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Globalization concept and categories nbe chapter 6


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Based on syllabus of Pokhara University, Nepal for the Nepalese Business Environment subject

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Globalization concept and categories nbe chapter 6

  1. 1. GROUP 5  Rukshana Maharjan  Ravina Shrestha  Saru Shrestha  Nasrina Shrestha  Sajan Gamal  Saroj Khanal
  2. 2. Concept And Categorization
  3. 3. Globalization  Globalization is a free movement of goods, service, people, capital and information across national boundaries.  It is a process of integration of the world as one market.
  4. 4. Globalization Concept  To business executive: - crossing national boundaries through globalized production & marketing network.  To an economist: - economic interdependence among countries covering increased trade, technology, labor and capital flows. -changing nature of production process & internationalization of financial institution  To a political scientist: - integration of global community, - creation of world government or cartels government
  5. 5. Categories of Globalization Globalization is composed of four main categories.  World Trade  Portfolio Investment  Direct Foreign Investment  Multinational Companies
  6. 6. World Trade  World trade is theTrading of merchandise between two or more than two countries.  Process: Export Import Produc t Consumer in one country. Producer in another country Influencing factor oTransportation Facility o Global network of Banking & insurance o Information flow o National & international agreements
  7. 7. Portfolio Investment  It is the purchase of foreign securities in the form of stocks, bonds, commercial papers to obtain return on that investment in the form of dividends, interests or capital gain.  It does not grant managerial control of foreign enterprise to the buyer.  Influencing factor  Interest rates  Currency value
  8. 8. Direct Foreign Investment  FDI) is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country  It is the long term capital investment.  The investor can exercise managerial roles
  9. 9. Multinational Companies  Multinational enterprise (MNE) are organizations that own or control production or services facilities in one or more countries other than the home country.  It has all components of globalization.  Its objectives are - more market coverage - branding product - avoid saturation point in domestic market
  10. 10. Conclusion Globalization is the free movement of goods and services, capital, information, from countries to countries. It exchange ideas of various fields like economics, politics, cultural, technological etc. Use of technology has enhanced the process of globalization rapidly. THANK YOU