J ClelseclirzetiionWHAT IS GLOBALIZATION? » Globalization can be defined as a process of rapid economic, cultural, and institutional integration among countries. » This unification is driven by the liberalization of trade, investment and capital flow, technological advances, and pressures for assimilation towards international standards. » Globalization makes the world more accessible to everyone.TYPES OF GLOBALIZATION 1. Economic: Countries that trade with many others and have few trade barriers are economically globalized. 2. Social: A measure of how easily information and ideas pass between people in their own country and between different countries (includes access to internet and social media networks). 3-Political: The amount of political co-operation there is between countries.CAUSES OF GLOBALIZATION Trade liberalization Improvements in technology Reduced cost/improvement of communications and transportation Deregulation of financial markets. Increased significance of TNCs (transnational corporations)TRADE LIBERALIZATION © Trade liberalization refers to a reduction of trade barriers, this will open up worldwide markets. ° Trade barriers have fallen since the Second World War. » New organizations were formed to increase integration — GATT (General Agreement on Tariffs and Trade, WTO from 1995)“IMPROVEMENTS IN TECHNOLOGY ° Improved technology makes it easier to communicate and share information around the world. ° The most important development in the recent years is the internet.REDUCED COST AND IMPROVEMENT OF COMMUNICATIONS AND TRANSPORTATION. © Fall in the real cost of transporting goods has allowed cheaper importation and exportation of goods. © Decline in the cost of communications has also helped this. © Improvements in transportation have also allowed firms to split up the production process to cash in on varying cost conditions in different parts of the world. © This has helped to facilitate the growth of TNCs.EREGULATION OF FINA MARKETS © There have been moves towards removing restrictions on the movement of financial capital between countries. ° Many countries have removed capital controls - made it easier for firms to operate globally, © Reinforced by developments in technology that enable financial transactions to be undertaken more quickly and efficiently - i.e. the Internet. ° Financial markets have increased globalization due to their being set up in various countries. © They allow for more interface and communication between different parts of the world over the trade of financial assets.INCREASED SIGNIFICANCE OF TNCs After the Second World War more economic power was shifted to corporations - accelerated growth. © TNCs have grown even further due to favorable corporation tax rates in many countries and tax breaks, as TNCs supposedly bring in more jobs. © TNCs partake in foreign direct investment, which increases the integration of economies. e Many TNCs want to gain entry to, for example, the EU due to its single market, and China due to its large and growing market.EFFECTS OF GLOBALIZATIONad x4 , Globalization has led to increase in competition.Globalization has led to increase in investment levels and rise in opportunities.SS—S—_____ a MARUT:p»sé S Sw2zuiKs Way of Life! Globalization causes exchange of technology. Globalization helps in knowledge and information transfer across the globe.Globalization has led to vast Multinational and multicultural management.accenture High performance. Delivered. Globalization leads to Procurement & Outsourcing. Accenture provides Procurement & Outsourcing services includes sourcing, demand management, invoice processing, travel and expense processing, contract administration and many more.GDP growth rate % -~GDP 6 growth rate % 4 1989 1990 1991 1992 1993 1995 1996 2004 2005 2006 2007 The graph depicts India’s GDP growth rate hence globalization has led to economic development.Acoca- cola stall outside the Grand Gateway 66 shopping mall in Xujiahui , Shanghai About 85% of Dubai's population consists of migrant workers, a majority of whom are from IndiaADVANTAGES OF GLOBALIZATIONHindustan Motors Ms BOER Count on ue Cheaper Goods For Consumers and Better Product Quality: Increased competitiveness may also lead to decline in the price of goods, improvements in quality of goods and choice of goods. »Increase In Skilled Workers: Increased international labor mobility has led to an increase in skilled workers .Lower Cost of production: Nike shoes are made in Vietnam due to lower cost of production.Improvement In Education: The spread of the internet has helped to improve education.Cultural Diversity: Increased movement of labor leads to an increase in the spread of different cultural ideas.Reducing Poverty | | Poverty Reduction: GDP of the developing countries has increased twice as much as beforeTransportation Globalization has led to tremendous increase in transport services across the globe.DIAGEO ke in the In liquor i y United Spirits.DISADVANTAGES OF GLOBALIZATIONIncreased Commodity Price: Prices then and now have increase tremendously.working day and night to ittle money.Cause Of Diseases: It is the cause of very serious health problems all over the globe,Increased Relative Poverty and Inequality: We have everything by globalization, we have nothing by