Ppt 02 international strategy

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Ppt 02 international strategy

  1. 1. Globalization / International Strategy<br />Prof. S P Das<br />M. Phil (Economics), M.B.A. (Finance), M.A. (Economics), MCCP, PGDM, PGDFM, DBM, DHMCT, B.Com, UGC-SET (Economics)<br />
  2. 2. Globalization?<br />Globalization may be defined as “the process of integration of economies across the world through cross-border flow of factors, products and information.”<br />The IMF defines globalization as “the growing interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology.<br />Prof. S P Das<br />
  3. 3. Levels of Globalization<br />Micro Level – Globalization of Business and Firm<br />Macro Level – Globalization of the World Economy<br />Prof. S P Das<br />
  4. 4. Features of Globalization<br />Operates and Plans to expand all over the world<br />Removing differences between domestic and foreign markets<br />Buying and Selling across the globe<br />Manufacturing and Production any where as per the economy of scale<br />Product planning and development based on market consideration of entire world<br />Factors of production are sourced from around the globe<br />Creation of global culture among the minds of employees<br />Carries both promises and threats at the national, regional, organization and individual level.<br />Prof. S P Das<br />
  5. 5. Drivers of Globalization<br />Increasing International Trade<br />Production Sharing / Global Outsourcing<br />International Investments and Production<br />Cross Border Mergers & Acquisitions<br />Economic Integration though Trade Pacts<br />Rapid Increase in Communications and expansion of technology<br />Development of supporting services<br />Consumer Pressures<br />Increase in Global Competition<br />Prof. S P Das<br />
  6. 6. Approaches to Globalization<br />Ethnocentric Approach<br />Polycentric Approach<br />Region-centric Approach<br />Geocentric Approach<br />Prof. S P Das<br />
  7. 7. Globalization Process / Stages<br />Prof. S P Das<br />
  8. 8. Benefits of Globalization<br />Free Flow of Capital<br />Free Flow of Technology<br />Spreading out of Manufacturing Facilities<br />Balance Development of world Economy<br />Increase in Production and Consumption<br />Low Prices with High Quality<br />Cultural Exchange and Demand for Variety of Products<br />Increase in Employment and Income<br />High Standard of Living<br />Balance Human Development<br />Increase in welfare and prosperity<br />Prof. S P Das<br />
  9. 9. Ill Effects of Globalization<br />Global dominance of industries by MNC<br />May kill domestic Industries<br />Exploitation of Human Resources<br />Under employment / unemployment<br />Decline in Demand for domestic products<br />Increasing inequality between classes<br />Transfer of Natural Resources<br />Commercial and Political Colonialism<br />Threat to National Sovereignty / Security<br />Prof. S P Das<br />
  10. 10. Globalization Policy Suggestions of UNDP<br />Manage Trade and Capital Flows more carefully<br />Invest in Poor People<br />Foster Small Enterprises<br />Properly Manage New Technology<br />Reduce Poverty and introduce safety nets<br />Influence Governance<br />Prof. S P Das<br />
  11. 11. Strengths of India<br />Skilled & Cheaper Human Resources<br />Wide Base / Market<br />Growing Entrepreneurship<br />Growing Domestic Market<br />Niche Markets<br />Economic Liberalization<br />Competition<br />Prof. S P Das<br />
  12. 12. Challenges for India<br />Bureaucratic policy and procedures<br />High cost of many vital inputs<br />Poor / Inadequate infrastructure<br />Technological Obsolescence<br />Resistance to change<br />Poor Quality image<br />Limited R & D<br />Lack of experience in managing International Business<br />Prof. S P Das<br />
  13. 13. Entry Strategies<br />Prof. S P Das<br />
  14. 14. Assignment<br />Select any company of your choice having international business activities. Evaluate the International Business Expansion / Entry Strategy adopted by the selected company. <br />Prof. S P Das<br />
  15. 15. Thank you<br />Prof. S P Das<br />

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