What are Economies of Scale?

Economies of scale refer to the cost advantages that a company or organization can achieve by
increasing the scale of its production or operations. In other words, as the size of a business or
operation increases, its cost per unit of output decreases, leading to increased efficiency and
profitability.

There are several ways in which economies of scale can be realized, including: Below is Internal
economies of Scale.

• Technical economies: As a business grows, it can invest in more advanced technology, which
can increase productivity and reduce costs.
• Managerial economies: larger businesses can often afford to hire specialized managers and
other professionals to handle specific tasks, such as accounting or marketing.
• Financial economies: larger companies may be able to access cheaper financing, due to their
size and creditworthiness.
• Purchasing economies: larger companies can often negotiate better deals with suppliers,
due to their size and purchasing power.
• Marketing economies: larger companies can often spread marketing costs across a larger
customer base, reducing the cost per customer.

Overall, economies of scale can lead to increased competitiveness, improved profitability, and
lower prices for consumers. (These are advantages as well)

External Economies of Scale

External economies of scale, on the other hand, are achieved because of external factors, or factors
that affect an entire industry. That means no one company controls costs on its own. These occur
when there is a highly-skilled labour pool, subsidies and/or tax reductions, and partnerships and joint
ventures—anything that can cut down on costs to many companies in a specific industry.
Examples of economies of scale:

• Manufacturing: A factory that produces 1,000 units of a product may have a higher cost per
unit than a factory that produces 10,000 units of the same product. This is because the larger
factory can spread fixed costs (such as rent and machinery) across a larger number of units,
reducing the cost per unit.
• Retail: A large retail chain can purchase products in bulk, allowing them to negotiate lower
prices from suppliers. This reduces the cost per item and can lead to lower prices for
customers.
• Finance: A bank that expands its operations can benefit from economies of scale in several
ways. For example, it can spread its fixed costs (such as rent and salaries) across a larger
customer base, reducing the cost per customer. It may also be able to negotiate better deals
with vendors and access cheaper financing due to its size and creditworthiness.
• Transportation: A shipping company that operates a larger fleet of ships or planes can
spread its fixed costs (such as maintenance and fuel) across a larger number of shipments,
reducing the cost per shipment.
• Technology: A software company that develops a product can benefit from economies of
scale by distributing the cost of development across a larger customer base. For example, the
cost of developing a software program can be spread across thousands or even millions of
customers, reducing the cost per user.
Limits to Economies of Scale

• Management techniques and technology have been focusing on limits to economies of scale
for decades.
• Set-up costs are lower due to more flexible technology. Equipment is priced more closely to
match production capacity, enabling smaller producers such as steel mini-mills and craft
brewers to compete more easily.
• Outsourcing functional services makes costs more similar across businesses of various sizes.
These functional services include accounting, human resources, marketing, treasury, legal,
and information technology.
• Micro-manufacturing, hyper-local manufacturing, and additive manufacturing (3D Printing)
can lower both set-up and production costs. Global trade and logistics have contributed to
lower costs, regardless of the size of an individual plant.
• According to the International Monetary Fund, the prices of both capital goods and the cost
of machinery and equipment have been falling in emerging, developed, and even industrial
countries for the past three decades.

What are Economies of Scope?

Economies of scope refer to the cost advantages that arise when a company produces a range of
products or services using the same resources, such as facilities, employees, and technology. In other
words, it's the cost advantage a firm gain by producing a variety of products or services, rather than
just specializing in one.
For example, if a company produces both shoes and handbags, it can benefit from economies of
scope by using the same production facilities, equipment, and raw materials for both products. By
doing so, the company can reduce its overall costs and achieve greater efficiency compared to
producing shoes or handbags separately.

Economies of scope can also arise when a company offers complementary products or services. For
example, a company that produces computers may also offer software and accessories. By offering
these complementary products, the company can increase customer satisfaction and loyalty, as well
as capture more of the customer's spending.

