“Processes by which goods, services, capital, people, information, and ideas flow across national borders.” The process of integration of economic, financial, cultural and political systems across the world.

1. Chapter 1: Globalization andChapter 1: Globalization and
International BusinessInternational Business
globalizationglobalization

2. Chapter 1: Globalization andChapter 1: Globalization and
International BusinessInternational Business
Globalization :Globalization :
 ““Processes by which goods, services,Processes by which goods, services,
capital, people, information, and ideas flowcapital, people, information, and ideas flow
across national borders.”across national borders.” (Levy)(Levy)

3. Chapter 1: Globalization andChapter 1: Globalization and
International BusinessInternational Business
Globalization of Business:
A Historical Perspective
In the initial years of human history,
there were hardly any formal barriers, such as
tariffs or non-tariff restrictions, for the
movement of goods .

4. Chapter 1: Globalization andChapter 1: Globalization and
International BusinessInternational Business
Concept of GlobalizationConcept of Globalization
The process of integration ofThe process of integration of
economic, financial, cultural and politicaleconomic, financial, cultural and political
systems across the world.systems across the world.

5. Chapter 1: Globalization andChapter 1: Globalization and
International BusinessInternational Business
Impact :Impact :
 Economic impactEconomic impact
• Improvement in standard of livingImprovement in standard of living
• Increased competition among nationsIncreased competition among nations
 Social impactSocial impact
• Increased awareness of foreign culturesIncreased awareness of foreign cultures
• Loss of local cultureLoss of local culture

6. Chapter 1: Globalization andChapter 1: Globalization and
International BusinessInternational Business

7. Chapter 1: Globalization andChapter 1: Globalization and
International BusinessInternational Business
Advantages :Advantages :
 Peaceful RelationsPeaceful Relations
Most of the countries have resorted to tradeMost of the countries have resorted to trade
relations with each other in order to boost theirrelations with each other in order to boost their
economy, leaving behind any bitter past experienceseconomy, leaving behind any bitter past experiences
if any.if any.
 EmploymentEmployment
Considered as one of the most crucialConsidered as one of the most crucial
advantages, globalization has led to the generation ofadvantages, globalization has led to the generation of
numerous employment opportunities.numerous employment opportunities.

8. Chapter 1: Globalization andChapter 1: Globalization and
International BusinessInternational Business
 EducationEducation
A very critical advantage that has aided theA very critical advantage that has aided the
population is the spread of education. With numerouspopulation is the spread of education. With numerous
educational institutions around the globe, one caneducational institutions around the globe, one can
move out from the home country for bettermove out from the home country for better
opportunities elsewhere.opportunities elsewhere.

Product QualityProduct Quality
The product quality has been enhanced so asThe product quality has been enhanced so as
to retain the customers. Today the customers mayto retain the customers. Today the customers may
compromise with the price range but not with thecompromise with the price range but not with the
quality of the product. Low or poor quality canquality of the product. Low or poor quality can
adversely affect consumer satisfaction.adversely affect consumer satisfaction.

9. Chapter 1: Globalization andChapter 1: Globalization and
International BusinessInternational Business
 Cheaper PricesCheaper Prices
Globalization has brought in fierce competitionGlobalization has brought in fierce competition
in the markets.in the markets.
 CommunicationCommunication
Every single information is easily accessible fromEvery single information is easily accessible from
almost every corner of the worldalmost every corner of the world
 GDP IncreaseGDP Increase
Gross Domestic Product, commonly known asGross Domestic Product, commonly known as
GDP, is the money value of the final goods andGDP, is the money value of the final goods and
services produced within the domestic territory of theservices produced within the domestic territory of the
country during an accounting year.country during an accounting year.

10. Chapter 1: Globalization andChapter 1: Globalization and
International BusinessInternational Business
DisadvantagesDisadvantages
 Health IssuesHealth Issues
Globalization has given rise to more healthGlobalization has given rise to more health
risks and presents new threats and challengesrisks and presents new threats and challenges
for epidemicfor epidemic
Loss of CultureLoss of Culture
With large number of people moving intoWith large number of people moving into
and out of a country . People may adapt to the cultureand out of a country . People may adapt to the culture
of the resident country.of the resident country.

11. Chapter 1: Globalization andChapter 1: Globalization and
International BusinessInternational Business
 Uneven Wealth DistributionUneven Wealth Distribution
It is said that the rich are gettingIt is said that the rich are getting
richer while the poor are getting poorer. In thericher while the poor are getting poorer. In the
real sense, globalization has not been able toreal sense, globalization has not been able to
reduce poverty.reduce poverty.

12. Chapter 1: Globalization andChapter 1: Globalization and
International BusinessInternational Business
Thank youThank you