globalisation ppt
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CO-OPERATIVES
AND RURAL
MARKETS
GLOBALISATION OF
BUSINESS
An international business – any business with international sales, sourcing, or investment
A multinational business – any business with productive activities in 2 or more
countriesA global business – a business that takes a global approach to production and sourcing (Coca-
Cola, Intel)
What is Globalization? The shift toward a more integrated and interdependent world economy.
Two components:The globalization of marketsThe globalization of production
Globalization of Production Vizio flat panel TV is designed in a small office in Californiaassembled in MexicoFrompanels made in South Koreaelectronic components made in Chinamicroprocessors made in the U.S.
Globalization of markets In the past, each country had its own companies in many industries and its own productsBut the most global markets are for standard goods
Aluminum WheatMicroprocessorsAircraft
For many consumer end-products, huge differences still exist among national markets
Food, clothing, entertainment
COMMODITY§ An Product Or Material That Is Brought And Sold .
§ Every Kind Of Movable Property, except Actionable Claims , Money And Securities.
Commodity market:Important constituent of the financial markets of any country A wide range of products viz., Precious metals ,base metals ,crude oil, energy And soft commodities like palm oil ,coffee etc.Are traded.
Evolution of commodity market in india :
Bombay cotton trade association ltd., Set up in 1875 was the first organised futures market. Bombay cotton exchange ltd.- 1983The futures trading oil seeds - 1900 Gujarati Vyapari Mandali
Different types of commodities traded:
§ Precious Metals : Gold, Silver, Platinum Etc§ Other Metals : Nickel, Aluminium, Copper Etc§ Agro Based Commodities : Wheat ,Corn , Cotton, Oils, Oilseeds§ Soft Commodities : Coffee, cocoa, Sugar, Etc§ Live-stock : Live Cattle , Pork Bellies Etc§ Energy : Crude Oil , Natural Gas , Gasoline Etc
Leading commodity market in india:
(MCX) Multi Commodity Exchange Located In Mumbai.
(NCDEX) National Commodity And Derivatives Exchange Ltd. Located In Mumbai.
(NBOT) National Board Of Trade Located In Indore.
(NMCE) National Multi Commodity Exchange Located At Ahmedabad.
Two factors underlie globalization:
‡ Decline in barriers to the free flow of goods, services, and capital that has occurred since the end of World War II.
‡Technological change
Drivers of Glozbalization
Average Tariff Rates on Manufactured Products
1913 1950 1990 2002France 21 % 18 % 5.9 % 4.0 %Germany 20 % 26 % 5.9 % 4.0 %Italy 18 % 25 % 5.9 % 4.0 %Japan 30 % -- 5.3 % 3.8 %Holland 5 % 1 % 5.9 % 4.0 %Sweden 20 % 9 % 4.4 % 4.0 %UK -- 4% 5.9 % 4.0 %US 44 % 14 % 4.8 % 4.0 %
Affects of Lowering Trade Barriers
Figure 1.1: Volume of World Trade and World Production, 1950-2004
100
600
1100
1600
2100
2600
3100
Inde
x 19
50=1
00
Total Merchandise Exports World Production
The Role of TechnologyLowering of trade barriers made globalization possible;technology has made it a transforming movement
Figure 1.3: Internet Users per 1000 People, 1990-2003
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
1990
1991
1992
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2003
Inte
rnet
Use
rs p
er 1
000
peop
le
Japan United States European Monetary Union World
Internet Usage Growth
The emergence of global institutions
World Trade Organization (WTO) International Monetary Fund (IMF)World Bank which promotes economic development , the United Nations (UN)
The Globalization DebatePro
Lower prices for goods and services
Economic growthIncrease in consumer
incomeCreates jobs (for many)Countries specialize in
production of goods and services that are produced most efficiently
ConDestroys
manufacturing jobs in wealthy nations
Wage rates of unskilled in advanced countries decline
Companies move to countries with fewer labor and environment regulations
Loss of sovereigntyHomogenized cultures
Managing in the Global Marketplace
Managing an international business is
different
Strategy of Globalization
World Bank Advisor Dr Intermit Gill stated: Cities are at the core of a development strategy based on international integration, investment and innovation.
In the Report (2006) East Asian Renaissance,
1) Unequal distribution of wealth disparity in income.
2) Rapid privatization government driven public sector units are on sale.
3) Uneven growth in respect of different sectors.4) Extreme mechanization is reducing demand for
manual labours.5) Both employee and consumer exploitation are
on rise by private sector.
THE IMPACT OF GLOBALIZATION IN INDIA
Impact of Globalization, In Particular On The Development Of
India, Social ServicesGrowth of Slum CapitalsGrowth of Unemployment
PovertyGrowth of management
educationDemoting Agriculture
Presented by:- Students of
Clara’s College Of EducationS.Y.BMS A
HUSSAIN CHUNAWALA - 07SHAHNAWAZ CHUNAWALA-08
CHERYL D’SOUZA - 09SHANON D’SOUZA - 10
FLORA CHETTIAR - 11
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