Professional Documents
Culture Documents
Global Business
TOPICS WE NEED TO
COVER :
1. Meaning of International Business
2.
3.
4.
5.
6.
Meaning of Globalization
Drivers of Globalization
Overview of changing global pictures
Declining trade Barriers
Change in Communication, information, transportation
technologies
WHAT IS INTERNATIONAL
BUSINESS?
In a very simple way, we can define IB as businesses that are performed across the
border.
International Business is the performance
of business activities abroad by a citizen
or a domestic enterprise in the form of
trade or investment.
So a business can be said international
when its operations go beyond the
national boundaries. A business is
said to have internationalize, once it
started to send its goods and services
apart from home country.
Video : What is international Business?
WHAT DOES
GLOBALIZATION MEAN?
Video : Globalization Animation
The term globalization derives from the root word "globalize", which refers to the emergence of an international
network of social and economic systems.
There are various definitions profound by many prominent scholars about globalization. It can merely be defined
as a whole process of being internationalization,modernization,deteritorization in cultural,political,social,econmic
aspect.
Globalization dreams world as a single economy. Globalization views world as a single village. Today, if anything
does happen bad in political scenario of any country another country frequently changes business policies.
Presently if some cultural revolution happens somewhere then it impacts all of the neighbourhood.
If recession cripples any one country that influences others.
Globalization has existed because no nation could
sufficient to his own. They need to go with the world.
So world become open to each other.
Gradually United Nations got set up.WTO,World bank
,Asian Development Bank,IMF got existed.
Eventually countries started to build trade blocks as
NAFTA,AU,EU,SAFTA,BIMSTEC,ASEAN etc.
After then the significance and importance of Globalization
become inevitable.
Globalization can be defined from various corners. Globalization has forms such as economic
globalization,political globalization,socio cultural globalization,natural globalization and
technological globalization.
Economic globalization sees whole world is tied with single economy.American doller has become
common value of exchange.Countries are free to get investment.Companies get enter countries to
countries through various entry methods such as licensing,franchising,direct investment,joint
ventures,mergers and acquisitions.
Political globalization is that politics of one nation does impact to other nation.The political
movement in Tunisia has brought the changeness all throughout arab nations. Almost every nation
have signed to UN doctrines. In many issues countries are cooperating and forcing each other to
regulise. womens rights,child rights,labour rights and many subjects are widely accepted.
Culture has stretched its arms around the globe. Today, New year celebration according to Georgian
calendar and Valentine day is celebrated in the whole of the world.
Natural Globalisation refers all countries of the globe are stand to natural issues. Global
warming,green markeitng, O-zone layer depletion, cross border pollution all issues are globally
discussed and common strategies are being taken to fight against.
Technological globalization is about sharing of common technologies. Internet is common to
everybody. Like wise PSTN telephone,CDMA and GSM is same to all people. Microsoft is sharing
common software WINDOWS to 95 percent of the computer of the globe.
In short Globalization is internationalization,mordernization and deteritorization in
economic,political,cultural and technoligical things. Globalization sees world as borderless and
Global villa.
DRIVERS OF
GLOBALIZATION
Globalization is not spontaneous outcome. It has not easily come to
todays shape. Many ups and downs been suffered over the decades.
There are some reasons that compelled globalization to spread two
times a day and four times a night. These reasons are striving factors
in other words we say drivers.
These drivers are as follows:
1. Problems in Capitalism
2. Tech-boom
3. Comparative Cost advantage
4. Media explosion
5. Competition
6. High deamand / Increasing Market
7. Alliance trading blocs
1. Crisis in Capitalism
Capitalism led two problems to the businessmen. One
is that it led over production of goods and services.
Companies need to waste their products so they took a
nod to go abroad. Another problem was that they had
earned robust money. They had a problem, where to
put money. So they had began to search new countries
to invest and sell goods.
2.Tech- Boom
Globalization been strongly recommended
because of bombarding advancement in
the technology. Over the decades
computerization greatly helped to conduct businesses.
Robust development of communication technology also
realized. Speedy and efficient transportation system
also been developed. These all phenomenon strongly
pushed business to go abroad or say to international.
5. Competition
As the means of production such as
technologies,markets,communication tools,
transportation mode are developed, the other thing
came along. Other people also imitated the trend and
they posed threats to each other. Companies started
having competition at their home ground. In such tempo
of circumstances they started to discover newer
markets. Some companies fashion of producing goods
become old for their parent nation so they begin to look
for the market that would to match able. In this way
Globalization been felt even necessarily.
6. High Demand and increasing new market
After the second world war, world has entered another
level of development. That is economic development.
Thus many new countries came up with changed lifestyle with strong economy. Companies started having
leap frogged demand of goods. Many countries had
opened their doors for MNCs. This is how Globalization
OVERVIEW
OF
CHANGING
GLOBAL
PICTURE
Merci !!!