Overall, economies of scope allow companies to achieve cost savings, increase efficiency, and offer
more value to customers, which can lead to a competitive advantage and increased profitability.

What are the types of Economies of scope?

There are two main types of economies of scope:

• Related Economies of Scope: Related economies of scope refer to cost savings that arise
from producing related products or services together. For example, a company that produces
both shoes and handbags can achieve related economies of scope by using the same
production facilities and distribution channels for both products. This can result in cost
savings on production, inventory management, and distribution, which can increase
efficiency and profitability.
• Unrelated Economies of Scope: Unrelated economies of scope refer to cost savings that
arise from producing unrelated products or services together. For example, a company that
produces both shoes and bicycles can achieve unrelated economies of scope by using the
 same raw materials or production facilities for both products. This can result in cost savings
on inputs, production, and distribution, which can increase efficiency and profitability.

Both related and unrelated economies of scope can help companies achieve cost savings and
efficiency gains, which can increase profitability and competitiveness. However, related economies
of scope may be more common in practice, as companies often produce related products or services
that can be bundled together to create more value for customers.

Examples of Economies of Scope?

Here are some examples of economies of scope:

• Coca-Cola: Coca-Cola is a good example of a company that benefits from economies of

scope. The company produces a variety of soft drink brands such as Coke, Sprite, and Fanta.
By using the same production facilities and distribution channels for all of its products, Coca-
Cola can achieve cost savings on production and distribution.
• Amazon: Amazon is another example of a company that benefits from economies of scope.
The company produces a range of products, including Kindle e-readers, Fire tablets, and
Amazon Echo smart speakers. By offering these complementary products, Amazon can
capture more of the customer's spending and achieve cost savings on production and
distribution.
• Toyota: Toyota is a good example of a company that benefits from both related and
unrelated economies of scope. The company produces a range of cars and trucks, as well as
related products such as engines and transmissions. By using the same production facilities
and technology for all of its products, Toyota can achieve related economies of scope.
Additionally, by producing unrelated products such as sewing machines and industrial robots,
Toyota can achieve unrelated economies of scope by sharing production facilities and
technology across different product lines.
• Procter & Gamble: Procter & Gamble is another example of a company that benefits from
economies of scope. The company produces a range of consumer products, including
laundry detergents, shampoo, and baby care products. By using the same production
facilities and distribution channels for all of its products, Procter & Gamble can achieve cost
savings on production and distribution, which can increase efficiency and profitability.

Born Global VS Uppsala models.

Born Global and Uppsala models are both theories that explain how firms internationalize, but they
differ in their approach.

• Born Global Model: The Born Global model suggests that some firms can achieve rapid and
significant internationalization soon after their inception. These firms are often small and
have limited resources, but they leverage technology and networks to rapidly enter
international markets. The Born Global model suggests that firms can achieve rapid
internationalization by taking advantage of technological advances, global networks, and a
willingness to take risks. This model is often associated with the digital economy, where
companies can quickly establish a global presence through online platforms and digital
marketing.
• Uppsala Model: The Uppsala Model, also known as the Internationalization Process Model,
suggests that firms gradually increase their international involvement over time. According
to this model, firms begin by exporting to foreign markets, then establish sales subsidiaries,
and finally invest in production facilities overseas. The Uppsala model suggests that firms
 internationalize incrementally, based on their knowledge and experience in foreign markets.
This model is often associated with traditional manufacturing and service industries, where
firms need to establish relationships with customers and partners over time.

In summary, the Born Global model suggests that some firms can achieve rapid internationalization
through technology and networks, while the Uppsala model suggests that firms gradually increase
their international involvement over time, based on their knowledge and experience in foreign
markets.

Examples of Born Global and Uppsala models

Born Global Model

• Skype
• TransferWise
• Hootsuite
• Spotify
• You Tube
• Zoom

Uppsala Model

• IKEA
• McDonald's
• Nestlé
• Coca-Cola
• Procter & Gamble

What is Bartlett and Ghoshal model?

