Scribd
Upload
89 views

International Marketing: Globalization in India, Opportunities, Constraints and Initiatives

The document discusses several topics related to globalization in India including: 1. India's strengths as a hub for the global economy such as its multi-cultural society and large domestic market. 2. Potential undesirable effects of globalization such as job outsourcing, increased pollution, and financial crises. 3. Major initiatives taken by Indian companies to globalize including acquisitions and expansion overseas.

Uploaded by

Pooja Shah
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
89 views

International Marketing: Globalization in India, Opportunities, Constraints and Initiatives

The document discusses several topics related to globalization in India including: 1. India's strengths as a hub for the global economy such as its multi-cultural society and large domestic market. 2. Potential undesirable effects of globalization such as job outsourcing, increased pollution, and financial crises. 3. Major initiatives taken by Indian companies to globalize including acquisitions and expansion overseas.

Uploaded by

Pooja Shah
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 39

International Marketing

Globalization in India, Opportunities, Constraints and Initiatives


Module7

India A hub for the global economy


Multi cultural, multi ethnic society with a vibrant democracy and free press Willingness to assimilate and work with anybody Egs TATAs, ABG, Reliance Eg Heymath

India A hub for the global economy


Further Need to open economy
India is still not so open to foreign goods and services, labor, or knowledge as it should be. India has a dubious record of instigating the maximum number of anti dumping cases under WTO between 1995-2003.

Growing Confidence to compete globally


2 factors

First, IT services companies showed the way for profits Second, Liberalization forced competition on the rest.

Globalization In India Post Liberalization


Economy opened in the early nineties

Major initiatives included scrapping of the industrial licensing regime, reduction in the areas reserved for PSUs, amendment of the monopolies and restrictive trade practices act, start of the privatization program, restriction in tariffs and changeover to market determined exchange rates
Liberalization marked an important point in the business history. The results are evident. India is among the best emerging economies and among top fastest growing economies in the world

Indias Strengths
Availability of Skilled labour The fast improving infrastructure A huge domestic market OEMs and agriculture based producers and service providers that can provide product and services at the lowest cost in the world. Evolved R&D capabilities A highly competitive and well developed vendor base to supply components and raw material costs effectively Demographics of the population

Indias Strengths
There are numerous reports publishes highlighting the strength of India and India Inc. The corporate initiatives taken in India are:
Corporate Governance of high order including greater corporate social responsibility. Quality Management Global Brand Building Better Cost Management Introduction of major IT synergy in the sector Insertion of R&D activities in manufacturing Increasing productivity Competitive Pricing

Strategies for sustainable competitive advantage


Indias competitive advantage in IT, automobile, ancillary and pharmaceuticals sector especially for generic drugs is emerging rapidly in the global markets other than its traditional sectors like textiles, agriculture products, jewelry, and gems. However to sustain competitive advantage following steps are essential
Adopting existing industrial best practices Industry low in skill and technological components and high on labour contents, natural resources and raw material must strive to produce at lowest possible cost.

Strategies for sustainable competitive advantage


Sustained and cumulative investment in machines, development of industrial excellence and knowledge resources, use of information and communication technology and continuous process improvement will help the firm to sustain the competitive edge longer. Creation of new advantages and continuous improvements within the existing best practices Local factor conditions such as local demand, existence of supporting and related industries, infrastructure and governance conditions are very important. Firms need to employ and retain managers who have a mindset capable of
Identifying and making the most efficient use of resources irrespective of their location. Managing conflicts Managing Change Demonstrating patience and humility

Potential for made in India


McKinsey and CII released a report Made in India: The next Big Manufacturing export story Global trend to manufacture and source products is likely to gain steam over the next one decade and India has an advantageous position. Low cost countries generally have wages which are one third of US. India has several advantages in skill intensive industries such as auto component and pharmaceuticals , where the next set of offshoring opportunities will arise.

Potential for made in India


Apart from low wages advantages include engineering skills (process, product and capital engg.), established raw material bases, a mature supply base and a growing domestic demand. It will require that Indian players adopt a global mindset, carefully select product segments and rapidly develop India among the top sourcing hubs. India to fully capture the potential from its manufacturing exports, needs to get broad based across sectors and across companies within each sector.

