Globalization Evolution

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GLOBALIZATION
EVOLUTION OF GLOBALIZATION
The term globalization denotes “globe” as a single market.
Product presence in different Markets of the world.
Production base across the globe.
Human resources from all over the world.
International investment
Transaction involving IPRs.
The advent in ICI(information, communication and technology)
Rapid economic liberalization of trade and investment
The mobility of people and transactional moves
The reach of satellite channels, internet etc.

CONCEPT OF GLOBALIZATION
IMF defines globalization as “ The growing economical interdependence of countries worldwide through increase in volume and variety of cross border transactions in goods and services and of international capital flows
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To increase the profit
The failure of domestic companies
Adverse business environment
Globalization of production:
Reasons
Cheap raw materials, cheap labour and high quality
Imposition of restriction on imports
Reduce the cost of transportation

Globalization of technology:
Revolution in telecommunication, information technology and transportation technology
ADVANTAGES / DISADVANTAGES OF GLOBALIZATION
ADVANTAGES
Free flow of capital, tecnology etc
Increase in industrialization
Spread of production facilities
Balance development of world economics
Increase in production and consumption
Commodities with lower price and high quality
Cultural exchange
Demand for variety of products
Increase in job and income
High living standards
Balance human development
Economic liberalization
DISADVANTAGES
It kills domestic business
Exploit human resources
Leads to unemployment and under employment
Decline in income
Transfer of natural resources
National sovereignty at country stake.
Leads commercial and political colonization
The divide between the rich and the poor
The developing and under-developing countries
Unemployment and mass layoff
Adverse balance of payment
Volatile of markets
Loss of cultural identity
Shift of power to multinationals
Effects of globalization
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