1. PRESENTATION ON: EMERGING GLOBALIZATION & TRADING BLOCKS SUB: BUSINESS ENVIRONMENT GIVEN BY: ABDULLAH SHAHID MBA 2ndSem PIMT MANDIGOBINDGARH
2. GLOBALIZATION DEFINITION: According to dictionary globalization means different things to different people. But in a broad concept Globalization (or globalization) describes an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and trade. The term is sometimes used to refer specifically to economic globalization:the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology.. However, globalization is usually recognized as being driven by a combination of economic, technological, sociocultural, political, and biological factors.
3. ECONOMIC CONTEXT OF GLOBALIZATION: When used in an economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labor. Three channels of Globalization: 1: trade in goods and services 2: movement of capital 3: flow of finance
10. Political - some use "globalization" to mean the creation of a world government which regulates the relationships among governments and guarantees the rights arising from social and economic globalization. Informational - increase in information flows between geographically remote locations. Arguably this is a technological change with the advent of fibre optic communications, satellites, and increased availability of telephone and Internet. Ecological - the advent of global environmental challenges that might be solved with international cooperation, such as climate change, cross-boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species Social - development of the system of non-governmental organizations as main agents of global public policy, including humanitarian aid and developmental efforts Technical & Cultural
11. NEGATIVE EFFECTS: Effects on disease: Globalization, the flow of information, goods, capital and people across political and geographic boundaries, has also helped to spread some of the deadliest infectious diseases known to humans. Eg. Swine flu Brain drain: Opportunities in richer countries drives talent away from poorer countries, leading to brain drains.Indian students going abroad for their higher studies costs India a foreign exchange outflow of $10 billion annually. Economic liberalization: Government deregulation and failed regulation of Wall Street's investment banks were important contributors to the subprime mortgage crisis. Effect on Income disparity: A study by the World Institute for Development Economics Research at United Nations University reports that the richest 1% of adults alone owned 40% of global assets in the year 2000. The combined wealth of the 10 million millionaires grew to nearly $41 trillion in 2008
12. TRADING BLOCKS A trade block is a type of intergovernmental agreement , often part of a regional intergovernmental organization ,where regional barriers to trade (tariffs and non tariffs barriers) are reduced or eliminated among the participating states. Types of Trading Blocks Economic & Monetary Union Common Markets Custom Unions Free trade areas Other
13. Economic & Monetary Union » All economic policies (monetary, fiscal, welfare) shared by all member countries. Example: EU: Europen union CEMC: Economic And Monetary community of central America OECS: Organization of Eastern Caribbean States UEMOA: West African Economic & monetary union
14. Common Market » Free movement of all factors of production » Examples: CACM: Central American Comman Market CAN: Common Andean Community CCCM: Caribbean Community & Comman Market EEA: Europen Economic Area
15. Customs Union » Free trade within the area, and common national trade policies with outsiders (Þ no need for customs inspectors) » Examples: EAC: East African Community EAEC: East Asian Economic Caucus EUCU: Europian Union Custom Union GCC: Gulf Cooperation Counsil
16. Free-Trade Area » Free trade within the area, but separate national trade policies with outsiders (Þ need for customs inspectors) » Examples: European Free Trade Area (EFTA, 1960) 2.Latin American Free Trade Area (LAFTA, 1960, deceased 1969) 3. Association of South East Asian Nations (ASEAN, 1976) 4. North American Free Trade Area (NAFTA, 1994)
17. Others: In other block the best example can be discussed as OPEC. OPEC : Organization of the Petroleum Exporting Countries Created at Baghdad conference on 10-14 sep, 1960 Head Quarter is situated in Vienna MEMBER: Qatar, Indonesia , Libya, UAE, Algeria, Nigeria, Ecuador, Angola, Gabon In other blocks another example is Commonwealth member countries.