globalization.Increased Vulnerability And Instability: The international Coffee chains are causing a serious threat to local coffee shops.Disparity: The Economic system that has generated tremendous wealth disparity that really seems unfair.The top 10% The bottom 90% waitbutwhy.com Uneven Wealth Distribution: The rich are getting richer and the poor are getting poorer.People are re: extra money fora 1 product that may be available at a lower price. This is because of the modern marketing techniques like advertising and branding. The local players suffer huge losses as they lack the potential to advertise or export their products on a large scale. Therefore the domestic markets shrink. es r BueHOW CAN COMPANIES CAN ENTER FOREIGN MARKETS? Export - Direct & Indirect JV - Joint Ventures Mergers and Acquisitions Licensing, Franchising Strategic Alliances Management Contracts Contract Manufacturing FDI - Foreign Direct Investments391 a LePEPSI’S ENTRY INTO INDIA ° Pepsi, in 1988, tried really hard to enter the Indian market since they realized that the US market had seemed to be reaching its saturation level. Also, India was a market that every MNC wanted to enter due to the vast population. e Earlier, in 1977, Coca-Cola had been thrown out of India. In 1980's economy was marked by high government interventions which made it even more difficult for Pepsi to launch in India.A LETTER TO PEPSI “I learned that you are coming here. I am the one that threw Coca- Cola out, and we are soon going to come back into the g overnment. If you come into the country, you have to re member that the same fate awaits you as CocaCola.” George Femandes The General Secretary - Janta Dal 39SSN ope se cl the very lorereanevey totems 4 Come to lif¢Breakthrough: Liberalization in IndiaCONCLUSION * Globalization is the key factor for international business. © This new era of globalization brings with it opportunities and also new considerations and challenges with the dynamics of a free market. * Globalization grant access to benefit from the international division of labor, technologies, international specialization, inter-cultural exchange and the consumers enjoy a wider variety of products at lower prices. e With globalization, there comes a higher level of thinking and strategizing. Business evolves in new ways.REFERENCES * http://wwwglobalizationio. org/what-is-THE 4th INDUSTRIAL REVOLUTION K. SCHWAB, WORLD ECONOMIC FORUMOS y Ms Pe oy Ain 4 fea |aatl Industrial RE ‘ SRevi cael = i a“We are at the beginning of a revolution that is fundamentally changing the way we live, work and relate to one another"pa Electricity ‘The Second industit eae aed Cee tmWe Are All Moving Forward fee il aria“af eS EEE. Mechanisation, Mass production Computer Cyber physical water power, steam power assemblyline, electricity and automation systemsPhysical vigtal CVU Sa BiologicalMEGATRENDS boats e + 3D printing, (addi baad range of apg (medial iy + New materials i adagtve smart y i -MEGATRENDS are a bridge between physical * LoT: (internet of thi (proc + Blockehai new approaches for engagement and olaboration blockchain creates trast wit trl part hing supa andMEGATRENDS has been achieved in educng costs. + Genome: today a genome can be sequencedin afew hours (more then 1Oyesrs and €2.78ilion to complete Human Genome Project + Synthetic biology customising oganism by writing OMA. * Data: increase medicine precstor-with targeted therapies.ANIMPACT 01.ECONOMY abs : Cotical dimensions: + Growth: technology andinnewation are at an inflection point and wilson unleash surge in producti. + Employment: new technologies wllcramaticaly change the nature of work across al industries + New Skills: owskjbsin term of automation wil be thase that require decison malang under uncenainty + Nature of work: wo fore wil do a prtalio of things to generate incomeee a e Sa ane) “nt er OAC EL CTE TC) Sa or anticip af ee it | | HiIMPACT 02.BUSINESS Aspects ta understand + Customer expectations: ming ta 3 orld of continuous sustment and refinement whe ensuring that the human di remains the * Data-enabled products dats andanalyt + New Collaborations: no partnerships bu + New operating models: alvaysin“bets This now-world requires companies to respond in real time wherever they are.a Teme See celal TEM MC Rel Celeh) Darwinian pressures and as such, the philosophy of “always in beta’ (always CCT MMLC MTC) ELC a (estan) Cue rece ao aeIMPACT 03.NATIONAL Cities need to act like , they have to compete in attracting talents.MeCN eH eM em eke tla Pen Eee Ree) to new scientific, technological, Teme m lel B els ee ci Pera) Sener eee iconIMPACT 04.SOCIETY embracing traditonal va Belonging to 8 communty todey is morecefined by personal projects and individuals values rather than by spaces, work or fami One effect of digitalisation is the emergence of the “ society.IMPACT 05.INDIVIDUAL The fourth industrial evokionts nat only changing what wed but also who we are Iti change our identity inmany aspects * ownership onsumations + time forwork + time fortasureBE RU EL MIN i aera STMT Te Tia 11 Bele nene And in an age of distraction, nothing is so luxurious as paying =! ehtion” Lan ele ob atheSOURCES lle cree rum: Of watt patie by Beye NA Cet rad Fo Tesh indeaal Relic, The Fouthinduarlveciton: Doornaray iaondanuonbe coat