Globalization Frm t

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GLOBALIZATION By:

Ibrahim Mulla

Sunay Khaire

Shilpi Jajodia



DEFINITIONS Globalization is “the process of social, political, economic,cultural, and technological integration among countries aroundthe world”

Globalization is nothing but the growing economic

independence through increasing cross- border transaction ingoods and services.

Globalization enables a business to operate and plan toexpand throughout the world.

Entire globe is becoming a single market.

In short, it is “The shift towards a more integrated andinterdependent world economy”



ROOTS

When did globalization begin?

Ancient trade routes – barter trade

Standard weights and measuresMercantilism – the highways of the seaPost WWII – institutions of global governancePast 1980s – Information & CommunicationTechnologies (ICT), globalization defined



DRIVERS

What drives globalization?Individual and social needs and aspirationsTechnological innovationReduced technological and economic barriers to trade

What are it‟s sustaining forces?Greater policy liberalizationGreater efficiency of business

Greater market accessIncreased flows of goods, services, and people

Developmentof new

technologies

Reducedbarriers to

trade

Search for competitiveadvantage



FEATURES

Globalization encompasses the following features:Operating & planning to expand businesses throughout theworld.Buying & selling goods and services from/to any country in theworld.Establishing manufacturing & distribution facilities in any part of the world.Product planning & development are based on the marketconsideration of the entire world,Setting the mind and attitude to view the entire globe as single

market.Erasing the differences between domestic & foreign marketSourcing of factors of production & inputs like raw materials,machinery, finance, technology ,human resources & managerialskills from the entire globe.



P ROS & C ONS Economic, Cultural & Political Aspect



P ROS – ECONOMICAL ASPECTS

Employees of atransnational corporationmay be well paid compared to other workers in the country.

Increased investment indeveloping countriesstimulates their economies .

Sharing of technological innovations is fast andfair

A wide range of products are available ataffordable prices due tofree trade

Free trade betweennations is established – countries can produce toits strengths and importthe goods it needswithout the threat of tariffs.



CONS – ECONOMICAL ASPECTS

Jobs are being outsourced fromdeveloped countries to lessdeveloped countries resulting inhigher unemployment.

Transnational corporations mayhave fewer environmental regulations to follow and canpay lower wages – they can„shop around‟ for best options

Corporate headquarters areusually located in the USA or western Europe resulting in

resentment in the accumulationof economic power

Cultural identity is lost due tomass use of western consumer products and entertainment

Transnational corporations arebecoming so large they arebeyond the power of smaller governments

Economies are linked due to

trade – economic hardship inone country will more greatlyaffect other nations

Profits usually do not stay indeveloping countries – they arereturned to developed world



P ROS – CULTURAL ASPECTS

Globalizations of communications sees greatquantities of information shared around the world.

The best of cultures can beshared and understood ona global scale.

There is more influx of information between twocountries, which do nothave anything in commonbetween them.

There is culturalintermingling and eachother is trying to know aboutthe other‟s culturalpreferences and in the

process of doing so, we areactually coming acrossthings that we like and inthe course of time adoptit .



CONS – CULTURAL ASPECTS

A small number of private mediacompanies decidedwhat information is to

be shared and shapepublic opinion throughsensationalization(bias).

Media andentertainment impact iswesternizing other cultures.

There are someexperts who think thatglobalization; alongwith the positive

aspects is also leadingto the incursion of negatives likecommunicablediseases and social

degeneration.



P ROS – P OLITICAL ASPECTS

Gradually there is a worldpower that is being createdinstead of compartmentalized power sectors. Politics is merging

and decisions that arebeing taken, are actuallybeneficial for people allover the world

Since we share financialinterests, corporate andgovernments are trying tosort out ecologicalproblems for each other

International agreementsare working towards tryingto protect the environmentfrom pollutants that causeglobal warming , destroying

ecosystems, and increasingacidity levels in seas andoceans

Communications allow for the message of politicalfreedom tyranny in thedemocracy to spreadglobally



CON – P OLITICAL ASPECTS

For nations that are at the receiver‟s end are alsogiving up the reins in the ends of a foreigncompany which might again lead to a sophisticatedform of colonization.



P ROS & C ONS – CAPITALIST ,

S OCIALIST & MIXED ECONOMY United States of America

China

India



C APITALIST ECONOMY - U.S.A.

The main aspect to the global spreadof capitalism is that of finance –financial trading is now a globalpractice.

The same products are being sold allaround the world. Conversely, youcan go anywhere in the world andbuy the same things.

Has led to global way of living, but it

really has lead to the standardizationof life.

Unfettered capital flows give the U.S.access to foreign investment andkeep interest rates low.

American companies havemigrated most of their manufacturing jobs to foreign

countries where it is cheaper todo business.

Service & technical jobs arecurrently undergoing a largeexodus to foreign labor.

U.S. employees can lose their comparative advantage whencompanies build advancedfactories in low-wage countries,making them as productive asthose at home.

PROS CONS



S OCIALIST ECONOMY - C HINA

Productivity grows more quickly whencountries produce goods andservices in which they have acomparative advantage. This hasfasten the living standards of China.

Global competition and cheapimports keep a lid on prices, soinflation is less likely to deraileconomic growth. Resulting in anincreasing GDP.

An open economy spurs innovationwith fresh ideas from abroad.

Export jobs often pay more than other jobs.

Multinational corporations are accused of social injustice, unfair working conditions(including slave labor wages and poor

living and working conditions).

Lack of concern for the environment,mismanagement of natural resources, andecological damage.

Multinational corporations which werepreviously restricted to commercialactivities are increasingly influencingpolitical decisions.

Globalization has led to exploitation of labor. Prisoners and child workers are

used to work in inhumane conditions

PROS CONS



MIXED ECONOMY - INDIA

o It has increased economic prosperity andopportunity of India.

o With globalization, there is a globalmarket for companies to trade their products and a wider range of options for people, to choose from among theproducts of different nations.

o Has led India with higher degrees of political and economic freedom in the

form of democracy.o Improved standard of living – reduction in

poverty by providing jobs (Outsourcing).

o The focus is diverted and segregatedamong all the nations. No countryremains the single power

Companies are as opening their counterparts in other countries. This resultsin transferring the quality of their product to

other countries, thereby increasing thechances of depreciation in terms of quality.

The threat that the corporate would rule theworld is on high, as there is a lot of moneyinvested by them.

It is often argued that poor countries areexploited by the richer countries where thework force is taken advantage of and lowwages are implemented.

PROS CONS



CONCLUSION Globalization is the “LIFE LINE” of World Scenario

and…



It could involve all these things....

Where......



Stock Markets are now accessible from anywhere inthe world....

But also....



How far does trade help children like these...

So to conclude ....



Globalization is the process whereit is helping in growth some

countries economy and haltssome countries economies.



THANK YOU !!Have A Good Day

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Globalization Frm t