globalization & business environment
TRANSCRIPT
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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