Globalization refers to the increasing integration and interdependence of national economies through cross-border movement of goods, services, technology and capital. It has accelerated since the 18th century due to advances in transportation and communication technology. This has led to growth in international trade and exchange of ideas and culture. Globalization involves economic, social and political interactions on a global level and has both benefits like access to more goods and markets as well as challenges like job losses and cultural impacts.

2. GLOBALIZATION
• GLOBALIZATION, OR GLOBALISATION, IS
THE PROCESS OF INTERACTION AND
INTEGRATION AMONG PEOPLE, COMPANIES,
AND GOVERNMENTS WORLDWIDE.
• GLOBALIZATION HAS ACCELERATED SINCE
THE 18TH CENTURY DUETOADVANCES IN
TRANSPORTATION AND COMMUNICATION
TECHNOLOGY.
• THIS INCREASE IN GLOBAL INTERACTIONS
HAS CAUSED A GROWTH IN
INTERNATIONALTRADE ANDTHE EXCHANGE
OF IDEAS AND CULTURE.
• GLOBALIZATION IS PRIMARILY AN
ECONOMIC PROCESS OF INTERACTION
AND INTEGRATIONTHAT ISASSOCIATED
WITH SOCIAL AND CULTURAL ASPECTS.

3. • ECONOMICALLY, GLOBALIZATION
INVOLVES GOODS, SERVICES, DATA, TECHNOLOGY, AND THE ECONOMIC
RESOURCES OF CAPITAL. THE EXPANSION OF GLOBAL MARKETS LIBERALIZES
THE ECONOMIC ACTIVITIES OF THE EXCHANGE OF GOODS AND FUNDS. REMOVAL
OF CROSS-BORDER TRADE BARRIERS HAS MADE THE FORMATION OF GLOBAL
MARKETS MORE FEASIBLE.
• ADVANCES IN TRANSPORTATION, LIKE THE STEAM LOCOMOTIVE, STEAMSHIP, JET
ENGINE, AND CONTAINER SHIPS, AND DEVELOPMENTS
IN TELECOMMUNICATION INFRASTRUCTURE, LIKE THE TELEGRAPH, INTERNET,
AND MOBILE PHONES, HAVE BEEN MAJOR FACTORS IN GLOBALIZATION AND HAVE
GENERATED FURTHER INTERDEPENDENCE OF ECONOMIC AND CULTURAL
ACTIVITIES AROUND THE GLOBE.
IN 2000, THE INTERNATIONAL MONETARY FUND (IMF) IDENTIFIED FOUR BASIC ASPECTS OF
GLOBALIZATION: TRADE AND TRANSACTIONS, CAPITAL AND INVESTMENT MOVEMENTS, MI
GRATION AND MOVEMENT OF PEOPLE, AND THE DISSEMINATION OF
KNOWLEDGE. ENVIRONMENTAL CHALLENGES SUCH AS GLOBAL WARMING, CROSS-
BOUNDARY WATER AND AIR POLLUTION, AND OVER-FISHING HAVE BEEN LINKED TO
GLOBALIZATION.
GLOBALIZING PROCESSES AFFECT AND ARE AFFECTED
BY BUSINESS AND WORK ORGANIZATION, ECONOMICS, SOCIOCULTURAL RESOURCES,
AND THE NATURAL ENVIRONMENT. ACADEMIC LITERATURE COMMONLY DIVIDES
GLOBALIZATION INTO THREE MAJOR AREAS: ECONOMIC GLOBALIZATION, CULTURAL
GLOBALIZATION, AND POLITICAL GLOBALIZATION.

