Globalization: Definition, Scope, Impact on Global Business, Historical Development, and Relationships with International Trade, Financial Market, and Technology

This presentation provides an overview of globalization, including its definition, scope, and impact on global business. It also covers the historical development of globalization and its relationships with international trade, financial market, and technology. The advantages and disadvantages of globalization are discussed, along with the need to minimize its negative impacts.

GLOBALIZATION

DEFINITION
Globalization can be defined
as the process with the help
of which organizations and
businesses start their
operations on an
international scale or
develop international
influence (Steger, 2017).

SCOPE
The scope of globalization
is extended to :
 Technology
 Economics
 Finance
 Culture
 Politics (Olteanu, 2011)

I M PA C T O F G L O B A L I Z AT I O N O N
G L O B A L B U S I N E S S
Increased Mergers and Joint Ventures
(Boudreaux, 2008)
Rise in Competition
Rise in Technical know-how
Rise in Opportunities
Rise in Investment Levels
Economies of Scale

Historical development
The history of globalization is divided into three phases.
The first phase crossed cultural divides and resulted in
long distance trade relations (Pfister, 2012).
In the second phase, European global trade began when
trade was dominated by Venice.
The third phase resulted in rapid expansion of European
Economy and led to the present day global economy.

R E L AT I O N S H I P O F
G L O B A L I Z AT I O N W I T H
I N T E R N AT I O N A L T R A D E
 Since 1960, export and production is altered by
globalization in world economy.
 Rapid international economic integration initiated in
1980s due to favorable policy implications of globalization.
 With technological advancement, globalization facilitated
rapid international trade.
 This relationship will further bring development in the
economies in future.

R E L AT I O N S H I P O F
G L O B A L I Z AT I O N W I T H F I N A N C I A L
M A R K E T
The development of financial markets is enhanced
by globalization in following ways-
 Bringing mobility in capital
 Increasing innovation and competition of
national financial sectors
 Reduction in interest rates and risk
 Increasing profitability (Tuca, 2014)

R E L AT I O N S H I P O F G L O B A L I Z AT I O N
W I T H T E C H N O L O G Y
Earlier, underdeveloped countries lacked the
required technology for the production of
goods, communication, etc.
Globalization brought technological
advancements in such countries and improved
the standard of living of people.
This relationship will continue in the future
and encourage further development of the
economies.

A D VA N TA G E S O F
G L O B A L I Z AT I O N
 Boost in average growth rate of the economy
 Enhances the efficiency of financial sectors and
banking insurance
 Expansion of consumer goods industries and
employment opportunities
 Attracts foreign capital
 Sharing of idea/ skills and technology (Collins, 2015)

D I S A D VA N TA G E S O F
G L O B A L I Z AT I O N
Inflation
Inequality
Unemployment
Dominant global brands
Trade Imbalances
Threat to local and national economies (Lore
Central, 2017)

CONCLUSION
The progressive development of the world economies
is the result of globalization.
Globalization has changed the living standards of
people due to increased access to quality products.
It has both advantages and disadvantages.
It must be encouraged for the further development of
the world economies by taking steps towards
minimizing its negative impacts.

R E F E R E N C E S
Boudreaux, D. J. 2008. Globalization. ABC-CLIO.
Collins, M. 2015. The Pros And Cons Of Globalization, [Online]. Available at:
https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-globaliza
tion/#701b8442ccce
[Accessed on: 22 February 2018].
Hamilton, S. M. 2008. Globalization. ABDO.
Kunnie, J. E. 2015. The Cost of Globalization: Dangers to the Earth and Its People.
McFarland.
Lechner, F. J. 2009. Globalization: The Making of World Society. John Wiley &
Sons.
Lore Central. 2017. 4 MAIN ADVANTAGES AND DISADVANTAGES OF
GLOBALIZATION, [Online]. Available at:
https://www.lorecentral.org/2017/10/14-main-advantages-and-disadvantages-of-glo
balization.html
[Accessed on: 22 February 2018].

R E F E R E N C E S
Olteanu, A. 2011. THE SCOPE OF GLOBALIZATION AND ITS IMPACT ON THE
ECONOMIC AND FINANCIAL-BANKING SECTOR, [Online]. Available at
http://cks.univnt.ro/uploads/cks_2011_articles/index.php?dir=02_economy%2F&downloa
d=cks_2011_economy_art_024.pdf
[Accessed on: 22 February 2018].
Pfister, U. 2012. Globalization, [Online]. Available at:
http://ieg-ego.eu/en/threads/backgrounds/globalization [Accessed on: 22 February 2018].
Steger, M. B. 2017. Globalization: A Very Short Introduction. Oxford University Press.
Tabachnick, D. and Koivukoski, T. 2012. Globalization, Technology, and Philosophy.
SUNY Press.
Tuca, S. 2014. the relationship between globalization and the economic crisis, [Online].
Available at : annals.seap.usv.ro/index.php/annals/article/download/671/635 [Accessed
on: 22 February 2018].
Waters, M. 2013. Globalization. Routledge.