The Bartlett and Ghoshal model, also known as the "transnational model," is a strategic framework
developed by management scholars Christopher A. Bartlett and Sumantra Ghoshal. The model
provides a framework for multinational companies to design their organizational structures, systems,
and processes to manage their operations globally effectively.

The Bartlett and Ghoshal model identifies four strategic options for multinational companies to
pursue based on the level of integration and responsiveness needed in different markets:

• Multidomestic: In this approach, a company decentralizes its operations to allow each

subsidiary to operate autonomously in the local market. This approach is best suited for
companies that operate in diverse markets where customer needs and preferences vary
significantly.
• Global: In this approach, a company centralizes its operations and coordinates them on a
global scale. This approach is best suited for companies that have standardized products or
services that can be sold in similar ways in multiple markets.
• International: In this approach, a company focuses on exporting its products or services to
other countries. This approach is best suited for companies that have unique or specialized
products that are difficult to replicate in other markets.
• Transnational: In this approach, a company integrates global and local operations to create a
network of subsidiaries that work together to achieve strategic goals. This approach is best
 suited for companies that operate in complex and diverse markets, where they need to
balance global coordination and local responsiveness.

Overall, the Bartlett and Ghoshal model helps multinational companies develop a strategic approach
that balances the need for global coordination and local responsiveness in a rapidly changing global
business environment.

Video Link of Bartlett and Ghoshal model –

• https://youtu.be/oMeWOI9cOx4
• https://youtu.be/C9NxcRCZsxQ
• https://youtu.be/GVFeq9NvgjU

Examples of The Bartlett and Ghoshal model

• Multidomestic: McDonald’s, Nestle, MTV, Virgin Group, Phillips

• Global – Intel, Pfizer, Caterpillar Inc., Apple.
• International: Porsche
• Transnational: Unilever,Nike, Samsung .

Advantages of The Bartlett and Ghoshal Model

The Bartlett and Ghoshal model offers several advantages for multinational companies that adopt it
as their strategic framework:

• Strategic clarity: The Bartlett and Ghoshal model provides a clear understanding of the
strategic options available to multinational companies. By choosing one of the four strategic
options, companies can focus their resources and efforts on a specific approach that aligns
with their goals and capabilities.
• Flexibility: The model recognizes that the best approach for a multinational company
depends on the specific markets it operates in, its competitive position, and its overall
strategy. The model offers four distinct options that allow companies to adapt their strategy
to different market conditions.
 • Improved coordination: By aligning their organizational structures, systems, and processes
with their chosen strategic option, multinational companies can improve coordination and
communication across their global operations. This can lead to increased efficiency, reduced
costs, and better decision-making.
• Local responsiveness: The Bartlett and Ghoshal model recognizes the importance of local
responsiveness for multinational companies operating in diverse markets. By allowing
subsidiaries to adapt to local market conditions, companies can improve customer
satisfaction and gain a competitive advantage.
• Global integration: At the same time, the model recognizes the need for global integration to
achieve economies of scale, share knowledge and best practices, and coordinate operations
across multiple markets. By centralizing certain functions and processes, companies can
achieve greater efficiency and effectiveness.

Overall, the Bartlett and Ghoshal model offers a comprehensive framework for multinational
companies to design their strategy and organization to effectively manage their global operations.
Disadvantages of Bartlett and Ghoshal Model

• Resource requirements: Implementing the Bartlett and Ghoshal model can be resource-
intensive, requiring significant investments in people, technology, and infrastructure. This
can be a challenge for smaller companies or those with limited resources.
• Risk of failure: Choosing the wrong strategic option or implementing it poorly can lead to
failure, which can be costly for multinational companies. Companies must carefully consider
the risks and challenges of each option and ensure that they have the capabilities and
resources to implement it successfully.