4. IMPORTANCE OF
GLOBALIZATION
(A) PROPER USE OF RESOURCES: GLOBALIZATION LEADS TO EXPANSION OF MARKETS AND THIS ENABLE ORGANIZATION TO MAKE
PROPER USE OF AVAILABLE RESOURCES.
(B) MULTIPLE CHOICES: NO COUNTRY IS SELF SUFFICIENT AND EVERY COUNTRY DEPENDS UPON OTHER COUNTRY.
GLOBALIZATION HAS SOLVED THIS PROBLEM AND PEOPLE CAN HAVE BETTER CHOICE TO SATISFY THEIR NEED.
(C) FOREIGN EXCHANGE: GLOBALIZATION ENCOURAGE EXPORTS AND DISCOURAGE IMPORTS. THIS HELP TO EARN FOREIGN
EXCHANGE.
(D) CREATES EMPLOYMENT: GLOBALIZATION HELPS TO PROVIDE EMPLOYMENT TO A LARGE NUMBER OF PEOPLE. MULTINATIONAL
COMPANIES SUCH AS BUSINESS PROCESS OUTSOURCE POPULARLY KNOWN AS CALL CENTRE EMPLOYS AND APPOINT A LARGE
NUMBER OF PERSONNEL WITH HIGH PAY SCALE AND OTHER BENEFITS.
(E) GOVERNMENT INCENTIVES: GOVERNMENT ALSO PROVIDES VARIOUS INCENTIVES IN TAXES, CUSTOM DUTIES, PRE-SHIPMENT
FINANCE, POST SHIPMENT FINANCE AND MANY MORE. THIS IS DONE TO ENCOURAGE GLOBALIZATION.
(F) TECHNOLOGY: TECHNOLOGY IS THE LATEST AND FRUITFUL OUTCOME OF GLOBALIZATION. IT IS THE BEST EVEN GIFT.
TECHNOLOGIES NOT ONLY INCREASE EFFICIENTLY BUT THE ORGANIZATION AND EVERYONE HAVING A LITTLE KNOWLEDGE CAN
UPDATE ONE AND CAN STAND BY WORLD. GLOBALIZATION NOT ONLY ENABLES COMPETITION BUT ALSO VERY MUCH HELPFUL FOR
PROFIT OF MAXIMIZATION.
(G)SPREADING OF RISK OF LOSS: BUSINESS THY NAME IS RISK. THERE MAY BE DIFFERENT TYPES OF LOSSES IN EVERY BUSINESS.
VARIOUS LOSSES WHICH MAY BE IN DOMESTIC MARKET CAN BE EASILY COMPENSATED FROM INTERNATIONAL MARKET.
(H) BENEFIT TO THE CONSUMERS: GLOBALIZATION ENCOURAGES FREE AND FAIR COMPETITION AT WORLD LEVEL. DUE TO THIS,
ORGANIZATIONS TRY TO SUPPLY QUALITY GOODS AND THAT ALSO AT A REDUCED PRICE. THIS BENEFITS CONSUMERS.

5. GLOBALIZATION OPENS UP
INTERNATIONAL ACCESS
WITH THE WORLD INCREASINGLY
RESEMBLING THE “GLOBAL VILLAGE”
PREDICTED BY SOCIAL SCIENTIST
MARSHALL MCLUHAN DECADES IN THE
PAST, SMALL BUSINESSES ARE NO
LONGER RESTRICTED TO ONLY REACHING
CUSTOMERS IN THE U.S. THE EVOLUTION
OF DIGITAL COMMUNICATION HAS
OPENED UP SMALL BUSINESSES TO AN
INTERNATIONAL MARKET THAT THEY CAN
REACH THROUGH SOCIAL MEDIA
PLATFORMS, WEBSITE CONTENT, AND
MOBILE MARKETING CAMPAIGNS. FOR
EXAMPLE, IF YOU SELL COMIC BOOKS TO
A U.S. MARKET, THERE’S NOTHING
STOPPING YOU FROM PROMOTING YOUR
PRODUCTS TO JAPANESE YOUTH THAT
LOVE AMERICAN SUPERHEROES.
GLOBALIZATION LOWERS THE
COSTS OF CUSTOMER SERVICE
IF YOU RUN AN E-COMMERCE
BUSINESS, CHANCES ARE THAT YOU
NEED TO STAFF A CUSTOMER
SERVICE DEPARTMENT TO HANDLE
ORDERS AND COMPLAINTS.
GLOBALIZATION HAS MADE IT
POSSIBLE FOR YOU TO OUTSOURCE
YOUR CUSTOMER SERVICE TO
REMOTE STAFF OVERSEAS THAT CAN
HANDLE CUSTOMER INQUIRIES 24/7,
AT A MUCH LOWER PRICE THAN IF
YOU HIRED A U.S.-BASED COMPANY.
THIS HELPS YOU CUT EXPENSES,
AND STILL PROVIDE OUTSTANDING
CUSTOMER SERVICE.

