it is very useful for M-com, MBA students.

1. BYUMAIRFAROOQmUGHAL
M-COMFROMPU
E-mail umair_farooq123@yahoo.com
Contact no +92 331 3366205
Working as a Teacher & Banker. Currently Teach International business & finance,
Interpersonal skill, I to B, MBF, Economics, Computer, EOP, BCRW, Audit and B-
Law in The house of accounting and New Stars College.
UMAIR FAROOQ MUGHAL

2. 
 What is Globalization.
 Globalization Definition.
 Key Factors of Globalization.
 The Emergency of Global Institutions.
 Drivers of Globalization.
 Changing Demographic of Global Economy.
 The Globalization Debate/ Negative Faults/
Disadvantages.
ROAD MAP: Previewing the
Concepts
UMAIR FAROOQ MUGHAL

3. 
 Introduction:
 Globalization means shift toward the
international market. It is a process by which
businesses or other organization develops
international influence or start operating on an
international scale. The term globalization has been
increasingly used since the mid-1980 and 1990. In
2000 IMF identify the four basic aspects of
globalization; 1) Trade & transportation (2) Capital
& investment (3) Movement and migration of
people (4) Knowledge.
What Is Globalization
UMAIR FAROOQ MUGHAL

4. 
 ‘’The worldwide movement toward economic,
financial, trade & communication integration is
called globalization.’’
 ‘’Globalization is the process of international
integration arising from the interchange of world
views, product, ideas & other aspect of culture’’
 ‘’The movement of domestic & national market
toward international market is called
globalization’’
Globalization Definition
UMAIR FAROOQ MUGHAL

5.  Globalization of Market
 Globalization of Product
Globalization of Market:
 ‘’The expansion & access of businesses to all over the world
to reach the needs of the customer internationally is called
globalization of market.’’
Examples:
 Access to McDonald Pizza
 MTV OR BBC
 LEVIS JEANS
 COCA COLA
 PEPSI
Key Factors of Globalization
UMAIR FAROOQ MUGHAL

6. 
Globalization of Production:
 ‘’Sourcing of material & services from other countries to
gain advantage from price differences in different
nations is called globalization of production.’’
Example:
 HONDA who is making the spare parts in China
assembling the products in Pakistan & designed the
engine in Japan.
 Type PUBLIC. Founded in 1948. Headquarters Japan.
Area served Worldwide. Slogan ‘’THE POWER OF
DREAMS’’
Key Factors of Globalization
UMAIR FAROOQ MUGHAL

7. 
 Help manage, regulate & police the global
marketplace.
 Promote the Establishment of multinational treaties
to govern the global business system.
 Examples Include:
 GATT [General Agreement on Tariffs & Trade]
Regulate international trade. Dealing rules of
trade among Nations & serve 153 Countries. Its
purpose was reduction in tariffs & trade barriers.
The Emergency of Global Institutions
UMAIR FAROOQ MUGHAL

8. 
 WTO 1995 [World Trade Organization]
It’s MOTTO ‘’UNITY IS STRENGTH’’ Its establish in 1995. That is
international trade organization. It’s Purpose to liberalize international trade.
It replaces GATT & signed by 160 Nations. Dealing rules of trade.
 IMF 1944 [International Monetary Fund]
It’s MOTTO ‘’COMPLACENCY MUST BE AVOIDED’’. Give loan
& monetary facilities to countries & serve 188 countries. IMF was established
to maintain order in the international monetary system. It works for economic
development, reducing poverty, secure finance etc.
 WB 1944 [World Bank]
It’s MOTTO ‘’WORKING FOR A WORLD FREE OF POVERTY’’.
WB was set up to promote Economic Development. It server 188 Countries. It
provide loan to developing country for capital programs.
The Emergency of Global Institutions
UMAIR FAROOQ MUGHAL

9. 
 UN 1945 [United Nation]
Its current mission is: "To foster the growth of the world's
bureaucracies while developing innovative methods for our
member nations to disguise corruption as humanitarian aid" It
serves 193 countries.
 Maintain international pace & security.
 Develop Friendly Relation among nation.
 Co-operates in solving international problems.
 Promoting respect human rights.
 G-20 1999 [Group of 20]
It formed in 1999. Its purpose to bring together
systemically important industrialized & developing economies to
discuss key issue in global economy.
The Emergency of Global Institutions
UMAIR FAROOQ MUGHAL

