Globalization can be defined as the expansion of economic activities across national borders. It involves increasing economic integration and interdependence between countries through growing cross-border flows of goods, services, capital, and knowledge. A key example of globalization is the expansion of KFC restaurants from a small American village to locations worldwide. The main drivers of globalization are international trade, financial flows, communications, technological advances, and population mobility. Globalization can occur at the world level through increased production and financial integration between countries, at the country level through a nation's economic interconnection globally, at the industry level through a sector's cross-border interdependence, and at the company level through a firm's multinational revenue, assets, capital

1. Introduction to globalization
Definition:
Globalization can be defined as simply as expansion of economic activities across political
boundaries of nation states. It refers to process of deepening economic integration, increasing
economic openness and growing economic independence between countries in the world
economy.
Characteristics of Globalization:
1. Rapid growth in international financial transactions.
2. Fast growth in trade especially among MNC’s.
3. Surge in foreign direct investment, largely contributed by MNC’s.
4. The emergence of global markets.
5. The diffusion of technologies and ideas through rapid extension of a globalized transportation
and communication systems.
Case study:
KFC (Kentucky Fried Chicken), a restaurant that has started its operations in a small village in
America, now has its franchises all over the world is a good example of globalization.

2. Drivers Of Globalization:
1. Globalization represents the increasing integration of the world economy, based on
five interrelated drivers of change.
2. International trade
3. Financial flows
4. Communications
5. Technological advances
6. Population mobility.
Levels Of Globalization:
1. Globalization at the world level:
At a worldwide level, globalization refers to the growing economic interdependence
among countries as reflected in increasing cross-border flow of goods, services, capital
and knowledge. Globalization at the world level consists of two distinct phenomena:
1. Globalization of production
2. Globalization of finance.
2. Globalization at the level of a specific country:
Globalization refers at the level of a specific country to the extent of interlinkages
between country’s economy and the rest of the world.

3. 3. Globalization at the level of a specific industry:
Globalization at the level of a specific industry refers to the degree to which a company’s
competitive position within that industry in one country is interdependent with that in another
country.
4. Globalization at the level of specific company:
Globalization at the level of specific company refers to the extent to which a company has
expanded its revenue and asset base across countries and engages in cross-border flows of
capital, goods and know-how across subsidiaries.
Case study Philips:
All businesses are facing serious disruptions from shifting global economies, technical
advancements, and the need for strong, consistently branded online multinational presence.
Royal Philips Electronics of the Netherlands has found a way to respond to these challenges
without jeopardizing its ongoing business.
A world leader in the consumer lifestyle, healthcare, and lighting industries, Philips integrates
technologies and design into people-centric solutions, based on fundamental customer insights
and the brand promise of “sense and simplicity.” With 50,000 products, 1,800 logos, a website
present in 57 countries and translated in 35+ target languages, and 500 consumer marketing
managers in the Consumer Lifestyle sector, Philips’ global brand management strategy requires
an adaptive system of people, process, and technology to provide a unifying influence.

4. GLOBAL INTEGRATION OF CHINA vs INDIA
This case study tells the story of how Philips has met and is keeping pace with changing and
often disruptive business environments by evolving operations and communications
touchpoints in a just-in-time approach that maximizes global opportunity based on
consumer need.
INDICATORS CHINA INDIA
1995 2007 1995 2007
 Trade in goods as % of GDP - 67.8 - 30.8
 Foreign Direct Investment ($ million) 35,849 1,38,413 2,144 22,950
 Foreign Direct Investment (as % of - 4.3 - 2.0
GDP) 1,18,090 3,73,635 94,464 2,20,956
 External Debt ($ million) - -1,900 - -1,350
 Movement of people (net migration in - 280 - 32
thousands)
 Communication ( international internet
bandwidth bits per second per capita
income)