6. GLOBALIZATION LEVELS THE
COMPETITIVE PLAYING FIELD
ALTHOUGH YOUR BUSINESS MAY
NEVER GENERATE THE KIND OF
REVENUE OF A MAJOR PLAYER IN THE
SAME INDUSTRY, GLOBALIZATION HAS
EQUALIZED THE INTERNATIONAL
PLAYING FIELD SO THAT EVEN SMALL
COMPANIES CAN COMPETE TO GET
THEIR SLICE OF THE GLOBAL BUYING
PIE. ONE EXAMPLE IS UBER, WHICH
ENTERED THE TAXI INDUSTRY BY
CHANGING THE GAME WITH RIDE
SHARING THAT CUSTOMERS COULD
ORDER ON MOBILE DEVICES. UBER
STARTED SMALL, BUT LEVERAGED
MOBILE MARKETING AND SOCIAL
MEDIA TO GROW INTO A COMPANY
NOW WORTH AN ESTIMATED $70
BILLION.
GLOBALIZATION BREEDS MORE
COMPETITION
DESPITE THE FACT THAT GLOBALIZATION
OFFERS SMALL BUSINESSES MANY
ADVANTAGES, IT ALSO PRESENTS A
MAJOR CHALLENGE, WHICH IS THAT THE
INCREASED INTERNATIONAL
OPPORTUNITIES ALSO LEADS TO
INCREASED COMPETITION. AS A RESULT
OF GREATER ACCESS TO
INTERNATIONAL MARKET,
GLOBALIZATION CREATES MORE
BUSINESSES THAT WANT TO GAIN A
PIECE OF THESE EMERGING MARKETS.
THIS MEANS THAT YOUR BUSINESS WILL
HAVE TO FIND DIFFERENT WAYS TO
DISTINGUISH ITSELF FROM THE
COMPETITION, WHICH TYPICALLY MEANS
FINDING A UNIQUE SELLING
PROPOSITION THAT EXPRESSES WHY
YOUR COMPANY IS WORTHY OF BEING
CHOSEN BY YOUR TARGET AUDIENCE.

7. CHALLENGES
• INTERNATIONAL RECRUITING.
• MANAGING EMPLOYEE IMMIGRATION.
• INCURRINGTARIFFSAND EXPORT FEES.
• PAYROLL AND COMPLIANCE CHALLENGES.
• LOSS OF CULTURAL IDENTITY.
• FOREIGNWORKER EXPLOITATION.
• GLOBAL EXPANSION DIFFICULTIES.
• IMMIGRATION CHALLENGES AND LOCAL JOB
LOSS.

8. ECONOMIC GLOBALIZATION
• ECONOMIC GLOBALIZATION REFERS TO THE WIDESPREAD INTERNATIONAL
MOVEMENT OF GOODS, CAPITAL, SERVICES, TECHNOLOGY AND INFORMATION. IT IS
THE INCREASING ECONOMIC INTEGRATION AND INTERDEPENDENCE OF NATIONAL,
REGIONAL, AND LOCAL ECONOMIES ACROSS THE WORLD THROUGH AN
INTENSIFICATION OF CROSS-BORDER MOVEMENT OF GOODS, SERVICES,
TECHNOLOGIES AND CAPITAL. ECONOMIC GLOBALIZATION PRIMARILY COMPRISES
THE GLOBALIZATION OF PRODUCTION, FINANCE, MARKETS, TECHNOLOGY,
ORGANIZATIONAL REGIMES, INSTITUTIONS, CORPORATIONS, AND LABOUR.
ECONOMIC GLOBALIZATION HAS BEEN EXPANDING SINCE THE EMERGENCE
OF TRANS-NATIONAL TRADE, IT HAS GROWN AT AN INCREASED RATE DUE TO
IMPROVEMENTS IN THE EFFICIENCY OF LONG DISTANCE TRANSPORTATION,
ADVANCES IN TELECOMMUNICATION, THE IMPORTANCE OF INFORMATION RATHER
THAN PHYSICAL CAPITAL IN THE MODERN ECONOMY, AND BY DEVELOPMENTS IN
SCIENCE AND TECHNOLOGY. THE RATE OF GLOBALIZATION HAS ALSO INCREASED
UNDER THE FRAMEWORK OF THE GENERAL AGREEMENT ON TARIFFS AND
TRADE AND THE WORLD TRADE ORGANIZATION, IN WHICH COUNTRIES GRADUALLY
CUT DOWN TRADE BARRIERS AND OPENED UP THEIR CURRENT ACCOUNTS AND
CAPITAL ACCOUNTS. THIS RECENT BOOM HAS BEEN LARGELY SUPPORTED
BY DEVELOPED ECONOMIES INTEGRATING WITH DEVELOPING COUNTRIES
THROUGH FOREIGN DIRECT INVESTMENT, LOWERING COSTS OF DOING BUSINESS,
THE REDUCTION OF TRADE BARRIERS, AND IN MANY CASES CROSS-BORDER
MIGRATION.

