GLOBALISATION OF BUSINESS, Syed Sajid [reading in the dark .txt] 📗

GLOBALISATION OF BUSINESS

GLOBALISATION OF BUSINESS

i
Globalization theory
Globalization aspects
Worl wide flow of economics
Export and import views
Understanding the transition
of human society in the mellenium
The field of economics
International relations
Management and sociology

ii
Globalisation Business
Environment
Changes in the international economy
Liberalization
Govt role in development and transition
Market economies
Wide spread programme to de-regulate economies to reform Regulations in the area of global business environment

iii.
Forein Direct Investments
Well established international
corporations
Population ,poverty and health

iv.
Globalisation Dimensions
The state of the literature
Trade Dimensions
International Relations
Developing and integrating Approach to globalization

v.
Global Leadership
Necessity of global leadership
The nature of global conflict
The US role


GLOBALISATION OF BUSINESS

During the last decades of the 20th century many barriers to international trade fell and a wave of firms began pursing global strategies to gain competitive advantage.
Rather than thinking in terms of national markets and national economies, leaders of business thought in terms of global markets.

i. Globalization theory

Globalisation is a business philosophy based on the belief that the world is becoming more homogeneous - national distinctions are fading and will eventually disappear.
Globalisation is an increase in interconnectedness and interdependence of economic activity and social relations.
If the world is homogeneous then companies need to think globally and standardise their strategy across national boundaries.
Globalisation concerns:

• Trade in goods and services
• Investment
• Labour force movement
• Products
• Production
• Technology
• Research and development
• Exchange of ideas and knowledge
• Intellectual property

Key features of globalisation
• Rapid expansion of international trade
• Internationalisation of products and services by large firms
• Growing importance of multinational corporations
• Increase in capital transfers across national borders
• Globalisation of technology
• Shifts in production from country to country
• Increased freedom and capacity and firms to undertake economic transactions across national

• boundaries
• Fusing of national markets
• Economic integration
• Global economic interdependence

Growth of multinational enterprise:

There are various forces driving the growth of MNCs:
• The search for growth markets
• Globalisation of markets
• Desire to reduce production costs
• Desire to shift production to countries with lower unit labour costs
• Desire to avoid transportation costs
• Desire to avoid tariff and non tariff barriers
• Forward vertical integration
• Extension of product life cycles
• Deregulation of capital markets


Globalization aspects

Globalisation (or globalization) describes the process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade. The term is most closely associated with the term economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, the spread of technology, and military presence.[1] However, globalization is usually recognized as being driven by a combination of economic, technological, sociocultural, political, and biological factors. The term can also refer to the transnational circulation of ideas, languages, or popular culture through acculturation. An aspect of the world which has gone through the process can be said to be globalised…

World wide flow of economics

The United Nations ESCWA says globalization "is a widely-used term that can be defined in a number of different ways. When used in an economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labour... although considerable barriers remain to the flow of labor... Globalization is not a new phenomenon. It began towards the end of the nineteenth century, but it slowed down during the period from the start of the First World War until the third quarter of the twentieth century. This slowdown can be attributed to the inward-looking policies pursued by a number of countries in order to protect their respective industries... however, the pace of globalization picked up rapidly during the fourth quarter of the twentieth century..."

Export and import views

Free trade agreements (FTAs) are generally made between two countries. Many governments, throughout the world have either signed FTA, or are negotiating, or contemplating new bilateral free trade and investment agreements.

The agreements are like stepping stones towards international integration into a global free market economy. There are another way to ensure that governments implement the liberalisation, privatization and deregulation measures of the corporate globalisation agenda.

It is assumed that free trade and the removal of regulations on investment will head to economic growth reducing poverty and increasing standards of living and generating employment opportunity.

Past evidences show that these kinds of agreements allow transnational corporations (TNCs) more freedom to exploit workers shaping the national and global economy to suit their interests. In simple terms it removes all restrictions on businesses.

FTAs severely constrain future governments in their policy options and help to lock in existing economic reforms which may have been imposed by the IMF, World Bank or Asean Development Bank, or pursued by national governments of their own volition. It work towards removing all restrictions on businesses as other free trade and investment agreements perform.

FTAs are sometimes of narrow range in their dealing of traded goods. You can note the US-Cambodia bilateral textile trade agreement which was extended in January 2002 for a further 3 years.

India and Sri Lanka signed a free trade agreement in December 1998 with India agreeing to a phase out of tariffs on a wide range of Sri Lankan goods within 3 years, while Sri Lanka agreed to remove tariffs on Indian goods over eight years. One of its objectives which was stated was to contribute, by the removal of barriers to bilateral trade "to the harmonious development and expansion of world trade".

