Globalization & Business Environment

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Globalization & Business Environment

Chapter 5


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What is Globalization?

Globalization is the process of increasedintegration among countries most notably in

the areas of economics, politics, and culture.

Interdependence

Internationalization of brands

Outsourcing of production

Westernization


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Example of Globalization

It is possible that shirt which is being sold inUSA could have been made with Chinese

cotton sewed by Thai hands, shipped across

th

e Pacific on a French

freigh

ter crewed bySpaniards to a Los Angeles harbor. This

international exchange is just one example of

globalization


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Driving Forces of Globalization

Information Technology RevolutionSpeed & Cost of communication

Improvement in Transportation

Ex. Containerized shipping Easy access to capital

Lower wages & raw material cost


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Impacts of Globalization

Economic

Decline in Trade barriers

Increased international trade

Growth of MNCs

Outsourcing

FDI

Social

Cultural


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Advantages of Globalization

T

here is a worldwide market for t

he companies and for t

hecustomers there is a better access to products from different

countries.

There is a steady cash flow into the developing countries,

which gradually decreases the dollar difference.

Due to the presence of a worldwide market, there is an

increase in the production sector and there are lots of options

for investments for different companies.

The influx of information between two countries increases,

especially those nations who do not have anything incommon between them.

Cultural intermingling increases and every nation tries to

know more about the other nations cultural preferences.


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In this process, we are actually coming across things thatwe like and in the course of time adopt it.

Since we share financial interests, corporate andgovernments are trying to sort out ecological problemsfor each other.

Socially we have become more open and tolerant towardseach other and these who live in the other parts of the

world appear more approach

able th

an before. There is a lot of technological development that countries

have undergone over the years. Thus, helping in sharingof information and technology. This helps most of thedeveloping nations progress at the same speed as the

developed nations. Globalization helps in increase of demand of products.

This in turn increases rate of production. Manufacturersthus, find this profitable and helps in availability of more

jobs.


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Many people from developed nations are losing jobs and that

is posing a problem for them since the companies areoutsourcing work to developing countries since the cost oflabor is low and profits the company considerably.

There is immense pressure on the employed people ofdeveloped countries who are always under the threat of their

jobs being outsourced.

Corporates are building up units in other countries thatequally well equipped, thus transferring the quality to othercountries, thereby increasing the chances of depreciation in

terms of quality. There are some experts who think that globalization along

with the positive aspects is also leading to the incursion ofnegatives like communicable diseases and socialdegeneration.

Disadvantages of Globalization


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There is also a threat of corporates ruling the

world because there is a lot of power and money

invested by them due to globalization. Globalization may lead to loss of cultural identity

as Western ideas are always imposed upon theEastern thoughts.

It is often argued that poor countries areexploited by the richer countries where the work

force is taken advantage of and low wages are

implemented.


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Questions for a Globalized Economy

Does globalization enrich the many or the few?

Does it help or harm workers? the environment?

Is it a source of freedom or a barrier to freedom?

What role for the governments?

Is globalization inevitable?

Overall, is globalization a positive or a negative

development????


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Project Work

TitleIndian Telecom Industry Post Globalization

Contents

Introduction

Pre-globalization scenario of telecom

industry in India

Impact of Globalization-Economic

-Social & Cultural

Future Challenges & Opportunities

Conclusion

Globalization & Business Environment

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