In straightforward Globalization means opening up of national borders for a foreigner to begin their company. With the world market, globalization means integration for developing countries. Globalization is a cross-border economic trade.
Globalization encompasses the following:
Doing or intending to expand, a company internationally.
International inclination of direction culture and organizational structure
Globalization entails following:
Free flow of wisdom, expertise, and technology
Free flow of capital among nations that are different
Free flow among different nations of Human Resource
Increase in Foreign direct investment
Increase in trades and international monetary investments
- The factors which trigger or motivate businesses may be generally broken up into two groups:-
- Pull factor
- Push factor
Most of the push, factors are motives that are reactive
Gain Edge: A significant motivator for international business is the gain edge.
Increase Chances: The tremendous growth potential of many foreign markets is an extremely strong attraction for foreign firms.
- National Market Constraints: National demand constraints
- Drive many businesses to enlarge the marketplace beyond the national border.
- Government Policies and Regulations
- Spin-off gains
- Tactical Vision: Business desires to get the tactical advantages of internationalization.
Authorities policies and procedures because some countries are not prepared to open their boundaries for foreign firms
Those which are immune to change their practices that are already acquired and integrate new one
- Deficiency of Expertise
- Trade barriers
- Growing competitiveness and sophistication for house businesses
Variables easing Globalization are:
- Low cost of labour
- Big and growing markets that are local
- Raising Entrepreneurship nature
- Adaptability to latest technology
Essential conditions for Globalization:
- Company independence
- Government support
Inclination: A worldwide Inclination on the part of the business firms and globalization strategies that are appropriate arecrucial for globalization
Effects of Globalization:
- The foreign currency reserves of government increases
- Exports have grown and become competitive
- Brings in latest technologies
- The lifestyle alters.
- Knowledge increases
- Increase in market