Contemporary World

• Globalization


  The increasing interaction of people, states or countries through the growth of economic process of integration and growing interdependence of the world's economies, cultures, and populations
• Charler Taze Rusrel (Tower Bible and Tract) coined the term "CORPORATE GIANT"


  1897
• The word "Globalize" was coined

  1970
• The word "Globalize" was popularized by Theodre Levitt


  1980
• IMF 4B aspect Gloka..

  Late 2000
• Aspects of Globalization


  • Trade transaction
  • Capital Investment movement
  • Migration of People
  • Dissemination of knowledge
• Endocrine glands include the pituitary gland, thyroid gland, parathyroid glands, adrenal glands (including the adrenal medulla), pancreas, ovaries/testes, and pineal gland.
• Globalization


  The increasing interaction of people, states or countries through the growth of the international flow of money, ideas and culture
• Globalization


  The growing interdependence of the world's economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information
• Globalization


  The interconnectedness of people and business across the world that eventually lead to global, cultural, political and economic integration
• Globalization


  The free movement of goods, services and people across the world in a seamless and integrated manner
• Globalization


  The intensification of worldwide social relations which link distance localities in such a way that local happenings are shaped by events occurring many miles away and vice versa
• Characteristics of globalization


  • Social mobility of movement of people regardless of reason
  • Intensification of interactions
  • Active process
  • Borderless interaction
  • Spread of ideas, knowledge, technology, culture & religion
• Historical foundation of the term "globalization"

  • 1897 Charles Taze Russel (Tower bible and tract) society coined the term CORPORATE GIANTS
  • 1930 the word "Globalize" as noun appeared in a publication entitled "Towards new education"
  • 1970 Globalization was coined
  • Early 1981 – Globalization was used in economic sense
  • 1980's Globalization was popularized by Theodore Levitt
  • Late 2000's the IMF identified the 4 basic aspect of globalization
  • 2013 the globalization was used to defined" borderless society"
  • 2017 Globalization was used in academe
  • 2018 Globalization was used now in all disciplines
• Indicators of globalization


  • Interdependence of countries in different social aspects
  • Advancement of science, technology
  • Environmental issues across borders
  • Economic globalization cultural globalization and political globalization
• Nature of globalization


  • A conglomerate of various multiple units located in different parts of the global which are linked by common ownership
  • Multiple units draw a common pool of resources such as money, credit, information, patents, trade names and control system
  • The units respond to some common strategy
  • Product presence is in different markets of the world
  • Human resources are highly diverse
• Reasons for globalization


  • Rapid shrinking of time and distance across the globe
  • Domestic markets are no longer rich as a consequence of many interlocking factors
  • Companies and institutions go global to find political and economic stability which is relatively good in other countries than the country of origin
  • To get technological and managerial know how of other countries due to their advancement in science, technology, education, health and other filed of discipline
  • To reduce high transportation cost if one goes globally using the advance tools of communication and information
  • To be close to raw materials and to markets for their finished products which are not available in the country of origin
• Stages of globalization


  • Stage 1. Arm length service activity of an essentially domestic company/institution which moves into new market overseas by linking up with local dealers and distributors
  • Stage 2. The company/institution takes over these activities on its own
  • Stage 3. The domestic-based company/institutions begins to carry out its own manufacturing marketing sales in key foreign markets
  • Stage 4. moves to full insider position in these market supported by a complete business system including the research and development and engineering
• Merits of globalization
• Demerits of globalization
• Barter system


  An old method of exchange where people exchanged services and goods for other services and goods in return
• Mercantilism


  An economic system of trade that spanned from the 16th century to the 18th century, based on the idea that a nation's wealth and power were best served by increasing exports and so involved increasing trade
• Gold standard


  A monetary system in which the standard economic unit of account is based on a fixed quantity of gold, widely used in the 19th and early part of the 20th century
• Industrial evolution
• Key players/actors in globalization

  • International organizations
  • Intergovernmental
  • Supranational
  • Non-governmental
  • Large manufacturing corporations
  • Multinationals
  • Transnationals
• International organizations


  Major players in the non-state that promote voluntary cooperation and coordination
• Intergovernmental organization


  Composed of nation-states that promote voluntary cooperation and coordination among its members, with decisions and agreements not enforceable and members not surrendering any sovereignty
• Supranational organizations


  Composed of non-states that promote voluntary cooperation and coordination among its members, with members surrendering their power in specific areas to the higher organization, and decisions and agreements that must be obeyed, often with courts to determine violations
• International non-governmental organizations


  Not created by an international treaty or intergovernmental agreement, often focusing on specific issues around the world, and not-for-profit voluntary associations funded by philanthropies or partial government funding
• Large manufacturing corporations


  Corporations that sell goods and manufactured products to be used all over the world
• Multinational corporations


  Global corporations that own and control production of goods or services in one or more countries aside from their home/origin country, with a centralized management system and face barriers in decision making due to this centralization
• Transnational cooperations


  Commercial enterprises that operate substantial facilities and do business in more than one country, without a home/origin country and without a centralized management system, allowing them to gain more interest in the local market since they maintain their own systems
• Global economy


  Refers to the international exchange of goods and services that is expressed in monetary units of money
• World economy


  • Exclusively limited to human economic activity and is typically judged in monetary terms
• Global economy


  • Concerned on the globalization of production, finance, markets, technology, organizational regimes, institutions, corporations and labor
• Economic integration


  1. Improve the allocation of natural resources

  2. Promote technology transfer

  3. Enhance living standards
• Economic integration factors


  • Regional integration
  • Trade liberalisation
  • Foreign direct investment
  • Privatisation
  • Deregulation
• Horizontal integration


  Marketing agencies combine to form a union to reduce their effective number and the extent of actual competition in the market
• Vertical integration


  • A firm performs more than one activity in the sequence of the marketing process
  • Linking of two or more functions in the marketing process with a single firm or under a single ownership
• Conglomeration integration


  A combination of agencies or activities not directly related to each other may operate under a unified management