Globalization

Primary keyword— GLOBALIZATION Secondary keywords—globalization , international organization , benefits of globalization

Page title-Globalization

Sub title-- Globalization

GLOBALIZATION

What is Globalization? In simple Globalization means opening up of national boundaries for foreigner to start their business. For developing countries, globalization means integration with the world economy. Globalization is cross border economic transaction.

Globalization encompasses the following: Doing or planning to expand, business globally. Global orientation of organizational structure and management culture

Globalization involves following: Free flow of technology, expertise and intelligence Free flow of capital among different countries Free flow of Human resource among different countries Increase in Foreign direct investment Increase in international financial investments and transactions

Why go International? The factors which motivate or provoke firms to go international may be broadly divided into two groups:- Pull factor Push factor

Most of push factors are reactive reasons Profit advantage: An important incentive for international business is the profit advantage. Growth Opportunities: The enormous growth potential of many foreign markets is a very strong attraction for foreign companies. Domestic Market Constraints: Domestic demand constraints Drive many companies to expanding the market beyond the national border. Competition Government Policies and Regulations Spin-off benefits Strategic vision: Company wants to gain the strategic advantages of internationalization.

Factors hindering Globalization are: Government policies and procedures because some nations are still not ready to open their borders for foreign companies Those which are resistant to change their already adopted practices and incorporate new one Lack of Experience Trade barriers Increasing complexity and competitiveness for home companies

Factors facilitating Globalization are: Low cost of labor Large and growing local markets Increasing Entrepreneurship nature Competition Adaptability to newest technology

Essential conditions for Globalization: Business freedom Facilities Government support Resources Competitiveness Orientation: A global Orientation on the part of the business firms and suitable globalization strategies are essential for globalization

Effects of Globalization: The foreign currency reserves of government increases Exports have increased and become competitive Brings in latest technologies Introduction of latest technologies changes the lifestyle. Exchange of Information increases knowledge Growth in economy