Globalization

Group 1
1. Mohit advani
2. Aarush Agarwal
3. Ridhima Ahuja
4. Aryan Baranwal
5. Taksh bhandri
 Meaning

 Globalizationrefers to the changes in the world where

we are moving away from self contained countries and
towards a more integrated world.
 Globalization of business is the changes in a business
from a company associated with a single country to
one that operates in multiple countries .
 The global economy

 Domestic business
 International business
 Multinational business
 Global business
 Globalization of Market
 Marketing globalization is a collaborative term combining the
promotion and selling of goods and services in an increasingly
interdependent and integrated global economy . It makes
companies stateless , without walls , with the internet and integral
marketing and cultural tool.
 Example – A number of consumer products has global acceptance
like coca cola , pepsi co , Levis ,etc.
 Reasons

 Increasing profits
 Growth opportunity
 Risk reduction
 Competition
 Mass production
 To catch the demand of the foreign market .
 The Effects of globalization

1. Changed food supply – Food supply is no longer tied to

the season. We can buy food anywhere in the world at any
time of the season.
2. Division of the labour – Because MNC’ s search
for the cheapest location to manufacture and
assemble components , production processes may be
moved from developed and developing countries
where costs are lower .
3. Less job security – In the global economy jobs are
becoming more temporary are insecure. A survey of
American workers showed that people now hold 7 to 10
jobs over their working life .
4. Damage to the environment – More trade means more
transport which uses more fossil fuels and causes pollution.
Climate change is a serious threat to our future .
 5. Cultural impact – websites such as YouTube connect people
across the planet . As the world becomes more unified , diverse
cultures are being ignored .
 MNC’s can create a mono culture as they remove local competition
and there by forces local firm to close .
 Processes of Globalization

 Strategic alliance – A corporative arrangement between

two or more firms for mutual gain .
 Joint venture – A special type of strategic alliance in
which the partners share ownership of a new enterprise .
 Direct investment – When a firm headquartered in one
country builds or purchases operating facilities or
subsidiaries in a foreign country .
 Benefits of Globalization

1. Increase in employment and income

2. Balanced human development
3. Lower price with higher quality
4. Free flow of technology
5. Increase in production and consumption
6. Transportation
7. Goods and services .
Thank You