7. Globalization
• Globalization is the increasing interaction of people, states, or
countries through the growth of the international flow of money,
ideas, and culture. Thus, globalization is primarily focused on the
economic process of integration that has social and cultural
aspects.
• It is the interconnectedness of people and business across the
world that eventually lead to global, cultural, political, and
economic integration.
• It is the ability to move and communicate easily with others all
over the world in order to conduct business internationally.
8. Globalization
• It is the free movement of goods, services, and people across the
world in a seamless and integrated manner.
• It is the liberalization of countries of their impact protocols and
welcome foreign investment into sectors that are the mainstray of
its economy.
• It refers to countries acting like magnets attracting global capital
by opening up their economics to multinational corporation.
9. Globalization
• It is the free movement of goods, services, and people across the
world in a seamless and integrated manner.
• It is the liberalization of countries of their impact protocols and
welcome foreign investment into sectors that are the mainstray of
its economy.
• It refers to countries acting like magnets attracting global capital
by opening up their economics to multinational corporation.
10. Globalization as defined by other authors
• “globalization as a process by which the people of the world are
incorporated into a single world society” _Martin Albrow and Elizabeth King
• “globalization as the intensification of worldwide social relations
which link distant localities in such a way that local happenings are
shaped by events occurring may miles away and vice versa.”
_Anthony Giddens.
• “globalization as the compression of the world and the
intensification of the consciousness of the world as a whole.” _Roland
Robertson
11. Characteristics of Globalization
• There is social mobility of
movement of
people regardless of the reason.
• There is an intensification of
interactions
• It’s an active process
• Borderless interaction
• Spread of ideas, knowledge,
technology, culture, religion, etc.
13. • 1897, Charles Taza Russel – coined the term Corporate Giants,
referring to a large national trust and other large enterprises of the
time.
• In 1930, the word “Globalize” as a noun appeared in a publication
entitled “Towards new education” where it denoted a holistic view
of human experience in education.
• Late 1970’s - Globalization was coined
• Early 1981 – globalization was used in an economic sense
• Late 1980’s – globalization was popularized by Theodore Levitt
• Late 2000’s the IMF identified four basic aspect of globalization.
• In 2013, globalization was used to define “borderless society”
• In 2017, globalization was often used in Academe
• In 2018, globalization was now used in all disciplines
14. Indicators of Globalization
• Interdependence of countries in
different social aspects
• Advancement of science,
technology etc.
• Environmental issues across
borders
• Economic globalization,
cultural globalization, and
political globalization.
15. Nature of Globalization
• A conglomerate of various multiple
units located in different parts of the
globe which are linked by common
ownership.
• Multiple units draw a common pool of
resources such as money, credit,
information, patents, trade names and
control system.
16. Nature of Globalization
• The units respond to some common
strategy. Product presence is in
different markets of the world. Human
resources are highly diverse.
Transactions involving intellectual
property such as copyrights, patents,
trademarks, and process technologies
are across the globe.
17. Reasons for Globalization
• Rapid shrinking of time and distance across the globe. One can
easily cross the bridge going to the other side of the marketplace due
to advanced tools of technology than before.
• Domestic markets are no longer rich as a consequence of many
interlocking factors.
• Companies and institutions go global to find politics and economic
stability which is relatively good in other countries than the country
of origin.
18. Reasons for Globalization
• To get technological and managerial know-how of other countries
due to their advancement in science, technology, education, health,
and other fields of discipline.
• To reduce high transportation costs if one goes globally using
advanced tools of communication and information.
• To be close to raw materials and to market for their finished
products which are not available in the country of origin.
• The creation of the World Trade Organization (WTO) made it
possible in stimulating increased cross-border trade. There are other
world bodies like the UN and several arbitration bodies where
countries agree.
19. Stages of Globalization
• Stage 1. The first stage is the arm’s length service activity of an
essentially domestic company/institution which move into a new
market overseas by linking up with local dealers and distributors.
• Stage 2. in this stage, the company/institution takes over these
activities on its own.
• Stage 3. in this stage, the domestic-based company institution begins
to carry out its own manufacturing marketing and sales in key
foreign markets.
20. Stages of Globalization
• Stage 4: in this stage, the company/institution moves to a full insider
position in these markets supported by a complete business system
including Research and Development and engineering. However,
the headquarters mentality continues to dominate.
• Stage 5” in this stage, the company/institution moves towards a
genuinely global mode of operation. In this stage, global localization
happens, that is, the company institution serves local customers in
markets around the globe responding to their needs. This requires an
organizational transition i.e; the company must denationalize its
operations and create a system of values shared by global managers.
