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globalization

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The worldwide movement toward economic, financial, trade, and communications integration.
Globalization implies the opening of local and nationalistic perspectives to a broader outlook of
an interconnected and interdependent world with free transfer of capital, goods, and services
across national frontiers. However, it does not include unhindered movement of labor and, as
suggested by some economists, may hurt smaller or fragile economies if applied
indiscriminately.
অররননততক, আতররক, ববতণজজ, এবব যযবগবযযবগ ইতনযগশন তদযক তবশবজবপপ আযনবলন.
তবশবন জবতপ !প"বনব জ#য$ "%ল&ন, পণজ, য!বব এবব তবনব"%যলজ 'বনব() !য* একত+ প),য)) এবব প),য)) -প)
তন.র )শপল তবযশ) একত+ ব/ 01) দ/ ত2.*প যরযক 'বনপ 3 জবতপতবববদপ দ/ ত2.ত*) য4বলব) যবব5ব. যবইয0বক, এ+ব তনতবর6বয)
7যবগ যতদ য8ব+ বব .*#) অররনপতত) আ9বত 0যত পবয), তক8# অররনপতততবদ :ব)ব 7;বতবত তন)<# শ =" আযনবলন এবব,
অ(.# র > ন.
Nature of Globalization
Globalization is one of the most important processes involving contemporaryhumanity, and,
significantly, for at least fifteen years it has been one of the phenomena mostthoroughly studied
by the social sciences. Not surprisingly, therefore, in an attempt toacquire an ever greater
quantity of information about the phenomenon, various researchershave sought to devise
instruments with which to measure it. This, however, is a difficultoperation, for at least two
reasons.
তবশবন -য?4যযবগজ.বযব, অ(ত পযন) ব8) জনজ এত+ !বয6য প#@বন#প#@.বযব !ব"বতজক তবAবন গযবBণব 9+নব এক
0যয8, !"!ব"তক "বনবতব) জত$ত !বয6য CDEপ%ণর 7তFব এক, এবব. এত+ আGযরজনক ন যয, অতএব, 9+নবত+
!Hযকর তরজ ক4ন3 অত&ক পত)"বণ toacquire একত+ 7ব!, তবত.I researchershave এ+ব পত)"বপ ক)ব, যব তদয
যJ -ইল 6ব3ব. এই তযব, অ(ত দ#ত+ কব)যণ, একত+ difficultoperation 0.
Why Do ompanies Go Global!
ompanies go global primarily to gain greater mar"et share while others go global and move
the headquarters to areas more favourable to their legal needs. They move their plants to so#
called developing nations for cheap labour costs, to e$pand their mar"et reach and create other
revenue sources in other economies.
যকবHবতন যযযত তবশবজবপপ 7বরত"ক.বযব অনজযদ) তবশবজবপপ যযযত য4ন ব$ "বযকর + যশব) লব. কয) এবব তবযদ) আইতন
7যবজন আয)ব অন#ক% ল এলবকব !দ) !)বযত. তব)ব তবযদ) ববজব) নবগবযল) 7!বত)ত এবব অনজবনজ অররনপতত) অনজবনজ
)বজK !% L Mতত), !;ব =" 4)6 জনজ তরবকতরত -Iনশপল জবতত) কবয8 তবযদ) গব8পবলব !)বযত.
10 easons to go !nternational
The international marketplace offers a world of business
opportunities for "merican companies seeking to sell or source
products worldwide. #ot only can you tap into a world
marketplace of $ billion people, but according to business.gov,
companies that do international business grow faster and fail less
often than companies that don%t.
&ritten by'
ichard (. )iggs, *+,
"tlantric --*
(ortland, ,, ./"
1 0$1 231 4145 6 www.atlantric.com10 easons to go !nternational ichard ( )iggs78ounder9 *+,7
"tlantric llc
2 7 ( a g e
10 easons to go !nternational
!f you are pondering whether to go global, recognize the fact that you are
:global;, in that you very likely have global competitors.
<ou are in a competitive global marketplace now.
,b=ectives of >arket +ntry
*ompanies decide to go global and enter international markets for a variety of reasons,
and these different ob=ectives at the time of entry should produce different strategies,
performance goals, and even forms of market participation. However, companies often
follow a standard market entry and development strategy. The most common is
sometimes referred to as the :increasing commitment; method of market development,
in which market entry is done via an independent local partner. "s business and
confidence grows, a switch to a directly controlled subsidiary is often enacted. This
internationalization approach results from a desire to build a business in the countrymarket as ?uickly as
possible and by an initial desire to minimize risk coupled with the
need to learn about the country and market from a low base of knowledge. " few of the
more wide@spread reasons are provided below'@
easons to enter the international marketplace and how to
en=oy new eAport opportunities
1. !ncrease sales. !f your business is succeeding in the ../., eApanding globally will
likely improve overall revenue. "pproAimately 40B of the worldCs population lives
outside of the ../. and 40B of the worldCs population does not speak +nglish D this
suggests customers are global and that if your company looks beyond the shores of
the domestic market, you have some real upside potential. !f your company has a
uni?ue product or technological advantage not available to international
competitors then this advantage should result in ma=or business success abroad. 8or
eAample, if you run a software company and add a 8rench and German language
version, you are eAtending your total market by nearly 200 million.