Major Globalization Initiatives from Indian companies

Major Globalization Initiatives from Indian companies

Major Globalization Initiatives from Indian companies

Major Globalization Initiatives from Indian companies

Major Globalization Initiatives from Indian companies

Major Globalization Initiatives from Indian companies.. Acquisitions

Major Globalization Initiatives from Indian companies

Major Globalization Initiatives from Indian companies

Major Globalization Initiatives from Indian companies

Major Globalization Initiatives from Indian companies

Major Globalization Initiatives from Indian companies

Major Globalization Initiatives from Indian companies

Major Globalization Initiatives from Indian companies

WTO
WTO was formed on Jan 1, 1995. It took over GATT India is one of the founder members of WTO

WTO has 153 member nations representing 97% of worlds population.


Headquartered at Geneva, Switzerland.

Features of WTO
It is an international organization to promote multilateral trade. It promotes free trade by removing tariff and non tariff barriers in international trade.

It includes trade in goods, trade in services, protection of intellectual property rights, foreign investment etc. All the WTO members have equal voting rights.

Objectives
To implement the new world trade agreements.

To promote multilateral trade among many nations.


To promote free trade by abolishing tariffs and non tariff barriers. To expand and utilize world resources to the most optimum level. To improve standard of living of the global population. To speed up economic development.

Functions
Implementing WTO agreements administering the international trade. and Reviewing trade related economic policies of member countries.

Acting as forum of trade liberalization.


Cooperating with world bank and IMF and its associates for establishing coordination in global trade policy making. Settling trade relating disputes among member nations of its dispute settlement body(DSB)

Agreements
1. Trade in Agriculture

2. Trade in Textile and Clothing


3. Trade Related Intellectual Property Rights (TRIPs) 4. Trade Related Investment Measures (TRIMs) 5. General Agreement on Trade and Services (GATS) 6. Disputes Settlement

7. Agreement of export subsidies


8. Anti Dumping agreements

Benefits for India


Increases in foreign trade Increase in agriculture exports Increase in inflow of foreign investment.

Improvement in services
Benefits for clothing and textile industry Restricts Dumping Promotion to research on patents

Effects of WTO in India


Disadvantage to agriculture sector
Reduction in subsidy Import of food grains

Loss to domestic industries

Progress In India
Reduction in tariff and non tariff barriers Amendment in patents act Sui-generis system

Copyright, trademark and industrial designs

Areas of Concern

Undesirable effects of Globalization


In order to cut down costs, many firms in developed nations have outsourced their manufacturing and white-collar jobs to Third-World countries like India and China, where the cost of labor is low. It is generally said that Globalization has led to an increase in activities such as child labor. Critics opine that globalization has resulted in a fiercely-competitive global market, and unethical practices in business is a by-product of this. People in developing nations - where most of the industries have been set up, often complain that their cities have been reduced to garbage-dumps where all the industrial waste is accumulated and pollution levels are skyhigh. Fast food chains like McDonalds and KFC are spreading fast in the developing world. People are consuming more junk food which has an adverse impact on their health.

Undesirable effects of Globalization


Globalization has been criticized for opening floodgates for restaurants and eateries which are insensitive to the religious beliefs of the host nation. While the rich are getting richer, the poor are struggling for a square meal. Ideally, globalization should have resulted in creation of wealth and prosperity, but money is not distributed equally.

Environmental degradation is an issue and it has to be accepted that globalization is one of the most important factors that has aggravated the situation.
The amount of raw materials needed to run industries and factories is taking a toll on the natural reserves of planet earth, and pollution has severely impacted the quality of air that we need so very much for our survival.

Undesirable effects of Globalization


The global economy has suffered several financial crises over the last decade. Plunging asset prices, exchange market volatility, a crisis in emerging markets and the collapse of several major financial institutions all underscore the major weaknesses of our system. Another risk is that of marginalization. While some countries are harnessing the forces of globalization, others clearly are not. Indeed, countries that are unable to participate in the expansion of world run the risk of being left behind by the global economy.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy