BY Aditi Patel

Business -520

Professor- Tom Javarinis

GlobalizationGlobalization refers to the process

of integration of the world into one huge market.

Expansion of any business world wild

Giving birth to new economy

World has become a small village due to the concept of globalization

History of Globalization Begins in 14th century when

Christopher Columbus &

Vasco da Gama stumbles on

the Americas in search of spices.

Dutch East India Company becoming the world’s first multinational privately-held company.

It initiates with though that trade with the third

world would keep American inflation low.

Globalization in developed countryGrowth of multinational firms.

New technology can easily adapted.

Can sell more products and goods to new markets in

the Global South or poorer countries.

Improving quality of life

Impact on third worldDirect attack on local tiny and small scale industry.

Increases cut throat competition.

The rich are getting richer and the poor are becoming

poorer.

cultural convergence-more people are moving towards

the western fashion.

Two componentsGlobalization of market

Standardization & adaptation.

An increase in total production.

Different strategies for different market.

Coca-Cola industry have their market world wild.

Globalization of product

World has become the global

village.

consumer goods and services are now universally available.

Adapted by local culture and environment.

Common brand name with uniform features in all countries.

Example of mc Donald's, Coca-Cola, Ford, ,Toyota

Advantages Wider opportunities for investment.

Companies get access to much wider markets.

Consumers to get much wider variety of products to choose from.

Lower Marketing Costs.

Brand image Consistency: Global marketing allows you to have a

consistent image in every region that you choose to market.

More opportunities for cultural diversity.

Increased free trade between nations.

DisadvantagesEconomic crisis.

Increase in Unemployment.

Harmful Effects on Small Industries and Small Business.

The Laws of the Land Have to be Considered: Original company policies may be according to the laws of home countries. The overseas laws may be conflicting in these policies.

Increased flow of skilled and non-skilled jobs from developed to developing nations

Future of Globalization

origin of Universal currency.

Easy adaptation of new technology world wild.

prosperity will flourish, but not for all.

world-ruling super government.

Greater levels of immigration, changing the ethnic, cultural and religious composition of several countries and leading to the establishment of multicultural societies.

the world will become truly “one”—one with God.

References O’Rourke, K. H. ( 2000, April ). WHEN DID GLOBALIZATION BEGIN?

Retrieved from http://www.nber.org/papers/w7632.pdf?new_window=1

WORLDWILL BECAMESINGLECOUNTRY