BUSINESS IN BUSINESS IN GLOBALIZATIONGLOBALIZATION

by

siddharthan

HISTORYHISTORY The world's economic order through The world's economic order through

reduction of such barriers to international reduction of such barriers to international tradetrade

most closely associated with the term “most closely associated with the term “economic globalization””

integration of national economies into the integration of national economies into the international economy through trade, international economy through trade, foreign direct investment, , capital flows, , migrationmigration

driven by a combination of economic, driven by a combination of economic, technological, sociocultural, political, and technological, sociocultural, political, and biological factors biological factors

DEFINITIONDEFINITION

United Nations ESCWA –”reduction and United Nations ESCWA –”reduction and removal of barriers between national removal of barriers between national borders in order to facilitate the flow of borders in order to facilitate the flow of goods, capital, services and labour”.goods, capital, services and labour”.

Tom G. Palmer-"the diminution or Tom G. Palmer-"the diminution or elimination of state-enforced restrictions elimination of state-enforced restrictions on exchanges across borders and the on exchanges across borders and the increasingly integrated and complex increasingly integrated and complex global system of production and exchange global system of production and exchange that has emerged as a result." that has emerged as a result."

MEASUREMENTMEASUREMENT3 main dimensions of globalization

•ECONOMIC

•SOCIAL

•POLITICAL

SWISS THINK TANK RESEARCH-

world's most globalized country-Austria, Sweden, the United Kingdom and the Netherlands.

world's least globalized country-Haiti, Myanmar, the central african public and Burundi

A.T. Kearney and Foreign Policy Magazine-Singapore, Ireland, Switzerland, the Netherlands, Canada and Denmark -most globalized, while Indonesia, India and Iran are the least globalized among countries listed

Global marketGlobal market

Financial interdependencyFinancial interdependency Basic necessary goodsBasic necessary goods GDP growth-india 7.7%GDP growth-india 7.7%

Globalization in IndiaGlobalization in India

FDI reached 2% of GDP, compared with FDI reached 2% of GDP, compared with 0.1% in 19900.1% in 1990

strengths in IT and other significant areas strengths in IT and other significant areas such as auto components, chemicals, such as auto components, chemicals, apparels, pharmaceuticals, and jewellryapparels, pharmaceuticals, and jewellry

large pool of skilled managerial and large pool of skilled managerial and technical expertisetechnical expertise

FDI inflow for 2011-2013 has been FDI inflow for 2011-2013 has been reported as $24bn, expected $35 billion reported as $24bn, expected $35 billion

EFFECTSEFFECTS

International trade in manufactured goods has increased more than 100 times (from $95 billion to $12 trillion) since 1955.

FINANCIALBy the early part of the 21st century, more than $1.5 trillion in national currencies traded daily to support the expanded levels of trade and investment

ECONOMICworkers compete in a global market. wages are less dependent on the success or failure of individual economies. This has had a major effect on wages and income distribution

INDUSTRIAL:INDUSTRIAL:

Siddharthan