9. CRITICISM OF
GLOBALIZATION
• CRITICISM OF GLOBALIZATION IS SKEPTICISM OF
THE CLAIMED BENEFITS OF GLOBALIZATION. MANY
OF THESE VIEWS ARE HELD BY THE ANTI-
GLOBALIZATION MOVEMENT.
• GLOBALIZATION HAS CREATED MUCH GLOBAL AND
INTERNAL UNREST IN MANY COUNTRIES. WHILE
THE DYNAMICS OF CAPITALISM IS CHANGING AND
EACH COUNTRY IS UNIQUE IN ITS POLITICAL
MAKEUP, GLOBALIZATION IS A SET-IN-STONE
"PROGRAM" THAT IS DIFFICULT TO IMPLEMENT
WITHOUT POLITICAL UNREST.
• GLOBALIZATION CAN BE PARTLY RESPONSIBLE
FOR THE CURRENT GLOBAL ECONOMIC CRISIS.
VIEW OF GLOBALIZATION SHOW THAT
GLOBALIZATION IS A THREAT TO CULTURE AND
RELIGION, AND IT HARMS INDIGENOUS PEOPLE
GROUPS WHILE MULTINATIONAL CORPORATIONS
PROFIT FROM IT.
• ALTHOUGH GLOBALIZATION HAS PROMISED AN
IMPROVED STANDARD OF LIVING AND ECONOMIC
DEVELOPMENT, IT HAS BEEN HEAVILY CRITICIZED
FOR ITS PRODUCTION OF NEGATIVE EFFECTS.
GLOBALIZATION IS NOT SIMPLY AN ECONOMIC
PROJECT, BUT IT ALSO HEAVILY INFLUENCES THE
COUNTRY ENVIRONMENTALLY, POLITICALLY, AND
SOCIALLY AS WELL.

10. IMPACT ON INDIA
• INDIA'S ECONOMY HAS GROWN
DRASTICALLY SINCE IT
INTEGRATED INTO THE GLOBAL
ECONOMY IN 1991. IT HAS
DRASTIC IMPACT ON INDIA'S
ECONOMICAL CONDITION. ITS
AVERAGE ANNUAL RATE HAS
GROWN FROM 3.5% (1950–1980)
TO 7.7% (2002–2012). THAT RATE
PEAKED AT 9.5% FROM 2005–
2008. ECONOMIC GROWTH HAS
ALSO LED TO INCREASES IN THE
PER CAPITA GROSS DOMESTIC
PRODUCT (GDP), FROM $1,255 IN
1978 TO $3,452 IN 2005, AND
FINALLY TO $3,900 IN 2012.
POSITIVE
• VARIETY OF PRODUCTS :
MANY MNCS HAVE INVESTED
THEIR CAPITAL IN INDIA.
• 2. DEVELOPMENT IN
INFRASTRUCTURE.
• BOOST
TO INDIAN COMPANIES.
• BOOST TO SERVICE SECTOR.
• FOREIGN CURRENCY AND
FOREIGN DIRECT
INVESTMENT.
• GLOBAL FORM OF MODERN
BUSINESS.
• INCREASE IN COMPETITION.