Here are some examples of companies that have switched between strategies in the Bartlett and
Ghoshal model:

• Coca-Cola: Coca-Cola is a global beverage company that has transitioned between the global
standardization strategy and the transnational strategy. In the 1980s, Coca-Cola used a global
standardization strategy, with a highly centralized approach to product development and
marketing. However, as competition intensified and customer needs became more localized,
Coca-Cola shifted to a transnational strategy, with greater local adaptation and
decentralization of operations. For example, Coca-Cola has localized its products and
advertising campaigns in different markets, while still maintaining a strong global brand.
• Unilever: Unilever is a multinational consumer goods company that has also switched
between the global standardization strategy and the transnational strategy. In the 1990s,
Unilever used a global standardization strategy, with a highly centralized approach to product
development and marketing. However, as competition intensified and customer needs
became more localized, Unilever shifted to a transnational strategy, with greater local
adaptation and decentralization of operations. For example, Unilever has adapted its
products and marketing campaigns to local cultures and preferences, while still leveraging its
global scale.
• McDonald's: McDonald's is a global fast-food chain that has transitioned between the
multidomestic strategy and the transnational strategy. In the early days of its international
expansion, McDonald's used a multidomestic strategy, with highly decentralized operations
in each country where it operated. However, as competition intensified and customer needs
 became more global, McDonald's shifted to a transnational strategy, with a greater focus on
global integration and sharing best practices across its operations. For example, McDonald's
has standardized some of its core products and processes across the world, while still
adapting to local tastes and preferences.
• Apple: Apple is a global technology company that has also switched between the global
standardization strategy and the transnational strategy. In the early days of its international
expansion, Apple used a global standardization strategy, with a highly centralized approach
to product development and marketing. However, as competition intensified and customer
needs became more localized, Apple shifted to a transnational strategy, with greater local
adaptation and decentralization of operations. For example, Apple has customized some of
its products and services for different regions and markets, while still maintaining a
consistent brand image and user experience.

Explain Characteristics of VUCA environment in and its Impact on decision making?

Here are a few examples of companies that have gone through VUCA conditions:

• Nokia: Nokia was once the world's largest manufacturer of mobile phones, but the company
struggled to keep up with the rapid changes in the smartphone market. Nokia failed to
respond quickly enough to the emergence of the iPhone and the Android operating system,
and eventually sold its mobile phone business to Microsoft.
• Kodak: Kodak was once a dominant player in the film and camera industry, but the company
failed to adapt to the digital age. Despite inventing the first digital camera in 1975, Kodak did
 not prioritize the development of digital photography and eventually filed for bankruptcy in
2012.
• Blockbuster: Blockbuster was once the largest video rental chain in the world, but the
company failed to keep up with the rise of online streaming services such as Netflix.
Blockbuster struggled to adapt to the changing market conditions and eventually filed for
bankruptcy in 2010.
• Blackberry: Blackberry was once the leader in the smartphone industry, but the company
failed to adapt to the emergence of touch screen devices such as the iPhone. Blackberry
continued to focus on its physical keyboard and proprietary software, and eventually lost
market share to competitors.
• Sears: Sears was once one of the largest retailers in the world, but the company failed to
adapt to the rise of e-commerce and changing consumer preferences. Sears struggled with
declining sales and mounting debt, and eventually filed for bankruptcy in 2018.

Transatlantic trade (Slave trade) and its impact on cultures as it lasted for 400 years ,
what happened in Africa due to it, did it influence music, did it influence martial arts,
how disease got transported due to it ?
The Transatlantic Slave Trade, which lasted for approximately 400 years from the 16th to the 19th
century, had a profound impact on the cultures of Africa, the Americas, and Europe. Here are some
of the ways in which the slave trade impacted cultures:

