Factors Influencing Globalization in Business

INTER NATIONAL Factors INTER NATIONAL Globalization (SUBJECT CODE: 20PCO2CC6) Factors Influencing Influencing Globalization BUSINESS BUSINESS

FACTORS FACTORS INFLUENCING GLOBALIZATION INFLUENCING GLOBALIZATION DISCUSSED DISCUSSED!

HISTORICAL HISTORICAL The trade routes were made over the The trade routes were made over the years so that goods from one kingdom or years so that goods from one kingdom or country moved to another. The well known country moved to another. The well known silk silk- -route from east to west is an example route from east to west is an example of historical factor. of historical factor.

ECONOMY ECONOMY The cost of goods and values to the end The cost of goods and values to the end user determine the movement of goods user determine the movement of goods and value addition. The overall economics and value addition. The overall economics of a particular industry or trade is an of a particular industry or trade is an important factor in important factor in globalisation globalisation. .

RESOURCES AND RESOURCES AND MARKETS MARKETS The natural resources like minerals, coal, The natural resources like minerals, coal, oil, gas, human resources, water, etc. oil, gas, human resources, water, etc. make an important contribution in make an important contribution in globalization globalization.

PRODUCTION ISSUES PRODUCTION ISSUES Utilisation Utilisation of of built sluggishness sluggishness in in domestic production production makes makes a a manufacturing look look outward outward and and go go global overseas overseas markets markets and autos, autos, four four wheelers wheelers and classical classical example example. built up up capacities capacities of of production, domestic market market and manufacturing company global. . The The development development of of and manufacturing manufacturing plants and two two wheelers production, and over company over plants in in wheelers is is a a

POLITICAL POLITICAL The political issues of a country make The political issues of a country make globalisation globalisation channelised channelised as per political bosses. The regional trade understandings or bosses. The regional trade understandings or agreements determine the scope of agreements determine the scope of globalization. Trading in European Union and globalization. Trading in European Union and special agreement in the erstwhile Soviet block special agreement in the erstwhile Soviet block and SAARC are examples. and SAARC are examples. as per political

INDUSTRIAL INDUSTRIAL ORGANISATION ORGANISATION The technological development in the The technological development in the areas of production, product mix and firms areas of production, product mix and firms are helping organisations to expand their are helping organisations to expand their operations. The hiring of services and operations. The hiring of services and procurement of sub procurement of sub- -assemblies and assemblies and components have a strong influence in the components have a strong influence in the globalisation globalisation process process

TECHNOLOGIES TECHNOLOGIES The The stage stage of of technology import import or or export export of of products country country. . European European countries exported exported their their chemical, 50 50s s and and 60 60s s and under under developed developed countries computer computer / / software software related counties counties like like UK, UK, USA, technology in in a a particular products or or services countries like chemical, electrical, electrical, mechanical and exports exports high high tech countries. . Today related services USA, etc etc. . particular field services from like England England and mechanical plants tech (then) (then) goods Today India India is is exporting services to to advanced field gives gives rise from or or to to the and Germany Germany plants in in goods to to exporting advanced rise to to the