11. NEGATIVE EFFECTS
• A BREAKING OF TRADITIONAL FAMILY SYSTEMS, MORE INDIVIDUALISM.
• URBAN CITIES ARE GETTING OVERPOPULATED BECAUSE OF THE MIGRATION FROM RURAL AREAS IN SEARCH OF
BETTER OPPORTUNITIES, THUS CREATING A PRESSURE ON LIMITED RESOURCES.
• THREATS TO DOMESTIC INDUSTRIES. MANY INDUSTRIES HAVE BEEN SUFFERING/ HAVE SHUT DOWN BECAUSE OF
CHEAPER IMPORTS.
• LOSS OF JOBS IN MANY TRADITIONAL SECTORS
• INDIAN CULTURE, CUSTOMS, AND TRADITIONS HAVE SEEN A DECLINE IN FOLLOWING BY THE NEWER
GENERATIONS.
• THE THREAT OF LOSS OF SOVEREIGNTY OF INDIGENOUS TRIBES/ TRIBAL CULTURES BECAUSE OF SETTING UP OF
INDUSTRIES IN SUCH AREAS.
• FAST DEPLETION OF LOCAL RESOURCES
• PROMOTION OF A SEDENTARY LIFESTYLE ALONG WITH UNHEALTHY FOOD CHOICES (WE DIDN’T HAVE PIZZAS,
BURGERS, FRIES, PASTA ETC. ON SUCH A MASSIVE SCALE BEFORE!)
• INCREASE IN THE AMOUNT OF LOAN PER PERSON WHICH WAS TAKEN FROM WORLD BANK AND OTHER
INTERNATIONAL INSTITUTES FOR DEVELOPMENT.DUE TO WHICH COUNTRY’S INTEREST ON LOAN IS IN
HUNDRED/THOUSAND OF CRORES. AND CITIZEN OF COUNTY ARE GENERALLY HELD RESPONSIBLE FOR THE
PAYMENT OF LOAN WHETHER THAT LOAN WAS TAKEN ANY OF THE POLITICAL PARTY.

12. THANKYOU
BY DEVESH KUAMR

13. Presented by: KishanChauhan

14. G
L
O
B
A
L
I
Globalization refers to the trend toward countries joining
together economically, through education, society and
politics, and viewing themselves not only through their
national identity but also as part of the world as a
whole.
Z
A
T
I
O
N

15. Types of Globalization
1. Economic
Countries that trade with many others and have few trade
barriers are economically globalised.
2. Social
A measure of how easily information and ideas pass
between people in their own country and between
different countries (includes access to internet and social
media networks).
3.Political
The amount of political co-operation there is between
countries.

16. Causes of Globalization:
1. Improved Communications
. The development of communication
technologies such as internet, email and
mobile phones have been vital to the growth
of globalisation because they help MNCs to
operate throughout the world.
. The development of satelliteTV channels such
as BBC andCNN have also provided worldwide
marketing avenues for the concept and
products of globalisation.

17. Causes of Globalization
2. Improved Transport
. The development of refrigerated and
container transport, bulk shipping and
improved air transport has allowed the easy
mass movement of goods throughout the
world.This assists globalisation.

18. Causes of Globalization:
3. Free Trade Agreements
. MNCs and rich capitalist countries have
always promoted global free trade as a way
of increasing their own wealth and influence.
. International organisations such as theWorld
TradeOrganisation and the IMF also promote
free trade.

19. Causes of Globalization:
4. Global Banking
. Modern communication technologies allow vast
amounts of capital to flow freely and instantly
throughout the world.
. The equivalent of up to $US1.3 trillion is traded
each day through international stock exchanges
in cities such as NewYork, London andTokyo.

20. Causes of Globalization:
5. The Growth of MNCs
. The rapid growth of big MNCs such as Microsoft,
McDonalds and Nike is a cause as well as a consequence
of globalisation.
. The investment of MNCs in farms, mines and factories
across the world is a major part of globalisation.
. Globalisation allows MNCs to produce goods and
services and to sell products on a massive scale
throughout the world.