• Impact on Africa: The slave trade had a devastating impact on Africa, as millions of people
were forcibly taken from their homes and sold into slavery in the Americas. This led to the
loss of entire generations of people and resulted in the breakdown of many African societies.
In addition, the slave trade disrupted local economies and created political instability in
many regions of Africa.
• Influence on music: The slave trade had a significant impact on music, as enslaved Africans
brought their musical traditions with them to the Americas. African rhythms, melodies, and
instruments influenced the development of many forms of music in the Americas, including
jazz, blues, and rock and roll.
• Influence on martial arts: The slave trade also had an influence on martial arts, as African
slaves brought with them the fighting techniques and practices of their native cultures.
These practices later influenced the development of martial arts in the Americas, including
Capoeira in Brazil.
• Transportation of disease: The slave trade also had a significant impact on the spread of
disease, as enslaved Africans were often transported in cramped and unsanitary conditions.
This led to the spread of diseases such as smallpox, measles, and yellow fever in both Africa
and the Americas.

Impact of Transatlantic Slave trade in Africa

The Transatlantic Slave Trade had a devastating impact on Africa, as millions of people were forcibly
taken from their homes and sold into slavery in the Americas. Here are some of the ways in which
the slave trade impacted Africa:

• Loss of people: The slave trade led to the loss of millions of people from Africa, many of
whom were young and in the prime of their lives. This resulted in the breakdown of many
African societies and disrupted local economies.
 • Political instability: The slave trade created political instability in many regions of Africa, as
powerful groups and individuals began to capture and sell people as a way to gain wealth
and power.
• Economic disruption: The slave trade disrupted local economies in Africa, as resources that
could have been used for economic development were instead directed toward the capture
and transport of slaves.
• Cultural loss: The slave trade led to the loss of many cultural traditions and practices in
Africa, as people were forcibly taken from their homes and transported to the Americas. This
included the loss of language, religion, and family structures.
• Developmental setback: The Transatlantic Slave Trade set back the development of Africa as
a whole, as it deprived the continent of millions of people who could have contributed to its
economic and social development.

The legacy of the Transatlantic Slave Trade can still be felt in Africa today, as many of the problems
created by the slave trade, such as political instability, economic disruption, and cultural loss,
continue to impact the continent.

How disease got Transported due to Transatlantic slave trade?

Enslaved Africans were forcibly transported across the ocean in crowded, unsanitary conditions, and
they often arrived in the Americas weakened and vulnerable to disease.

One of the most devastating diseases that was transported across the Atlantic was smallpox.
Smallpox was a highly contagious and deadly disease that had a major impact on indigenous
populations in the Americas. European colonizers and traders who had been exposed to smallpox in
their home countries brought the disease to the Americas, and it quickly spread through the
indigenous populations, who had no immunity to the disease.

Other diseases that were transported across the Atlantic through the slave trade included measles,
influenza, and yellow fever. Enslaved Africans were also exposed to new diseases in the Americas,
such as malaria and yellow fever, which were prevalent in tropical regions and had a significant
impact on the health of enslaved populations.

The spread of disease through the slave trade had a major impact on the health and mortality rates
of enslaved Africans, as well as on indigenous populations in the Americas. It also had economic and
political consequences, as disease outbreaks often disrupted trade and led to social and political
unrest.

The absolute cost advantage theory and comparative cost advantage theory
The absolute cost advantage theory and comparative cost advantage theory are two economic
theories that explain why countries specialize in producing certain goods and trade with each other.

The absolute cost advantage theory, proposed by economist Adam Smith, states that a country
should specialize in producing and exporting goods that it can produce more efficiently and at a
lower cost than other countries. For example, if a country can produce steel at a lower cost than
other countries, it should specialize in steel production and export steel to other countries. This
theory suggests that countries should focus on producing goods in which they have an absolute
advantage, regardless of whether other countries can produce the same goods more efficiently.

In contrast, the comparative cost advantage theory, proposed by economist David Ricardo, states
that a country should specialize in producing and exporting goods that it can produce more
efficiently than other goods it could produce domestically. For example, if a country can produce
wine more efficiently than it can produce wheat, it should specialize in wine production and export
wine to other countries while importing wheat. This theory suggests that countries should focus on
producing goods in which they have a comparative advantage, even if they do not have an absolute
advantage in those goods.