Other FTAs are much more comprehensive and cover other issues including services and investment. These agreements generally take existing WTO agreements as their benchmark. They often strive to even go further than what is set out in the WTO rules.


Understanding the transition of human society in the mellenium

Researchers from NCAER and University of Maryland recently released a report titled Human Development in India: Challenges for a Society in Transition. This report is published by the Oxford University Press.
India’s rapid economic expansion has raised global interest in its complex society. This report highlights how poverty and affluence intersect with age-old divisions of regional inequalities, gender, caste, and religion that have long structured human development in India. Together, these economic and social forces shape every facet of Indians’ lives—their children’s education, health and medical care, the creation of new families, the care of older generations, and their entry into, or exclusion from, important social connections. Results from the India Human Development Survey (IHDS) of 41,554 households will inform a wide range of contemporary debates and policy challenges.

Results presented in the report highlight three issues:
1. Persistent Social Inequalities: In spite of the rapid transformation of the Indian economy, social inequalities based on caste, ethnicity and religion persist. Dalits and adivasis are at the bottom of most indicators, Muslims and OBCs in the middle and forward caste Hindus and other minority religions at the top. These positions are not immutable, for example, when it comes to education, Muslims are as disadvantaged as dalits and adivasis, although their economic well-being is more on par with that of OBCs. As if inequalities in the parental generation were not enough, future generations seem doomed to replicate these inequalities since dalit, adivasi and
Muslim children seemed to be left of out skill acquisition and are far less likely to be able to read and perform basic arithmetic operations than other children.
The report also indicates sharp gender inequalities with extremely low rates of female labour force participation. Education fails to reduce these differences, with women’s labour force disadvantage growing rather than reducing with primary education. When women are in the labour force, they tend to work mostly on family farms or caring for livestock. Even when women engage in paid work, their daily income is only 53 paisa per rupee earned by men in rural areas and 68 paisa in urban areas. Women’s economic vulnerability is compounded by their social vulnerability
2. Spatial Disparities: This report documents particularly high urban advantage in human development in the six metropolitan areas—Mumbai, New Delhi, Bangalore, Kolkata, Chennai, and Hyderabad—compared with second- and third-tier cities. Similarly, the rural disadvantage is particularly sharp in the least-developed villages. Indians in metropolitan areas seem to live in a totally different universe from their brothers’ and sisters’ in the least-developed villages: they have higher household incomes; a higher proportion of adults who speak English fluently (16% vs. 2% for males) and have some computing skills (19% vs. 2%); and have a cell phone in the household (24% vs. 1%).
One of the most striking results in this report is the large state difference in almost all indicators of human development. Infant mortality rates in Kerala (estimated at 9 per thousand) rival those of developed countries; in contrast, those in Uttar Pradesh (estimated at 80 per thousand) are substantially higher. Similarly female literacy rates in the Northeast are 81%, about twice the rate in Rajasthan.
3. Lack of Public Services: This report documents the poverty of service delivery in many institutions. Water and electricity remain irregular: 43% of households with electric connections do not have electricity at least 18 hours per day; 63% of households with piped water do not get water at least 3 hours per day. Teacher absenteeism in government schools is rampant, and almost a third of children in these schools report having been beaten or pinched in the preceding month. Barely half of children aged 8–11 can read a simple paragraph, and less than half can do two-digit subtractions. About 1 in 6 of the government heath centres visited for the report had dirty walls and about 1 in 7 had dirty floors. The doctor/director was
absent at the time of the visit in almost one-quarter of the visits. Not surprisingly, government services remain underutilized. The vast majority of sick people, even the poor, rely on private health care. Enrolments in private schools are rapidly rising, even in rural areas.

The Field of Economics

Economics is the social science that analyzes the production, distribution, and consumption of goodsand services. The term economics comes from the Ancient Greek οἰκονομία (oikonomia,"management of a household, administration") from οἶκος (oikos, "house") + νόμος (nomos, "custom" or "law"), hence "rules of the house(hold)" Current economic models emerged from the broader field of political economy in the late 19th century. A primary stimulus for the development of modern economics was the desire to use an empirical approach more akin to the physical sciences.[
Economics aims to explain how economies work and how economic agents interact. Economic analysis is applied throughout society, in business, finance and government, but also in crime, education, the family, health, law, politics, religion, social institutions, war, and science. The expanding domain of economics in the social sciences has been described as economic imperialism.
Common distinctions are drawn between various dimensions of economics. The primary textbook distinction is between microeconomics, which examines the behavior of basic elements in the economy, including individual markets and agents (such as consumers and firms, buyers and sellers), and macroeconomics, which addresses issues affecting an entire economy, including unemployment, inflation, economic growth,