2. !mprove profits. >any eAport markets are not as competitive as the ../. and
therefore price pressures are far less D ever wonder why a Eaguar car made in
*oventry, +ngland costs more in *oventry than *aliforniaF !t is common practice 10 easons to go
!nternational ichard ( )iggs78ounder9 *+,7"tlantric llc
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for ../. products to be sold at a higher price Gand marginH in many eAport markets
D software translated into German is much appreciated by users in Germany and
they will become loyal customers and pay a premium. " ../. company will often
en=oy a far less competitive landscape if it goes to the trouble of localizing.
3. /hort@term security. <our business will be less vulnerable to periodic
fluctuations and downturns in the ../. economy and marketplace.
I. -ong@term security. The ../. is a large, mature market with intense
competition from domestic and foreign competitors. "dditionally, the ../.
currently has eAcess capacity so international business trade may become a
necessity if you want to keep up in an increasingly global marketplace and en=oy
the potential for cost savings.
5. !ncrease innovation. +Atending your customer base internationally can help
you finance new product development.
0. +Aclusivity. <our companyCs management may have eAclusive market
information about foreign customersJprospects, marketplaces or market situations
that are not known to others.
$. +conomies of scale. +Aporting is an eAcellent way to eApand your business with
products that are more widely accepted around the world. !n many manufacturing
industries, for eAample, internationalization can help companies achieve greater
scales of economy, especially for companies from smaller domestic markets. !n
other cases, a company may seek to eAploit a uni?ue and differentiating
advantage Gintellectual propertyH, such as a brand, service model, or patented
product. The emphasis should be on :more of the same,; with relatively little
ad=ustment to local markets, which would undermine scale economies.
"lthough the fundamental reason for entering the Global >arketplace is to increase
potential demand, fre?uently other factors can drive international market investment
and performance measurement decisions. These include'
1. +ducation. .nder certain circumstances, a company might undertake an
international market entry not solely for financial reasons, but to learn. 8or
eAample, the consumer products division of Koc, the Turkish conglomerate,
entered Germany, regarded as the worldCs leading market for dishwashers,
refrigerators, freezers, and washing machines in terms of consumer sophistication
and product specification. !n doing so, it recognized that its unknown brand would 10 easons to go
!nternational ichard ( )iggs78ounder9 *+,7"tlantric llc
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struggle to gain much market share in this fiercely competitive market. However,
Koc took the view that, as an aspiring global company, it would undoubtedly
benefit from participating in the worldCs toughest market and that its own product
design and marketing would improve and enable it to perform better around the
world. !n most sectors, participation in the :lead market; would be a prere?uisite
for ?ualifying as a global leader, even if profits in that market were low. -ead
markets include'
.nited /tates for software, Eapan for consumer electronics, !taly for fashion, Germany
for automobiles and so on. !t should be noted that if a company is to maAimize learning
from a lead market, it should probably participate with its own subsidiary. -earning
indirectly, via a local distributor or partner, is obviously less effective and will contribute
less to the companyCs development as a global player.
4. *ompetitive /trike. >arket entry can prompt not by the positive
characteristics of the country identified in a market assessment pro=ect, but as a
reaction to a competitorsC moves. " common scenario is market entry as a
follower move, where a company enters the market because a ma=or competitor
has done so. This is obviously driven by the belief that the competitor would gain a
significant advantage if it were allowed to operate alone in that market.
"nother fre?uent scenario is :offense as defense,; in which a company enters the
home market of a competitorLusually in retaliation for an earlier entry into its
own domestic market. !n this case, the ob=ective is also to force the competitor to
allocate increased resources to an intensified level of competition.
10.Government !ncentives Gi.e., cashH. !t is common for governments to
:incentivize; their countryCs companies to eAport. This often results in many
companies entering markets they would otherwise not have tackled. The ../.
government offers a wealth of help when a company decides to begin eAporting.
+Aport assistance centers provide a one@stop resource and can be found in over
100 ../. *ities. The /mall )usiness "dministration G/)"H offers +Aport &orking
*apital (rograms that include guaranteed loans of M50,000 to M100,000 to help
eAporters grow their business.10 easons to go !nternational ichard ( )iggs78ounder9 *+,7"tlantric
llc
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/ummary
!nternational markets evolve rapidly and very often companies struggle to keep up in
terms of their strategy. !t is therefore reasonable to deduce that many companiesC
international operations will consist of a collage of country market operations that
pursue different ob=ectives at any one time. This, in turn, suggests that most companies
would adopt different entry modes for different markets. >ore commonly, however, is
for companies to evolve a template that is followed in almost all markets. This usually
starts with market entry via an indirect distribution channel, usually a local independent
distributor or agent. "s there are at least 10 good reasons to go global, there is no right
or wrong approach to entering the !nternational market. Nifferent circumstances will be
prevalent in different markets and for different companies. !n all cases ! strongly advise
serious thought and much preparation. esearch foreign property and understand the
customer culture of your overseas operations.
)y taking your products or services international, you are replicating your business for
another set of circumstances, a different locale and culture, with a different market,
demands, needs and eApectations. !s it worth itF "bsolutely. !f you do your homework
and get some help from locals and professionals, going global could be one of the
smartest and most profitable moves you%ve ever made. ,therwise, you may be
overlooking increased sales, new knowledge and eAperience and most importantlyO.
higher profits.
P 2013 ichard (. )iggs. "ll rights reserved.
Why Do ompanies Go %nternational!
ompanies go international for a variety of reasons, but the goal is typically company
growth or e$pansion. Whether a company hires international employees or searches for
new mar"ets abroad, an international strategy can help diversify and e$pand a
business.
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