Drivers & hurdles of globalization. 1. V.B.Shah Institute of Management Subject: Business Environment Topic: Drivers & Hurdles of Globalization.
Roll no. Name 226 Nasit Janak 236 Patel Vidur 237 Patel Vikas 238 Patel Vinay 239 Pathak Denish 252 Savani Jay TYBBA (Div-2) Group Members. Globalization The term Globalization refers to processes of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Advances in transportation and Telecommunications, infrastructure, including the rise of the telegraph and its posterity the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities. Drivers of Globalization The media and almost every book on globalization and international business speak about different drivers of globalization and they can basically be separated into five different groups:. 1) Technological drivers Technology shaped and set the foundation for modern globalization. Innovations in the transportation technology revolutionized the industry.
The most important developments among these are the commercial jet aircraft and the concept of containerization in the late 1970s and 1980s. Inventions in the area of microprocessors and telecommunications enabled highly effective computing and communication at a low-cost level. Finally the rapid growth of the Internet is the latest technological driver that created global business and e-commerce. 2) Political drivers Liberalized trading rules and deregulated markets lead to lowered tariffs and allowed foreign direct investments in almost all over the world.
The institution of GATT (General Agreement on Tariffs and Trade) 1947 and the WTO (World Trade Organization) 1995 as well as the ongoing opening and privatization in Eastern Europe are only some examples of latest developments. 3) Market driversAs domestic markets become more and more saturated, the opportunities for growth are limited and global expanding is a way most organizations choose to overcome this situation. Common customer needs and the opportunity to use global marketing channels and transfer marketing to some extent are also incentives to choose internationalization. 4) Cost drivers Sourcing efficiency and costs vary from country to country and global firms can take advantage of this fact. Other cost drivers to globalization are the opportunity to build global scale economies and the high product development costs nowadays. 5) Competitive drivers with the global market, global inter- firm competition increases and organizations are forced to “play” international. Strong interdependences among countries and high two-way trades and FDI actions also support this driver.
Market Drivers Of Globalization
Hurdles of Globalization 1)Technological Barriers Standards-related trade measures, known in WTO parlance as technical barriers to trade play a critical role in shaping global trade. Governments, market participants, and other entities can use standards-related measures as an effective and efficient means of achieving legitimate commercial. regulations and testing, certification, and other procedures are involved in determining whether or not products conform to standards and technical regulations. Significant foreign trade barriers in the form of product standards, technical regulations and testing, certification, and other procedures are involved in determining whether or not products conform to standards and technical regulations.
2) Cultural BarriersIt is typically more difficult to do business in a foreign country than in one’s home country due to cultural barriers. With the process of globalization and increasing global trade, it is unavoidable that different cultures will meet, conflict, and blend together. People from different cultures find it is hard to communicate not only due to language barriers but also cultural differences. Free download ultraman mebius 3gp hd.
It is typically more difficult to do business in a foreign country than in one’s home country, especially in the early stages when a firm is considering either physical investment in or product expansion to another country. Expansion planning requires an in- depth knowledge of existing market channels and suppliers, of consumer preferences and current purchase behavior, and of domestic and foreign rules and regulations. 3) Ethical Barriers Despite international trading laws and declarations, countries continue to face challenges around ethical trading and business practices. Although some argue that the increasing integration of financial markets between countries leads to more consistent and seamless trading practices, others point out that capital flows tend to favor the capital owners more than any other group. With increased international trade and global capital flows, critics argue that income disparities between the rich and poor are exacerbated, and industrialized nations grow in power at the expense of under-capitalized countries. Anti-globalization groups continue to protest what they view as the unethical trading practices of multinational businesses and capitalist nations, often targeting groups such as the WTO and IMF. 4) Economics Barriers Trade barriers are government-induced restrictions on international trade, which generally decrease overall economic efficiency.
Drivers Of Globalization Pdf
Trade barriers cause a limited choice of products and, therefore, would force customers to pay higher prices and accept inferior quality. Trade barriers generally favor rich countries because these countries tend to set international trade policies and standards. Economists generally agree that trade barriers are detrimental and decrease overall economic efficiency, which can be explained by the theory of comparative advantage.
Table of contents 1 Introduction 2 Drivers of Globalization 3 Theories and Models of Gobalization and International Trade 3.1 From mercantilism to Smith and Ricardo 3.2 Ricardo to the next step: Factor Proportions Theory and the Leontief Paradox 3.3 Vernon Life-Cycle Theory 3.4 Porter’s Diamond Approach 3.5 Monopolistic Advantage Strategy 3.6 Eclectic Theory 4. Discussion of Theories and Drivers 4.1 Ricardo-Mill and outsourcing 4.2 Dunning, Cantwell and the influence of technology 5 Bibliography 1 Introduction '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.' Bill Clinton (American 42nd US president (1993-2001)) The first part of this research paper will define the major drivers of globalization and then introduce some of the basic and advanced theories of international trade and business.
With this foundations it will then try to integrate theories and drivers and compare them to the actual situation and discuss if they are appropriately describing what we are seeing today. 2 Drivers of Globalization The media and almost every book on globalization and international business speak about different drivers of globalization and they can basically be separated into five different groups: 1) Technological drivers Technology shaped and set the foundation for modern globalization. Innovations in the transportation technology revolutionized the industry.
The most important developments among these are the commercial jet aircraft and the concept of containerisation in the late 1970s and 1980s. Inventions in the area of microprocessors and telecommunications enabled highly effective computing and communication at a low-cost level. Finally the rapid growth of the Internet 1 is the latest technological driver that created global e-business and e-commerce. 2) Political drivers Liberalized trading rules and deregulated markets lead to lowered tariffs and allowed foreign direct investments in almost all over the world. Arta serial number crack software pencaria. The institution of GATT (General Agreement on Tariffs and Trade) 1947 and the WTO (World Trade Organization) 1995 as well as the ongoing opening and privatization in Eastern Europe are only some examples of latest developments. 3) Market drivers As domestic markets become more and more saturated, the opportunities for growth are limited and global expanding is a way most organizations choose to overcome this situation.
Common customer needs and the opportunity to use global marketing channels and transfer marketing to some extent are also incentives to choose internationalization. (Ferrier, 2004) 4) Cost drivers Sourcing efficiency and costs vary from country to country and global firms can take advantage of this fact.
Major Drivers Of Globalization
Other cost drivers to globalization are the opportunity to build global scale economies and the high product development costs nowadays. (Ferrier, 2004) 5) Competitive drivers With the global market, global inter-firm competition increases and organizations are forced to “play” international. Strong interdependences among countries and high two-way trades and FDI actions also support this driver. 3 Theories and Models of Gobalization and International Trade Theories of International Trade extend to the 15th century and the age of mercantilism. This next paragraph will provide a brief summary of the most important theories and also cover two less popular theories, the monopolistic advantage theory (Kindleberger / Hymer) and the integrated eclectic theory (Dunning). 1 evolved from the military ARPA (Advanced Research Projects Agency) network 1969, which was extended to an university network 1986 and finally became public as the world wide web in 1990, due to Tim Berners-Lee at the CERN institution (Wikipedia, 2005). About GRIN GRIN Publishing, located in Munich, Germany, has specialized since its foundation in 1998 in the publication of academic ebooks and books.
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