21. The Effects of Globalization:
1.Changed Food Supply
. Food supply is no longer tied to the seasons.
We can buy food anywhere in the world at
any time of the year.

22. The Effects of Globalization:
2.Division of Labour
. Because MNCs search for the cheapest locations
to manufacture and assemble components,
production processes may be moved from
developed to developing countries where costs are
lower.

23. The Effects of Globalization:
3.Less Job Security
. In the global economy jobs are becoming more
temporary and insecure.
. A survey ofAmerican workers showed that
people now hold 7 to 10 jobs over their
working
life.

24. The Effects of Globalization:
4.Damage to the Environment
. More trade means more transport which
uses more fossil fuels and causes
pollution.
. Climate change is a serious threat to our
future.

25. The Effects of Globalization:
5.Cultural Impact
. Websites such asYouTube connect people
across the planet.As the world becomes
more unified, diverse cultures are being
ignored. MNCs can create a monoculture as
they remove local competition and thereby
force local firms to close.
Replacing

26. The Effects of Globalization
6. Increase in anti-Globalisation
Protests
. There is a growing awareness of the
negative impacts of globalisation. People
have begun to realise that globalisation can
be challenged by communities supporting
each other in business and society and
through public protest and political
lobbying.

27. Advantages of globalization
. Increased free trade between nations
. Increased liquidity of capital allowing
investors in developed nations to
invest in developing nations
. Corporations have greater flexibility
to operate across borders

29. Advantages of globalization
. Global mass media ties the world
together
. Increased flow of communications
allows vital information to be shared
between individuals and corporations
around the world
. Greater ease and speed of
transportation for goods and people

30. Advantages of globalization
. Reduction of likelihood of war
between developed nations
. Increases in environmental protection
in developed nations.

31. Disadvantages of globalization
. Increased flow of skilled and non-skilled jobs
from developed to developing nations as
corporations seek out the cheapest labor
. Increased likelihood of economic disruptions
in one nation effecting all nations
. Corporate influence of nation-states far
exceeds that of civil society organizations and
average individuals

32. Disadvantages of globalization
. Threat that control of world media by a
handful of corporations will limit cultural
expression
. Greater chance of reactions for globalization
being violent in an attempt to preserve
cultural heritage
. Greater risk of diseases being transported
unintentionally between nations

33. Analysis
Globalization Is Here to Stay!
Globalization does have problems and
negative effects, but it is not going to
disappear. So…
We need to learn how to reap its
benefits, and minimize its costs. To do
that, we must:
Understand its impacts
Work to remedy the problems
Work to spread the benefits as widely as possible

34. Complexities of International
Business
• Reporting requirements:-These are becoming more stringent
to drive greater transparency and investor confidence, while
tackling money laundering, tax evasion, and other crimes. Over
80% of the jurisdictions where TMF Group operates have
committed to exchanging information under the Common
Reporting Standard developed by the organisation for Economic
Co-operation and Development.
• Legislative changes:- These are becoming more frequent. Their
intention is often positive; for example, to bolster an economy or
make a country more attractive for investment. Some are not
likely to be simplifying, such as the yet-to-be-defined UK rules
that will apply post-Brexit. Regardless of their intent or the
politics behind them, they all require work by companies to stay
compliant.

35. Complexities of
International Business
• Labour laws:- Legislators, often in response to
local political pressures, create difficulty for firms
looking to operate globally. Where we operate,
specific reporting requirements and impediments
to hiring staff before a business has been
incorporated as a legal entity are major hurdles
for firms.
• Penalties for noncompliance:- Penalties
imposed by the authorities are seen as
disproportionately high in many jurisdictions.
With serious breaches, reputation and even
survival are threatened, as exemplified by
multibillion-dollar fines applying to banks caught
up in money laundering and market abuse cases.

36. Complexities
of International Business
• Accounting and tax requirements:- Local authorities often
now prescribe their own reporting formats. For example, some
Greek islands operate as independent provinces for compliance
and tax. VAT refunds are subject to different treatments,
depending on the tax office. In Greece, we have seen individual
cases of dividends being taxed at rates varying by more than 10%.