Both theories suggest that countries can benefit from trade by specializing in producing goods in
which they have a cost advantage and then trading with other countries for goods in which they have
a comparative disadvantage. By doing so, both countries can enjoy lower prices for the goods they
trade, leading to increased overall economic efficiency and prosperity.

Examples of the absolute cost advantage theory and comparative cost advantage theory

Examples of the Absolute Cost Advantage Theory:

• Saudi Arabia is known for its abundant oil reserves and efficient oil production facilities. As a
result, it has a cost advantage in producing and exporting oil to other countries.
• China has a low-cost labour force and advanced manufacturing facilities. This gives it a cost
advantage in producing and exporting goods such as textiles, electronics, and machinery.
• Brazil has a favourable climate for growing coffee beans, which makes it one of the world's
leading producers and exporters of coffee.
• The United States has a highly skilled workforce and advanced technology, which gives it a
cost advantage in producing and exporting goods such as airplanes, pharmaceuticals, and
software.

Examples of the Comparative Cost Advantage Theory:

• The United States has a comparative advantage in producing high-tech products such as
computer chips, while countries such as China and Mexico have a comparative advantage in
producing low-skilled labour-intensive products such as clothing and toys.
• India has a comparative advantage in the production of information technology services due
to its highly educated and skilled workforce, while countries like the Philippines and
Indonesia have a comparative advantage in call centre services due to their lower labour
costs.
• Japan has a comparative advantage in producing high-quality automobiles due to its
advanced manufacturing technology and skilled workforce, while Thailand has a comparative
advantage in producing rice due to its favourable climate for agriculture.
• Norway has a comparative advantage in producing fish and seafood due to its access to large
fishing grounds and advanced fishing technology, while Sweden has a comparative advantage
in producing furniture and other wood products due to its vast forests and skilled labour
force.

Intra Industry and Inter Industry Trade

Intra-industry trade and inter-industry trade are two types of international trade that involve the
exchange of goods and services between countries.

Intra-industry trade refers to the exchange of similar products between countries that are at a similar
level of development and produce similar goods. For example, two countries that produce cars may
trade cars with each other. Intra-industry trade can also occur in the service sector, such as the
exchange of financial services or software development services between countries.
Inter-industry trade, on the other hand, refers to the exchange of different products between
countries that have different levels of development or produce different goods. For example, a
country that produces cars may trade cars with another country that produces textiles. Inter-industry
trade can also occur in the service sector, such as the exchange of tourism services or education
services between countries.

Examples of Intra-industry trade:

• Japan and South Korea exchange similar products such as electronic goods and automobiles.
• Germany and France exchange similar products such as machinery and industrial equipment.
• The United States and Canada exchange similar products such as pharmaceuticals and
medical devices.

Examples of Inter-industry trade:

• The United States exports aircraft and imports textiles from countries like China and
Bangladesh.
• Norway exports oil and imports clothing from countries like India and Bangladesh.
• Japan exports electronics and imports food products from countries like Australia and New
Zealand.

One example of a region that has specialized in a specific industry through intra-industry trade is the
Mittelstand region in Germany. The Mittelstand is a group of small and medium-sized enterprises
(SMEs) that specialize in the production of high-quality, niche products such as machinery,
electronics, and chemicals. These companies often rely on intra-industry trade with other countries
that have a similar level of development and a demand for their products.

