concept of globalization features of globalization advantages of globalization disadvantages of globalization stages of globalization impact of globalization on international business factors led to globalization constraints of globalization these are the notes on globalization suitable for management students business students, commerce students all the notes at given in nutshell topics covered are said as above hope you find these helpful and useful

1. Globalization
Concept of Globalization
Globalization means the integration of economy of the country into a world
economy to ensure free flow of goods, services, capital, knowledge & technology.
Globalization involves increasing interdependence & integration of countries
through cross border transaction of goods, services & international capital and also
through more rapid & widespread diffusion of technology. It is shift towards more
integrated & interdependent world economy.
Features of Globalization
 Reduction of trade barriers so as to ensure free flow of goods and services
across national boundaries
 Viewing the entire world as a single market and a single unit.
 Sources of factors of production from any part of the globe
 Creation of environment for free flow of goods and services & technology
Advantages of globalization
 Cost reduction
 Global learning
 Rapid industrialization
 Arbitrage advantage
 Better allocation of resources
 Reduction of poverty
 Employment generation
 Balanced development
 Better quality of life
 Human development

2. Disadvantages of globalization
 Threat to domestic industry
 Unemployment
 Exploitation of labor
 Overuse of natural resources
 Widening the gap between rich and poor
Stages of globalization
 Domestic firm exports goods and services to foreign countries through
dealers and middlemen
 Domestic firm exports to foreign countries directly
 Domestic firm set up production and marketing facilities in foreign countries
 Domestic firm establishes a subsidiary in foreign countries
 Domestic firm becomes a true global firm by serving the needs of customers
worldwide.
Impact of globalization on International business
 Globalization of market
 Globalization of production
 Globalization of investment
 Globalization of technology
Factors that led to globalization
 Political factors
 Technological factors
 Social factors
 Competitive factors

3. Constraints of globalization
 National difference in business system
 National difference in consumer behavior
 National difference in social culture
 Protection of domestic industries.