GLOBALIZATION

TABLE OF CONTENTS

REASONS FOR
01 ORIGIN AND NATURE 02 GLOBALIZATION

SALIENT FEATURES OF POSITIVE AND NEGATIVE

03 GLOBALIZATION 04 CONSEQUENCES OF
GLOBALIZATION
ETHICAL ISSUES ON
05 GLOBALIZATION 06 SOLUTIONS TO ETHICAL
PROBLEMS OF
GLOBALIZATION
 GLOBALIZATION
Globalization is a term used to describe the
changes in societies and the world economy
that are the result of dramatically increased
trade and cultural exchange. In specifically
economic contexts, it refers almost exclusively
to the effects of trade, particularly trade
liberalization or "free trade".
It is a common belief that globalization plays a
role just at international levels of trade and
commerce, but the fact is that it has played an
important role in making our lives much more
comfortable too. The phones, apparels, gadgets
or accessories that we use in our day-to-day
life are be available to us through globalization.
Knowingly or unknowingly, we are all under the
impact of globalization, and more importantly
it has helped in bringing international peace
and justice to mankind.
 01
ORIGIN AND NATURE
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 an hi st or ic al proc ess that began
Globalization is Africa
em ent of people out of

ORIGIN
wit h th e fir st m ov ort or
ot he r pa rt s of th e world. Traveling sh
into rs
st an ce s, m ig ra nt s, merchants and othe
long di ucts
liv er ed th ei r id ea s, customs and prod
have de d
elding, borrowing an
to new lands. The m nces are found in m
any
ou tsid e in fl ue

AND
adaptation of
areas of human life.
w
st -1 94 5 pr oc es s, the result of the ne
A po
tr an sp or t an d te le communications
technologies in ile
e ca pi ta l an d m arkets far more mob

NATURE
that m ad
than before

by an en ab lin g id eology – aggressive

Facilitated ss ed private enterprise
m – w hi ch st re
individualis ec tion and provision
e of stat e pr ot
at the expens
 02
REASON FOR GLOBALIZATION
REASONS FOR GLOBALIZATION

● Rapid shrinking of time and distance across the globe.

● Domestic markets are no longer adequately rich.
● Companies go global to find political stability,which is relatively
good in other countries.
● To get technological and managerial know-how.
● To reduce high transportation costs.
● To be close to raw materials and to the markets for their finished
products.
● The creation of WTO is stimulating increased cross border trade.
 1. Liberalisation

03
It stands for the freedom of the entrepreneurs
to establish any industry or trade or business
venture, within their own countries or abroad.
2. Free Trade

SALIENT FEATURES OF It stands for free flow of trade relations among

all the nations. Each state grants MFN (most
favoured nation) status to other states and
GLOBALIZATION keeps its business and trade away from
excessive and hard regulatory and protective
regimes

3. Globalization of Economic Activity

Economic activities are be governed both by

the domestic market and also the world market.
It stands for the process of integrating the
domestic economies with world economy.
THIS IS A MAP
4. Liberalisation of Import-Export System

It stands for liberating the import-export activity and securing a free flow of goods and services across
borders.

5. Privatisation

Keeping the state away from ownership of means of production and distribution and letting the free
flow of industrial, trade and economic activity across borders.

6. Increased Collaboration

Encouraging the process of collaborations among the entrepreneurs with a view to secure rapid
modernisation, development and technological advancement.
TABLE

7. Economic Reforms

Encouraging fiscal and financial reforms with a view to give strength to free world trade, free enterprise,
and market forces.

8. Several dimensions of Globalisation

Increased and Active Social, Economic and Cultural Linkages among the people. Globalisation has social,
economic, political cultural and technological dimensions. It involves all round inter-linkages among all
the people of the world.
 04
POSITIVE AND
NEGATIVE CONSEQUENCES
OF GLOBALIZATION
POSITIVE CONSEQUENCES
● Gives Access to a Larger Market
● Provides Cheaper Goods for Consumers
● Globalization Wets Countries do what They do Best
● Leads to Better Economies
● Promotes World Peace and Unity
● Innovation
● Better Quality and Variety
NEGATIVE CONSEQUENCES

● Causes Environmental Damage

● Causes Fluctuation of Prices
● Job Insecurity
● Terrorism
● Price Instability
● Abandonment of Culture
 05
ETHICAL ISSUES
ON GLOBALIZATION
ETHICAL ISSUES ON GLOBALIZATION

● Labor standards
● Environmental standards
● Human rights
● Cultural diversity
● Corruption
 06
SOLUTION TO ETHICAL
PROBLEMS OF
GLOBALIZATION
SOLUTION TO ETHICAL PROBLEMS OF GLOBALIZATION
● Governments
The response of governments to the new scenario of international business was an attempt to
manage the globalization process by creating transnational norms for corporations.Over the years,
there has been growing awareness of the difficulties for nation states to solve a problem that is
essentially global. This is why governments have sought regional and global agreements such as the
Declaration on International Investment and Multinational Enterprises and the Declaration of
Fundamental Principles and Rights at Work
● Civil society
Global civil society actors have had some success in enforcing sanctions on companies engaging in
unethical behavior, mostly through activism against abusive practices. Soft law influences
corporate behavior, not through legal sanctions, but through awareness campaigns and boycotts. In
addition to boycotts triggered by specific situations, the global civil society has developed more
formal attempts to create socially responsible standards. The fair trade movement created a fair
trade certificate that guarantees that a product was not produced under abusive conditions and
that a fair price was paid for raw materials.
SOLUTION TO ETHICAL PROBLEMS OF GLOBALIZATION
● Corporations
The main response of corporations to the moral challenges of globalization has been the development of global codes of
ethics. The majority of individual company codes and industry-wide standards emerged after the mid-1970s. In the US, many
came as a response to foreign bribery scandals while others reacted to broadly calls for greater social responsibility

Codes of conduct help clarify internal policies and procedures, promote a common company identity among a diverse
international workforce and communicate standards to external stakeholders. Voluntary codes can help encourage
appropriate conduct and reduce pressures for mandatory government action.

In addition to individual codes of ethics, corporations also developed voluntary agreements on standards for international
business. In 1978, a group of US companies adhered to the Sullivan Principles for their operations in South Africa. They
agreed not to respect the discriminatory labor laws of apartheid and to put pressure on the South African government for
their abolition. The Sullivan Principles were a model for other voluntary codes such as the Caux Round Table, created in 1986
by former executives of multinational corporations in the USA, Europe and Japan.
 THANK YOU!
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