Why is China trying to dominate air, water , road, space , rail, BRI

https://www.airuniversity.af.edu/JIPA/Display/Article/3111114/assessing-chinas-motives-how-
the-belt-and-road-initiative-threatens-us-interests/

https://www.iwp.edu/articles/2020/06/17/a-truly-friendly-neighbor-the-motivations-behind-
chinas-belt-and-road-initiative-in-its-periphery/

https://www.theguardian.com/science/2023/jan/02/china-moon-nasa-space-race

Climate change and its sustainability (NYT Article on Russia and Canada gains from climate change)

https://www.nytimes.com/interactive/2020/12/16/magazine/russia-climate-migration-crisis.html

https://www.nytimes.com/2021/10/22/world/europe/russia-arctic-climate-change-putin.html
China is investing heavily in Serbia.

https://edition.cnn.com/2019/09/14/europe/serbia-china-investment-intl/index.html

https://www.rferl.org/a/serbia-china-investment-sewage-transparency-corrruption/31697677.html

https://sundayguardianlive.com/world/china-plans-replace-russia-serbias-bestie

https://edition.cnn.com/2019/09/14/europe/serbia-china-investment-intl/index.html
Countries that will gain from climate change.

https://www.theatlantic.com/magazine/archive/2007/04/global-warming-who-loses-and-who-
wins/305698/

Factors that drive globalization

There are several factors that drive globalization, including:

• Technological advancements: The development of communication and transportation

technologies has made it easier and cheaper for people and businesses to connect and trade
across borders.
• Economic liberalization: The removal of barriers to trade and investment, such as tariffs and
quotas, has facilitated the flow of goods and capital across borders.
• Multinational corporations: The growth of multinational corporations has allowed
businesses to operate across multiple countries and continents, facilitating the transfer of
capital, knowledge, and technology.
• Cultural exchange: The exchange of cultural ideas and practices, facilitated by travel and
communication, has led to a greater understanding and appreciation of different cultures
around the world.
• Political factors: The development of international institutions such as the World Trade
Organization and the United Nations has encouraged countries to cooperate and work
together on issues such as trade and security.
• Demographic changes: Globalization has been driven in part by demographic changes such
as population growth, urbanization, and increasing levels of education.

While globalization has brought many benefits, such as increased economic growth and cultural
exchange, it has also raised concerns about issues such as inequality, environmental degradation,
and loss of national sovereignty.

https://www.iqualifyuk.com/what-are-the-factors-that-drive-
globalisation/#:~:text=These%20factors%20include%3A%20the%20digital,need%20for%20economie
s%20of%20scale.

https://tyonote.com/driving_forces_of_globalization/

https://penpoin.com/globalization/
Factors restricting Globalization (Deglobalization)

https://www.chathamhouse.org/2021/10/what-deglobalization

https://www.bruegel.org/sites/default/files/wp-content/uploads/2020/02/Globalization-
desglobalization.pdf
There are several factors that can restrict globalization or lead to "deglobalization," including:

• Trade barriers: The imposition of trade barriers such as tariffs, quotas, and other restrictions
on imports and exports can limit the flow of goods and services across borders.
• Protectionism: Protectionist policies that favour domestic industries and limit foreign
competition can also restrict globalization.
• Nationalism: Nationalistic sentiment and political movements that prioritize national
interests over global cooperation can also lead to deglobalization.
 • Political instability: Political instability, conflicts, and wars can disrupt international trade and
investment, limiting globalization.
• Economic inequality: Growing economic inequality and disparities between countries can
lead to resistance against globalization and calls for protectionist policies.
• Environmental concerns: Environmental concerns such as climate change and resource
depletion can also lead to restrictions on global trade and investment.
• Technological disruptions: Disruptions in technology, such as automation and artificial
intelligence, can also impact globalization by changing the nature of work and the demand
for labour.
However, it is important to note that while deglobalization may limit some aspects of globalization, it
is unlikely to completely reverse the trend of increasing global interconnectedness that has been
occurring over the past few decades.
Swadeshi companies prior to independence companies like GD Pharmaceutical

https://www.thebetterindia.com/173787/bengal-boroline-gd-pharmaceutical-swadeshi-movement-
india/

Duckback

https://armchairjournal.com/swadeshi-products-in-british-indias-bengal/

https://www.thehindubusinessline.com/blink/cover/the-story-of-duckback-
company/article31979684.ece

Attack Strategy(frontal , encirclement, Flank) vs Defence Strategy( Mobile defence, fortification)

In the corporate world, attack strategies are commonly used in competitive markets to gain market
share, increase profits, or eliminate competition. The three main types of attack strategies are
frontal, encirclement, and flank.

