GLOBALISATION

 PRIYANKA KABRA 33
 PANKHURI KHATRI 36
 SNEHA LOTLIKAR 43
 SHAMBHAVI MISHRA 53
 RITIKA NIGAM 56

DEFINITION
 “ the growing economic
interdependence of
 countries world wide through
increasing volume and variety of cross
border transaction in goods and
services and of international capital
flows,
 And also through the more rapid and
widespread diffusion of technology ”
GLOBALISATION OF
WORLD ECONOMY…..
GLOBALISATION OF
BUSINESS…..
GLOBALISATION OF INDIAN
ECONOMY
OBSTACLES


 GOVERNMENT POLICIES AND

 PROCEDURES
 HIGH COST
 POOR INFRASTRUCTURE
 LIMITED R&D AND MARKET RESEARCH

GLOBALISATION OF INDIAN
ECONOMY
FACTORS FAVOURING


 HUMAN RESOURCE
 WIDE BASE

 GROWING ENTREPRENEURSHIP

 NICHE MARKET

 ECONOMIC LIBERALIZATION
 STAGES OF  
GLOBALISATION
COMPARISON BETWEEN THE OLD AND
NEW

 OLD  NEW

ü TRADE FLOWS ü NEW MARKET

ü FDI FLOWS ü NEW ACTORS
ü FINANCIAL FLOWS ü NEW RULES AND
ü LABOUR FLOWS NORMS
ü NEW TOOLS OF
COMMUNICATION
Essential Condition for
Globalization
Business freedom : There should not be
unnecessary restriction. Hence
globalization is the first step.

Facilities : The extent of globalization

depends on the facilities available.

Government support : Unnecessary

interference may cause hindrance in
globalization, but government support
can encourage globalization
Resources : It is one of the most important factor


often decides the ability of a firm to globalize. It

includes finance, technology, Managerial expertise
etc.


Competitiveness : This factor provide a small



company its, ability to compete with a large firm



Orientation : A global orientation on the part of the



business firm and suitable globalization are

essential for globalization
FOREIGN MARKET ENTRY STATEGIES
 It is he most strategic decisions in the
international business is the mode of entry.
There are several alternatives possible and
depending on the relevance of the factor to
the company and the foreign market an
alternative is selected
 Also the alternatives get
restricted at times due to the different policies
that the local government has existing in the
market. These policies may or may not be
positive and hence can be a limiting or
encouraging factor. E.g. in some case the
government gives preference to joint venture
rather then complete owner ship. etc
Foreign market entry strategy
 EXPORTING


 LICENSING / FRANCHISING


 CONTRACT MANUFACTURING
Foreign market entry strategy

 MANAGEMENT CONTRACT


 JOINT VENTURING




Foreign market entry strategy

 MERGERS AND ACQUISITIONS



 STRATEGIC ALLIANCE

IMPLICATIONS AND IMPACT OF TRADE
POLICY
AGAINST
 The trade policies have not adequately
addressed the concerns of the environment
 The developing countries have been
disadvantaged by the international trading
system

REASONS
-”Demand-supply factor”

-”Economically powerful nations dominate the

weaker”

Favor

- Developing countries benefit



from trade
IMPACT OF GLOBALISATION ON INDIAN
INDUSTRY

ECONOMIC REFORMS

HIGH TARIFFS AND TAXES

INCREASED INDUSTRIAL
UNEMPLOYMENT

OLD AND NEW ECONOMIC

SYNDROME

NEGLIGIBLE GLOBAL EXPORT

 LOW INDUSTRIAL GROWTH
1980-1992
2
AGRICULTURA 3.9 3.3
L AND ALLIED
INDUSTRY
6.3 6.5
INDUSTRY
6.1 7.4
MANUFACTURI
6.4 8.2
NG
SERVICES
5.5 8.3
HOTELS,TRANS
PORT,COMMUN
ICATION
9.4 8.8
FINANCIAL,RE
AL ESTATE 5.4 6.4
AREAS FOR CONCERN FOR INDIAN ECONOMY

 TECHNOLOGY GAPS
 INFRASTUCTURE BOTTLE NECKS

 REFORMS SUCH AS PRIVATISATION, EXIT

POLICY ARE DIFFICULT TO IMPLEMENT
 NON COMPETITIVE PRODUCTS

 SHARE OF GLOBAL EXPORT IS 0.9%

 HENCE NO BARGAINING STRENGTH IN WTO

ORGANISATIONS
THREATS TO 
GLOBALISATION ­ 
 
LIBERALISATION 
POLICIES
 
PRIVATISATION 
PROGRAMMES
Thank you