Friday, 20 December 2019

Unit 7: Globalisation


Unit 7: Globalisation

Business is increasingly becoming international or global in its competitive environment, orientation and strategic intent because of the facts like the competition, liberalisation, globalisation, etc.

The prolonged recession before the World War II in the West, led to an international consensus after the World War II in the west, led to an international consensus after the World War II that a different approach towards international trade is needed.

The efforts of the IMF, the World Bank and the WTO along with the efforts of individual countries led to globalisation of business.

In fact, the term ‘International Business’ has emerged from ‘International Marketing’, which in turn, emerged from the term ‘export marketing’.

The meaning of globalisation varies according to how one approaches the subject and even how one feels about it.

Definitions will also vary according to the social actor defining it (e.g., worker, employer, government official), on the adopted perspective (e.g., historical, economic, legal, sociological, etc.) and on the ideological orientation of the people or institutions who use the term.

Because the definition of globalisation is not settled, defining the term is itself a subject of some debate.

In simple words, globalisation means moving towards an interdependent global economy.

There are multiple reasons why companies go global like: (i) Profit advantage, (ii) domestic demand constraints, (iii) competition, (iv) government policies, (v) availability of resources, etc.

With technological developments and relaxation on rules and regulations on international business most of the companies are entering into global market.

Globalisation of market and production has become major driving force behind globalisation.

Corporations are today changing their strategies and are reorganizing their functions to cope up with the changed scenario.

Whether, it is their production process or location, product strategy, marketing, finance, HR policies, etc.
Globalisation: Growing interdependence of countries.

Globalisation of markets: It refers to the merging of historically distinct and separate national markets into one huge global marketplace.

Global Company: A company which takes the whole world as a single market and it standardises operations and its product worldwide in one or more of the firm’s functional areas.

International marketing: It refers to marketing carried out by companies overseas or across Notes national borderlines.

Mandate: An official order or commission to do something.

Outsourcing: Any task, operation, job or process that could be performed by employees within an organisation, but is instead contracted to a third party for a significant period of time.

Principle of reciprocity: It states that favours, benefits, or penalties that are granted by one state to the citizens or legal entities of another, should be returned in kind.

World Wide Web: A widely used information system on the Internet that provides facilities for documents to be connected to other documents by hypertext links, enabling the user to search for information by moving from one document to another.

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