10. 
Drivers of Globalization:
"Globalization is not something we
can hold off or turn off . . . it is the
economic equivalent of a force of
nature -- like wind or water."
Drivers of Globalization
UMAIR FAROOQ MUGHAL

11. 
 following factors that underlie the trend towards
greater globalization:
Drivers of Globalization
Decline Trade &
Investment Barriers
Technological Change Other Drivers
 International Trade
[Import and Export]
 FDI [Investment in
Foreign Country]
 World war II
 GATT
 WTO
 World war II
 Microprocessors
 Telecommunication
 Internet
 Transportation
Technology
 WWW
 Market Drivers
 Cost Drivers
 Competitive Drivers
 Political Drivers
UMAIR FAROOQ MUGHAL

12. 
Decline Trade & Investment Barriers:
After the Great Depression and the Second World War, developed
countries have opted to remove barriers to international trade and
foreign direct investment. After the emergency of global institutions
like GATT, WTO, IMF etc. the trade and investment barriers decline.
Now we are easily sale our product and purchase anything due to
globalization.
 International Trade:
‘’ International trade occurs when a firm exports goods or services to
consumer in another country’’.
 FDI [Foreign Direct Investment]:
‘’FDI occurs when a firm invests resources in business activities
outside its home country.’’
Drivers of Globalization
UMAIR FAROOQ MUGHAL

13.  Technological Change:
Over the last decades there has been significant technological advancement. Such as
Microprocessor, internet, Telecommunication etc.
 Microprocessor:
Due to invention of microprocessor after world war II many changes
accurse in globalization. These include satellite, optic fiber and wireless communications as
well as the Internet, the worldwide web and provided the possibilities of e-commerce.
 Telecommunication:
Telecommunications is technology that sends information over
distances. Mobile phones, land lines, satellite phones and voice over Internet protocol
(VOIP) are all telephony technologies.
 Internet:
The rapid growth of the Internet is the latest technological driver that created
global e-business and e-commerce. By using WWW you can easily purchase and sale
anything in the world.
 Transportation Technology:
Improvement in transportation technology in air, sea and rail systems
to accelerate the globalization activities. Also, decline in transportation costs and less time
needed to travel from one place to another.
Drivers of Globalization
UMAIR FAROOQ MUGHAL

14. 
 Others Drivers:
 Market Driver:
Many consumer goods and services are now universally available, no matter
one’s geographic location or social setting. Now days we are easily purchase any brand
product due to globalization of market.
 Cost Driver:
Sourcing efficiency and costs differ from country to country and global firms
can take advantage of this fact. Like Honda Company manufacture his product with the
help of three countries China, Pakistan and Japan.
 Competitive Driver:
With the global market, global inter-firm competition increases and
organizations are forced to “play” international. Due to competition between countries or
industries everyone make his product differ and more reliable as compare to others.
 Political Driver:
Liberalized trading rules and deregulated markets lead to lowered tariffs and
allowed foreign direct investments in almost all over the world. It is only due to
liberalized political environment of a country.
Drivers of Globalization
UMAIR FAROOQ MUGHAL

15. 
 Change world output & world trade Picture:
Share of world output generated by
developing countries increasing since 1960.
 Changing Foreign Direct Investment (FDI) Picture:
The stock of FDI generated by rich
countries decline. Cross border flow of FDI rising. The
larger recipient of FDI is China.
Changing Demographic of Global Economy
UMAIR FAROOQ MUGHAL

16. 
 Anti-globalization Protest:
Protestors think globalization change the world in negative way
 Globalization Jobs & Income:
 Globalization & National sovereignty:
Economic power is shifting away from national government
toward international organization like WTO, UN, and EU.
 Globalization & the World Poor:
Gap between rich & poor countries increase due to free trade
& benefits of globalization not equally shared.
 Causes Unemployment
 Environmental Problems
A company may want to build factories in other countries
because environmental laws are not as strict as they are at home.
The Globalization Debate/ Negative
Faults/ Disadvantages
UMAIR FAROOQ MUGHAL

17. 
 Diseases can Spread:
Human, animal and plant diseases can spread more
quickly through globalization.
 Globalization of Labor Policies:
Due to free flow trade and manufacturing facilities more
from advance to less advance country therefor labour policies also
change.
 Loss of Culture
 Conflicts
 Monopoly
 Unequal Wealth Distribution
 Inflation
 Infrastructural Differences
The Globalization Debate/ Negative
Faults/ Disadvantages
UMAIR FAROOQ MUGHAL