutionalized due to globalization. Previously. can also be expanded to include economic and political knowledge. how can I leave out the impact of foreign trade on an economy. leaving out a substantial portion of the Earth's population. the know-how also comes into developing countries due to globalization. and MySpace. Worldwide sporting events such as FIFA World Cup and the Olympic Games. leaving an impression on a culture which has adopted them. without any . Today. people had to resort to unfair means and destruction of kingdoms and countries to get what they wanted. Spread of Education One of the most powerful positive effects of globalization on women and men both is the spread of education. Comparative advantage has always been a factor even in the old times. Idol series. They too have moved from one country to another. Today. medicines would remain cooped up in the countries that came up with them and no one else would benefit. Sudoku. Origami. musical styles and other art forms. Spread of Technical Know-How While it is generally assumed that all the innovations happen in the Western world.also need to see is the amount of FII that flows into the developing countries. Facebook. The same can be said about movies. The most obvious example of the spread of knowledge is that the Western world today are waking up to the benefits of Ayurveda and Yoga. Numa Numa. both in India and off the shores. Cooking styles. the knowledge of new inventions. Orkut.[14][15] o Foreign Trade While discussing the positive effects of globalization. it is done in a more humane way. will attract a lot of foreign investment. Worldwide fads and pop culture such as Pokémon.

A person living in US can even go to another continent for a new experience and some courses which one may not find in the home country. Organizations monitoring climate change as well as those which look at the welfare of our animals and marine life. Hence. If one is interested.hindrance. This is undoubtedly one of the greatest positive effects of globalization on society. A good example of that is how the American managers went to Japan to learn the best practices in the field of mass production and incorporated that knowledge in their own production units. Legal and Ethical Effects Gone are the days where the limited jurisdiction became a hindrance in the prosecution of criminals. . one can even get a specialization in subjects indigenous to a country and spread that knowledge to the home country. Due to globalization. are undoubtedly one of the positive effects of globalization on the environment. it is now possible to catch the perpetrators of crime irrespective of which country they choose to hide in. but will be brought forward and there will be justice. Organizations for Environmental and Social Concerns In cognizance of the damage that has been caused to our world over the years. these criminals can no longer seek asylum in a foreign country. the individual nations have decided to come together to find a way to save our world from ourselves. there is also an understanding between the security agencies and the police of two or more different countries who will come together to curb global terrorism. These days due to international courts of justice.

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