international business startegies

1. Globalization / International Strategy Prof. S P Das M. Phil (Economics), M.B.A. (Finance), M.A. (Economics), MCCP, PGDM, PGDFM, DBM, DHMCT, B.Com, UGC-SET (Economics)

2. Globalization? Globalization may be defined as “the process of integration of economies across the world through cross-border flow of factors, products and information.” The IMF defines globalization as “the growing interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology. Prof. S P Das

3. Levels of Globalization Micro Level – Globalization of Business and Firm Macro Level – Globalization of the World Economy Prof. S P Das

4. Features of Globalization Operates and Plans to expand all over the world Removing differences between domestic and foreign markets Buying and Selling across the globe Manufacturing and Production any where as per the economy of scale Product planning and development based on market consideration of entire world Factors of production are sourced from around the globe Creation of global culture among the minds of employees Carries both promises and threats at the national, regional, organization and individual level. Prof. S P Das

5. Drivers of Globalization Increasing International Trade Production Sharing / Global Outsourcing International Investments and Production Cross Border Mergers & Acquisitions Economic Integration though Trade Pacts Rapid Increase in Communications and expansion of technology Development of supporting services Consumer Pressures Increase in Global Competition Prof. S P Das

6. Approaches to Globalization Ethnocentric Approach Polycentric Approach Region-centric Approach Geocentric Approach Prof. S P Das

7. Globalization Process / Stages Prof. S P Das

8. Benefits of Globalization Free Flow of Capital Free Flow of Technology Spreading out of Manufacturing Facilities Balance Development of world Economy Increase in Production and Consumption Low Prices with High Quality Cultural Exchange and Demand for Variety of Products Increase in Employment and Income High Standard of Living Balance Human Development Increase in welfare and prosperity Prof. S P Das

9. Ill Effects of Globalization Global dominance of industries by MNC May kill domestic Industries Exploitation of Human Resources Under employment / unemployment Decline in Demand for domestic products Increasing inequality between classes Transfer of Natural Resources Commercial and Political Colonialism Threat to National Sovereignty / Security Prof. S P Das

10. Globalization Policy Suggestions of UNDP Manage Trade and Capital Flows more carefully Invest in Poor People Foster Small Enterprises Properly Manage New Technology Reduce Poverty and introduce safety nets Influence Governance Prof. S P Das

11. Strengths of India Skilled & Cheaper Human Resources Wide Base / Market Growing Entrepreneurship Growing Domestic Market Niche Markets Economic Liberalization Competition Prof. S P Das

12. Challenges for India Bureaucratic policy and procedures High cost of many vital inputs Poor / Inadequate infrastructure Technological Obsolescence Resistance to change Poor Quality image Limited R & D Lack of experience in managing International Business Prof. S P Das

13. Entry Strategies Prof. S P Das

14. Assignment Select any company of your choice having international business activities. Evaluate the International Business Expansion / Entry Strategy adopted by the selected company. Prof. S P Das

15. Thank you Prof. S P Das