Globalization

1. Globalization
International Marketing
Instructor: Dr. IRFAN

2. What is
Globalization?

3. Question
What is the truest
definition of Globalization?
Answer
Princess Diana's death
Question
How come?

4.  Broad Definition
 Worldwide interconnection at the
cultural, political, and economic level
resulting from the elimination of
communication and trade barriers.
 A process of convergence of cultural,
political and economic aspects of life.
(Giddins, 1999)
What is Globalization?

5.  Positive
 Some view it as a process that
is beneficial

a key to future world economic
development - and also

inevitable and irreversible
What is Globalization?

6.  Negative
 Others regard it with hostility,
even fear, believing that

it increases inequality within and
between nations,

threatens employment and living
standards

and thwarts social progress
What is Globalization?

7.  Economic
 Political
 Social & Cultural
 Environmental
Scope of Globalization?

8. Major increases
 in worldwide trade &
Exchanges
 in an increasingly open, integrated,
and borderless international
economy.
Economic Globalization

9. 1. Trade
2. FDI
3. Mergers & Acquisition
4. Transfer of money
Barometers of Economic Globalization

10. 1. Technological Advances
2. Trade liberalization & Economic
liberalization
3. Competitive Environment
4. Global agreement on ideology
5. Cultural Developments
Sources of Globalization

11.  Technological Advances have
significantly lowered the costs of

Transportation,

Communication, and

dramatically lowered the costs of data
processing and information storage and
retrieval.
Technological Advances

12.  Trade liberalization & Economic
liberalization
 have led to reduced trade protection and to
a more liberal world trading system. As a
result,

there have been significant reductions
 in tariffs and other barriers to trade in goods and
services.
Trade & Economic Liberalization

13.  Organizations have a wider reach, due to
various reasons, and can choose among
many nations for their

sources of materials,

production facilities, and

markets,
 quickly adjusting to changing market conditions.
Competitive Environment

14.  There is a convergence of beliefs in the
value of
 a market economy and a free trade
system.
 A major aspect of this convergence of
beliefs is
 the attempt of the former socialist states to
make a transition to a market economy.
Global Agreement on Ideology

15.  With a globalized and homogenized
media,
 There is widespread use of the English
language for global communication.
Cultural Developments

16.  Ease of International Market Entry
 Emergence of new customer markets
 Standardized Products
 Standardized communication
 Lower production costs, cheaper material,
outsourcing, leading to reduced prices and
increased customer value
Implications of Globalization
on International Marketing

17. Globalization Index

20. Thank You
Instructor: Dr. IRFAN