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Lp 4-wk6-17 mar15

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ChaudhRy Arain

This document discusses globalization from several perspectives: 1. It identifies key drivers of globalization including technology, resources, and reduced legal restrictions that enable the free flow of goods, services, capital and labor. 2. It acknowledges some negative impacts of globalization such as job losses and economic stagnation in some areas as well as a widening divide between developed and developing nations. 3. It outlines factors that influence the globalization process such as the interlinking of national economies through market forces and trade agreements as well as the role of communication technology in connecting the world.

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LP-4 dt 17 Mar 15 Ch -3 Globalization and the Manager 5/15/2015 1
GLOBALIZATION Prime Mover IT Leisure Time Availability of resources incl Labour Ease of Legal restrictions Higher Margins Cost Cutting Techniques ToT Copyrights Inventions / Innovations Education Transport (land, air and sea) 5/15/2015 2
ILL AFFECTS OF GLOBALIZATION Loss of lives in BD, Karachi, South America etc Overall economies are stagnant Loss of production facilities as well as expertise Divide expanding between developing and under developed countries and / or LDC 5/15/2015 3
PROCESS OF GLOBALIZATION Interlinking of destinies --- national and economies and business systems Mkt Economy Socialist Economy Reasons for Mkt Eco Privatization Dismemberment of state owned monopolies Deregulation of markets Establishment of Legal Entities --- Regulators 5/15/2015 4
Int Trade --- Gift of Globalization FDI Elimination of Tariffs MFN status Quota (GSP+) EU, ASEAN, NAFTA, BRICS, SAARC, GCC ETC Role of Comm In USA 3 min call during 1930-1990 has come down from $245 to 3.32 By 1998 it was just 36 Cents WWW 1990 less than 1 mn 1995 50mn 2007 1.5Bn Rev in 2004 $6.8Tr 5/15/2015 5
GLOBALIZATION -- CONSTRAINTS Protectionist policies Subsidies Consumer behavior Fuel Prices Differences in social culture Copy rights litigations Modified Cold War Sanctions Freezing of bank accounts Tax frauds / tax heavens / Money laundering etc 5/15/2015 6
GLOBALIZATION BENEFITS MNC / MNEs Global Learning Scale Economies Location Economies Job Seekers 5/15/2015 7
GLOBALIZATION CHALLENGES Global Standardization Local Customization Strategy Managing People Geocentric Ethnocentric Polycentric 5/15/2015 Thank you 8

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Lp 4-wk6-17 mar15

  • 1. LP-4 dt 17 Mar 15 Ch -3 Globalization and the Manager 5/15/2015 1
  • 2. GLOBALIZATION Prime Mover IT Leisure Time Availability of resources incl Labour Ease of Legal restrictions Higher Margins Cost Cutting Techniques ToT Copyrights Inventions / Innovations Education Transport (land, air and sea) 5/15/2015 2
  • 3. ILL AFFECTS OF GLOBALIZATION Loss of lives in BD, Karachi, South America etc Overall economies are stagnant Loss of production facilities as well as expertise Divide expanding between developing and under developed countries and / or LDC 5/15/2015 3
  • 4. PROCESS OF GLOBALIZATION Interlinking of destinies --- national and economies and business systems Mkt Economy Socialist Economy Reasons for Mkt Eco Privatization Dismemberment of state owned monopolies Deregulation of markets Establishment of Legal Entities --- Regulators 5/15/2015 4
  • 5. Int Trade --- Gift of Globalization FDI Elimination of Tariffs MFN status Quota (GSP+) EU, ASEAN, NAFTA, BRICS, SAARC, GCC ETC Role of Comm In USA 3 min call during 1930-1990 has come down from $245 to 3.32 By 1998 it was just 36 Cents WWW 1990 less than 1 mn 1995 50mn 2007 1.5Bn Rev in 2004 $6.8Tr 5/15/2015 5
  • 6. GLOBALIZATION -- CONSTRAINTS Protectionist policies Subsidies Consumer behavior Fuel Prices Differences in social culture Copy rights litigations Modified Cold War Sanctions Freezing of bank accounts Tax frauds / tax heavens / Money laundering etc 5/15/2015 6
  • 7. GLOBALIZATION BENEFITS MNC / MNEs Global Learning Scale Economies Location Economies Job Seekers 5/15/2015 7
  • 8. GLOBALIZATION CHALLENGES Global Standardization Local Customization Strategy Managing People Geocentric Ethnocentric Polycentric 5/15/2015 Thank you 8