8. Interdependence of people from different countries.
Integration of countries by removing the trade barrier.
Free flow of trade, capital, technology & people.
Globalization means:
9. The Forces Driving Globalization
Economical
Technological
Personal Contact
Political
10. Factors In Increased Globalization
Increased in free tade.
Increased in technology.
Growing consumer pressure.
Increased capital mobility.
Changing political condition.
Expended cross national co-operation.
12. Treats to national soverignty
-Question of local objectives and rules.
-Question of local over dependence.
-Question of cultural homogenity
Economic growth and environmental stress
Growing income inequality.
14. Merchandise Exports :
- Goods that are sent out of a country
Merchandise Imports :
-Goods that are brought into a country
[Sometimes referred to as visible exports and
imports]
15. Service Exports :
-Provider and receiver of payment
Turnkey operation and management contracts
-Asset Use
Licensing and franchising
Service Imports :
-Recipient and payer of payment
Examples
-Tourism and transportation
- Service performance
16. Investments:
Foreign direct investment(FDI)
-Investor takes a controlling interest in a foreign
company.
Joint Venture
Portfolio investment
-A non-controlling financial interest in another
entity
17.
18. Physical and social factors :
-Geographical influence.
- Political factors.
- Legal factors.
- Behavior factors.
- Economic factors.
19. The competitive environment :
-Competitive strategy for products.
- Company resources and experience.
- Competition faces in each market.
20. In order to enjoy the full benefits of globalization, organization must
have the right global business design, global operation strategy, global
focus, customization, organizational structure, customer connection
activities, innovation, proprietary information and risk management
system in place. Though there are viewpoints on optimizing its benefits,
the article failed to explore issues in relation to human rights,
environmental matters, political instability and inequalities. These are
common global concerns which have to be respected and since
international business transactions have connection to these concerns, it
is crucial for laws of international business transactions have to be in a
position to promote guidelines to regulate global concerns which will in
turn benefit businesses.