GLOBALIZATION
UNIT1-2
Concept of Globalization , various types of
Globalization of Business
It refers to the intensification of cross national
economic, political, cultural, social and technological
interactions that leads to the establishment of
transactional structure and integration of economic,
political and social process on a global scale.
Globalization has become the buzzword that has
changed human lives around the world in variety of
ways
Growing integration of societies and national
economies has been discussed mostly in recent years
Integration of the domestic economy with the rest of
the world
It refers to the free cross boarder movement of
goods, services, capital, information and people
It is the process of creating networks of
connections among actors at multi
continental distances
Means of transport
Reduction in the transport costs
Flow of goods and services from one country
to another country
International communication-internet-E-
Commerce
GLOBAL VILLIAGE-Enable the people on a
Global scale –no boundaries
Buzzwords-
Westernization
Americanization
Walmartization
Mc Donaldization
Coca-colonization
Globalization means free
movement of inputs as well as
the outputs
Globalization is the process of
integration and convergence of
economic, financial , cultural and
political systems across the world
Localization, GLOBALIZATION&
Glocalization
LOCALIZATION
internationalization and localization (other correct spellings are
internationalisation and localisation) are means of adapting computer software to
different languages, regional differences and technical requirements of a target
market. Internationalization is the process of designing a software application so
that it canpotentially be adapted to various languages and regions without
engineering changes. Localization is the process of adapting internationalized
software for a specific region or language by adding locale-specific components
and translating text. Localization (which is potentially performed multiple times,
for different locales) uses the infrastructure or flexibility provided by
internationalization (which is ideally performed only once, or as an integral part of
ongoing development).[1]
GLOCALIZATION
Glocalization is the concept that in a global market, a product or service is more
likely to succeed when it is customized for the locality or culture in which it is
sold.
GLOCALIZATION
Glocalization is the concept that in a global
market, a product or service is more likely to
succeed when it is customized for the locality
or culture in which it is sold.
The term, which combines the words globalization and
localization, first appeared in the late 1980s in articles by
Japanese economists in the Harvard Business Review.
According to the sociologist Roland Robertson, who is
credited with popularizing the term, glocalization describes
the tempering effects of local conditions on global pressures.
At a 1997 conference on "Globalization and Indigenous
Culture," Robertson said that glocalization "means the
simultaneity --- the co-presence --- of both universalizing
and particularizing tendencies."
Internationalization, an earlier term for globalization, is still
used in some industries when referring to preparing
products for international marketing.
The international fast food chain
McDonalds illustrates the concept of
glocalization by changing their menus to
appeal to local palates and customs.
For example, in India, a country in which
the cow is sacred, the menu features
McVeggies instead of hamburgers.
In Singapore, customers can order a
Chicken SingaPorridge; in Hong Kong,
some Seaweed Shake Shake Fries.
Globalization-A Holistic Approach
ECONOMIC GLOBALIZATION
The increasing integration of national economic
systems through growth of international trade
,investment and capital flows
Economic globalization constitutes integration of
national economies into international economy
through trade, direct foreign direct investments, short
term capital flows, international flows of workers and
humanity generally and flows of technology
Changes in capital flows
Transfer of technology
Interdependence of production
FINANCIAL GLOBALIZATION
Cross boarder capital flows
Integration of financial
services
Globalization of financial
markets
Exchange rate movements
CULTURAL GLOBALIZATION
Convergence of cross cultures
across the world may be termed
as cultural globalization
Coca-cola ,Levi’s Jeans, McDonald
sold in many countries
India’s rich cultural heritage has a
glorious history of globalization
Cross culture
Unity in diversity
POLITICAL GLOBALIZATION
The convergence of political
systems and processes around
the world is referred to as
political integration
DIMENSIONS OF ECONOMIC
GLOBALIZATION
Rapid growth in integration and
interdependence of economies
Globalization of Production
Globalization of Markets
Globalization of Competition
Globalization of Technology
Globalization of Corporations and
Industry
Factors Influencing Globalization
MOVERS /DRIVERS OF GLOBALIZATION
Economic liberalization
Manufacturing
Transportation
Information and communication
Multilateral institutions
International economic integration
Move towards free marketing systems
Rising R&D
Advents in logistics management
Emergence of global customer segments
Restraining Factors
Regulatory controls
Emerging new trade barriers
Cultural factors
Nationalism
Wars and Civil disturbances
Management Myopia /Narrow
mindedness
Essential Conditions for Globalization
Liberalizing the rules and regulation of control
Removal of quotas and tariffs
Providing freedom to the business and industry
Providing infrastructural facilities
Removal of bureaucratic hurdles
Encouraging R&D
Encouraging competitiveness based on quality,
price, delivery, customer service etc
Providing autonomy to the public sector to
compete with the private sector
Providing administrative and government support
Developing money and capital markets
Measuring Globalization
1.Trade openness
It is the percentage share of total trade
in total GDP
Total trade is arrived by summing up
exports and imports of goods and
credit debits of services
More Open Economies:
Singapore, Hongkong
Malaysia, Netherlands, Switzerland
LESS OPEN ECONOMIES
Us, Japan, Australia
India, Russia, France,UK
Brazil
KOF Index of Globalization-
Weights
Economic Globalization(36%)-
Long distance flows of goods, capital and services as
well as information and perceptions that accompany
market exchanges
Social Globalization (38%)-
It Is characterized by the spread of ideas,
information, images and people
Political Globalization(25%)-
It Is expressed as a diffusion of government policies
Higher value denotes higher degree of globalization
ADVANTAGES
FREE flow of capital and increase in the total capital employed
Free flow of technology
Increase in industrialization
Spread of production facilities through out the globe
Balanced development of world economies
Increase in production and consumption
Commodities at lower prices with high quality
Cultural exchange and demand for variety of products
Increases in jobs and income
Higher standards of living
balanced human development
Increase in welfare and prosperity
Disadvantages
Globalization kills domestic business
Exploits human resources
Leads to unemployment and under
employment
Decline in demand for domestic products
Decline in income
Widening gap between rich &poor
Transfer of natural resources
National sovereignty at stake
Leads to commercial and political
colonization
Globalization-Is a Myth or
Reality?
