Globlization

Globlization means integating the economyof a country with the economies of other countries under condition of freer flow of trade and capital and movement of person across borders. Globlization is a process of development of the world into a single integrated economic unit.

Stages of globlization
1. Arms length service2. Takes activity on its own 3. Own manufacturing 4. company moves to a full insider position in the market 5. Genuinely global mode of oprations

Essential conditions for globlization

v v v v v

Business freedom Facilities Government support Resources Competitivness

Foregin market entry strategies

v

The choice of most suitable strategies alternative is based on the relevant factors related to the company and the foregin market.

Important foregin market entry strategies are

v v v v v v v v v v v

Exporting licensing/franchising Contract manufacturing Management contract Assembly oprations Fully owned manufactring facilities Joint venture Counter trade Mergers and acquisition Strategic alliance Third country location

exporting

Prons and cons of globilization