Indian Globalization

7/29/2019 Indian Globalization

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GLOBALIZATION&

Its Impact

PRESENTED BY :

AKSHAT SEHGAL (5), HENRY RAWAL (15), KRITIKA GOYAL (21),

PRIYANKA VAGRECHA (35), SARANSH SIYAL (44), SHILPA JAIN (45)


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The term Globalization means International Integration.

It is a process through which the diverse world is unifiedinto a single society.

Opening up of world trade, development of advancedmeans of communication, internationalisation of financialmarkets, growing importance of MNC's, populationmigrations and more generally increased mobility of

persons, goods, capital, data and ideas

GLOBALIZATION AND

INTERNATIONAL BUSINESS


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Increase in and expansion of technology

Liberalization of cross-border trade and

resource movements

Development of services that supportinternational business

Growing consumer pressures

Increased global competition

Changing political situations

FACTORS DRIVING

GLOBALIZATION


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ROLE OF MNCs :

MNE(Multinational Enterprises) :

Multinational Enterprise is a firm that

engages in foreign direct investment

(FDI).

Types of MNEs :

Global

Multi-domestic

Transnational


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INVOLVEMENT OFCULTURE

Culture refers to the shared behavior patterns based

on attitudes, values and beliefs of a group of people.

Elements /Determinants of Culture-:

EducationReligion

Language

Aesthetics

Attitudes and Beliefs

Technology and materialculture

Social Unit (family/tribe)

Opinion Leaders


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FDI

Companies adopt FDI route in order to get acontrolling stake in a host country for a long term

purpose.

It helps the home country to a great extent in terms

controlling other markets.

Types Of FDI:-

Inward FDI

Outward FDI


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CHINA & its Dominating

Nature :

China great potential in terms of domestic market, low

cost labor, large amount of import export and political

stability.

Improving technology gaining profits

Chinas Potential:

International leader in exports majorly in machinery

electronic products, apparels, steel, iron, medical &

optical products.

Joining of WTO in 2001 proved to be a milestone thus

making its economy more transparent.


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Inexpensive Chinese goods and Chinese financing of

companies deficit have kept U.S. inflation and interest

rates down and prolonged the economic booms.

Chinese misappropriation of intellectual property

creates losses for many of the companies.

A manic construction and transportation boom has

raised global raw materials prices, to the great benefitof producers and a great cost to consumers.

NET EXPORTS BY CHINA:

Japan 13.02 %

European Union 12.71 %

ASEAN 10.61 %

South Korea 10.2 %

United States 7.7 %

Taiwan 2.04

%

India 1.36

%

Hong Kong 0.87 %

South & West Asia 1.64 %

Other Countries 13.54 %


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Position of India :

India currently accounts for 1.2% of World trade as of

2006 according to the WTO.

Considering global trade - India's share of world

merchandise exports increased from .05% to .07% over

the past 20 years. Over the same period China's share has

tripled to almost 4%.

India under trades by 70-80% given its size, proximity to

markets and labour cost advantages.

Despite reducing import restrictions several times in the

2000s India was evaluated by the WTO in 2008 as more

restrictive than similar developing economies, such as

Brazil and China which has been cited as a factor which

has isolated it from the global financial crisis of 2008

2009 more than other countries, even though it had

reduced ongoing economic growth.


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Labor

Equality

Government

Environment

GLOBALIZATION

PROS AND CONS


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Increasedjob

opportunities.

Upgradededucation

system

Increasedtraining

PROS:Job

displacement.

Lowered laborstandards

Downwardwage pressure

Decreasedunion power

CONS:

Impact on Labor :

PROS AND CONS :


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PROS: CONS:

MNC powerincreased

MNCs

externalizecost tocountries

Competitionresults in toomanyconcessions

MNCsinfluence localpolicies

Pressure toreduce social

benefits

IMPACT ON GOVT. :


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IMPACT ON ENVIRONMENT :

PROS: CONS:


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Outsourcing

Business moving to other countries to takelabour and cost advantage

Ex. car parts, computer parts, toys, clothesand call centers

Sweat Shops

Manufacturing workplace that typicallytreats its workers inhumanely, paying lowwages and unsafe working conditions

Ex. Nike, Disney, the Gap, Guess, Wal-Mart

GLOBALIZATION

IN NUTSHELL:


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3 Ways of looking at

globalization :

Further globalization is inevitable.

International business will grow

primarily along regional rather thanglobal lines.

Forces working against furtherglobalization and international

business will slow down both

trends.


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Documents

Indian Globalization