1. Frontal Attack Strategy: The frontal attack strategy is a direct approach to competition,
where a company attacks its competitor's strengths. This strategy is used when a company
has superior resources and wants to overpower its competitor. The frontal attack strategy
aims to take over the market share of the competitor by attacking its main products or
services, pricing, distribution channels, or advertising. The frontal attack strategy is most
effective when a company has a superior product or service that can easily compete with the
existing products in the market.
Example: In the 1980s, Coca-Cola launched a frontal attack strategy against PepsiCo by
introducing a new formula called New Coke. The company believed that New Coke had
superior taste and could compete with PepsiCo's products. However, the strategy backfired,
and Coca-Cola was forced to bring back the original formula after public outcry.

2. Encirclement Attack Strategy: The encirclement attack strategy involves attacking the
competitor from multiple angles by introducing a range of products or services. This strategy
is used when a company wants to create a dominant position in the market by surrounding
its competitor with its products or services. The encirclement attack strategy aims to weaken
the competitor's position by offering a variety of products or services at different prices.

Example: Samsung used an encirclement attack strategy against Apple by introducing a range
of smartphones at different price points. Samsung offered smartphones with larger screens,
 better cameras, and more storage options than Apple. As a result, Samsung was able to
capture a significant share of the smartphone market.

3. Flank Attack Strategy: The flank attack strategy involves attacking the competitor's weaker
areas, such as product lines, geographic areas, or distribution channels. This strategy is used
when a company wants to avoid a direct confrontation with the competitor's strengths. The
flank attack strategy aims to create a foothold in the market by attacking the competitor's
vulnerable areas.

Example: Uber used a flank attack strategy against traditional taxi companies by introducing
a ride-sharing service that was cheaper and more convenient than traditional taxis. Uber
created a new market by targeting customers who were dissatisfied with the traditional taxi
service. As a result, Uber was able to capture a significant share of the transportation
market.

https://getlucidity.com/strategy-resources/the-ultimate-guide-to-attack-strategies/
In the corporate world, companies often adopt different defense strategies to protect themselves
from potential threats and attacks from competitors or external forces. Two commonly used defense
strategies are mobile defense and fortification, which are explained below with examples:
1. Mobile defense: This strategy involves staying flexible and adapting to changing market
conditions or competitive threats. The company keeps its resources and capabilities mobile,
enabling it to quickly move into new markets or change its product offerings in response to
changing customer demands. This strategy is especially useful for companies that operate in
rapidly changing industries or face intense competition.
Example: Apple Inc. is an example of a company that has successfully used mobile defense as
a strategy. The company continuously updates its product offerings to stay relevant in the
market, adapts to changing consumer preferences, and enters new markets to expand its
customer base. For example, Apple entered the wearable technology market with its Apple
Watch and launched a streaming service, Apple TV+, to compete with other streaming
platforms.

2. Fortification: This strategy involves protecting a company's existing market position by

building barriers to entry that make it difficult for competitors to enter the market. This may
involve building strong brand recognition, acquiring key patents or intellectual property, or
investing heavily in research and development to stay ahead of competitors.

Example: Coca-Cola Company is an example of a company that has used fortification as a

strategy to protect its market position. Coca-Cola has built a strong brand identity over the
years, investing heavily in advertising and marketing to create a strong emotional connection
with its customers. Additionally, the company has a large portfolio of patented products and
has invested heavily in research and development to stay ahead of competitors. These efforts
have made it difficult for new entrants to enter the soft drink market and challenge Coca-
Cola's market position.