37. PRESENTED BY:-
KISHAN CHAUHAN(19-1072)

38. Contrasted BETWEEN
DOMESTIC BUSINESS AND
INTERNATIONAL BUSINESS
Contrasted between domestic
business and international
business

39. DOMESTIC BUSINESS
• Thebusinesstransactionthatoccurwithinthegeographicallimitsofthecountry
isknownasdomesticbusiness.Itisabusinessentitywhosecommercialactivities
areperformedwithinanation
• Alternativelyknownas internalbusinessorsometimesashometrade.The
producerandcustomerofthefirmbothresideinthecountry.Inadomestictrade
,thebuyerandsellerbelongtothesamecountryandsothetradeagreementis
basedonthepracticeslawsandcustomsthatarefollowedinthecountry
• Therearemanyprivilegeswhichadomesticbusinessenjoyslikelowtransaction
cost,lessperiodbetweenproductionandsaleofgoodlowtransportationcost
encouragessmall-scale enterprisesetc.

40. International business
• Internationalbusinessisonewhosemanufacturingandtradeoccurbeyondthebordersofthe
homecountryalltheeconomicactivitiesincludedincross-bordertransactioncomesunder
internationalorexternalbusiness.Itincludesallthecommercialactivitieslikesales,investment
,logistics,etc.Inwhichtwoormorecountriesareinvolved.
• Thecompanyconductinginternationalbusinessisknownasmultinationalortransnational
company.Thesecompaniesenjoyalargecustomerbasefromdifferentcountriesanditdoesnot
havetodependonasinglecountryforresources.Furthertheinternationalbusinessexpandsthe
tradeandinvestmentamongstcountries.
• Howeverthereseveraldrawbackswhichactasabarriertoentryintheinternational marketlike
tariffsandquota,political,socio-cultural,economicandotherfactorsthateffectsthe
internationalbusiness.

41. Differences between domestic business
and international business
DOMESTIC BUSINESS
1. Meaning
• Domestic business is defined
as the business whose
economic transaction is
conducted within the
geographical limits of the
country
2. Area of operation
• The area of operation of the
domestic business is limited
which is the home country .
INTERNATIONAL BUSINESS
• International business
refers to a business which
is not restricted to a single
country .
• The area of operation
of international business is
vast i.e. it serve many
counties at the same time.

42. 3. Quality of standard
• The quality standard of product and
services provided by domestic
business is relatively low .
4. Currency
• Domestic business deals in the
currency of the country in which it
operates
5. Capital
• Domestic business requires
comparatively less capital
investment
6. Nature of customer
• The nature of customer of a
domestic business is more or less
same .
• The quality standard of international
business are very high which are set
according to global standards .
• International business deals in the
multiple currencies .
• International business requires huge
capital investment.
• International business wherein the
nature of customer of every country
it serves is different

43. 7. Restriction
• Domesticbusinesshasfewrestrictionas
itissubjecttorules,lawtaxationofa
singlecountry.
8.BusinessResearch
• Businessresearchcanbeconductedeasily
indomesticbusiness
9.Mobilityoffactorsofproduction
• Indomesticbusinessfactorsof
productionarefree
• Internationalbusinesssubjecttorules,law
taxation,tariff andquotaofmany
countriesandthereforeithasfacemany
restrictionwhicharebarrierinthe
internationalbusiness
• Ininternationalbusinessitisdifficultto
conductbusinessresearchasitisexpensive
andresearchreliabilityvariesfromcountry
tocountry.
• Ininternationalbusinessitisrestricted

44. Conclusion
• Carryingouttheactivitiesofinternationalbusinessandits
managementisfarmoredifficultthanconductingadomestic
business.Duetochangesinpolitical,economic,socio-
culturalenvironmentacrossthenationsmostbusiness
entitiesfinditdifficulttoexpandtheirbusinessglobally.To
becomeasuccessfulplayerintheinternationalmarketfirms
needtoplantheirbusinessstrategiesaspertherequirement
oftheforeignmarket.

45. PREPARED BY:-
DEVESH KUMAR(19/833)
KISHAN CHAUHAN(19-1072)
TOVREZ ALAM(19/1134)