SUBMITTED TO:- SUBMITTED BY:- MRS NIRUPINDER KAUR SNEH LATA SINHA (13339)

GLOBALISATION

The term Globalization refers to processes of international integration arising from the interchange of view point, products, ideas, and other aspects of culture. Advances in transportation and telecommunication, infrastructure, including the rise of the telegraph and its posterity the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities.

CAUSES OF GLOBALISATION More financial benefits To reduce the cost of

production Shrinking of time and distance Growth potential of foreign

markets Demand constraints in the

domestic markets

Nationality of the companies Effects of liberalization Spin off benefits of globalization High tech industries

STRATEGIES FOR GLOBALISATION

1. Exports2. Licensing and franchising 3. Contract manufacturing4. Management contracting5. Fully owned manufacturing

facilities6. Assembly operations7. Joint ventures8. Mergers and acquisition9. Strategic alliance10.Counter trade

Level Of Globalization

World Level Globalization There would be no globalization of the world if

all the countries live in autarky. Globalization process begins with inter economic, social and political relations between countries.

Country Level Globalization Globalization of a country is indicated by the

extent to which it is integrated with rest of the world. There are various inter-linkages through which a large number of cross border transactions are generated.

Industry Level Globalization Within a country, a few specific industries

might be operating at the global level. Such industries have a high degree of technological advancement .

Firm Level Globalization These firms have high level of technological

development, strong competitive advantages, international outsourcing connections. These firms find entry to foreign markets through exporting, joint ventures.

Industry Level Globalization Within a country, a few specific industries might be operating at the global level. Such industries have a high degree of technological advancement .

Firm Level Globalization These firms have high level of technological development, strong competitive advantages, international outsourcing connections. These firms find entry to foreign markets through exporting, joint ventures.

Recent Measures To Promote Globalization

External Commercial Borrowings ECB’s are an important and

emerging facilitating globalization of the corporate organizations as well as the economy as a whole. The main guiding principles of the policy towards ECB.

a) To obtain the borrowings at lowest possible rates with least transaction cost.

b) To keep long maturity periods so that the burden is spread over a number of years.

Rupee Convertibility

There has been gradual movement towards rupee convertibility. Rupee convertibility means to the convertibility of rupee in a foreign currency for certain permitted categories of external transactions. Rupee was made partially convertible on trade account with effect from the year 1993-94.

Trade measures

In order to increase the export- GDP ratio. These include a reduction in export credit rates, both pre-shipment and post-shipment, higher duty drawback rates on a large number of export items, abolition of value items.

Gains From Globalization

CompetitiveLarger MarketsGreater SpecializationInternational Investment InflowTechnological Gains