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GROUP 5
 Rukshana Maharjan
 Ravina Shrestha
 Saru Shrestha
 Nasrina Shrestha
 Sajan Gamal
 Saroj Khanal
Concept And Categorization
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.
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
Categories of Globalization
Globalization is composed of four main
categories.
 World Trade
 Portfolio Investment
 Direct Foreign Investment
 Multinational Companies
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
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
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
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
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

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Globalization concept and categories nbe chapter 6

  • 1. GROUP 5  Rukshana Maharjan  Ravina Shrestha  Saru Shrestha  Nasrina Shrestha  Sajan Gamal  Saroj Khanal
  • 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. 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. Categories of Globalization Globalization is composed of four main categories.  World Trade  Portfolio Investment  Direct Foreign Investment  Multinational Companies
  • 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. 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. 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. 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. 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