GLOBALIZATION

If one looks back around a hundred or more years ago, life was certainly
simpler than it is today. This refers to the fact that there have been a plethora of
developments that have impacted everyone. The developments that one may
consider in particular are technological ones as well as intellectual ones. Some
may even go as far as asserting that each of these drives the other. However,
because of more awareness and technological development, life today is more
complex than it was before. In every field one considers today, things are
generally more complex. The business environment is a good example, as it is one
that is influenced by an array of newer ideas as well as new technology. The
technology mentioned here refers to the inventions or innovations that have
made globalization possible. Business in today’s world has to consider this macro
economical phenomenon, as it is a major part of the business today.
Globalization does not only affect international trade, but also has an impact on
trade within each country. In addition to talking about the unavoidable
globalization aspect of business today, it is important to focus on business ideas
and relationships that form a major part of them.

- Globalization is the tendency of businesses, technologies, or philosophies

to spread throughout the world, or the process of making this happen. The global
economy is sometimes referred to as a globality, characterized as a totally
interconnected marketplace, unhampered by time zones or national boundaries.
The proliferation of McDonalds restaurants around the world is an example of
globalization; the fact that they adapt their menus to suit local tastes is an
example of glocalization (also known as internationalization), a combination of
globalization and localization.

Whether or not the establishment of the global marketplace will be beneficial is

in dispute. Proponents believe that globalization has the potential to create
greater opportunities for growth throughout the world, benefiting the developed
nations while leveling the playing field everywhere else; opponents of
globalization believe that it will merely increase the opportunities for the
wealthier nations to take advantage of the poorer ones and, furthermore, could
eradicate regional diversity and lead to a homogenized world culture.
Globalization – the growing integration of economies and societies around the
world – has been one of the most hotly-debated topics in international economics
over the past few years. Rapid growth and poverty reduction in China, India,
and other countries that were poor 20 years ago, has been a positive aspect of
globalization. But globalization has also generated significant international
opposition over concerns that it has increased inequality and environmental
degradation. This site provides access to some of the most recent presentations on
globalization and some of the leading research on the subject.

Many countries in the Asian market have shown remarkably

rapid economic growth with the expansion of business methods
and companies across national boundaries. India, however,
although it presents the world market with a population that is
second only to China, offers a more complicated picture in
which threats are assessed as well as opportunities. This paper
examines India from a global perspective to see what are
perceived as the positive and negative effects of globalization
on the countries fiscal and trade sectors. The perceived gulf
between India’s potential and reality are explained. Those who
have been observing the nation’s Gross Domestic Product for
many years have seen India lag behind other Asian countries
that have shown comparatively phenomenal economic growth.
Changing economic policies that lifted many Indian trade
restrictions in the early 1990s are assayed in terms of both the
increased opportunities they present for many individuals in the
nation as well as, internally, the increased weaknesses that are
represented by political interference and what is seen by many
to be an increasing gap between rich and poor in the nation.
"The Indian market, the second largest national market in the
world, was essentially closed off from the outside world by the
strictures of a quasi-socialist control system. Imports were
limited and foreign firms were not encouraged to enter the
domestic sphere at all, as if they did so, the bureaucratic
repercussions were often seen to be extremely prohibitive. At
the same time, this bureaucratic government structure incurred
its own costs and labor issues, which were not alleviated by the
flow of multi-national capital. The public sector became a sort of
economic monolith within the country, and increases in
bureaucracy made this structure increasingly inscrutable, even
to those within its sphere of operation. At the same time, the
private sector was being virtually ignored in terms of economic
opportunity."
 Looking globalization with manager point of view,for a corporate
manager sector,free flow of
technology,capital,information,people and assets,all these
words are meaningless unless they are converted into
practice.examples:Telco in pune,Kalayani,MBT,Airtel etc have
made a remarkable change giving globalization value in true
sense.There are different approaches in globalization.
Companies with global parameters:Relience is Indian company
but its profit is comparable with the global market.
Annual results in brief:march 08
Sales----------------------1,39,269.00
Operating growth---------23,306.00
Interest--------------------1,077.00
Gross Profit----------------23,124.00
EPS(Rs)--------------------133.82
Relience has a revenues US $34 billion.Relience enjoys global
leadership in its business being the largest polyester yarn and
fiber producer in the world and among the top 5 to 10
producers in the world in major petro-chemical products.The
group exports products in excess of US $20 to 108 billons,
countries in the world.

Companies as global subcontractors:

Comparative competitive advantages of companies:Apparel and textile Industries:two companies-
Welspun and GHCL recently acquired top global brands.These are the first such acquisitions by the
Indian Home Textile Industry.
India’s largest terry towel producer and exporter and Asia’s 4 th largest terry towel
player,Welspun India’(Get quote) acquired 85% stake in CHT Holdings,the holding company of
UK’s largest and number one terry towel brand Christy,also the world’s oldest towel company.
There is already a huge opportunity in terms of outstanding of home textiles to the world’s
biggest markets like US and EU,which account for 60% of the 70% billion global home textile
market.
Companies in service industry(IT-Telecom revolution,BPO,KPO jobs):Elcher Motors has also
forayed into engineering services outstanding with the acquisition of the US-based company.Dsign
Intent Engineering (DIE) and the company expects new business to contribute revenue to the tune of
$100 million in the next four years.