CHALLEN G E S A N D

OPPORTU N I T IE S O F
GL O BA L IS AT I O N M A R K E T
UNDER THE GUIDANCE OF :
DR.DEVENDRA KUMAR PANDEY
WHAT IS GLOBALISATION?
• GLOBALIZATION IS THE PROCESS BY WHICH IDEAS, KNOWLEDGE,
INFORMATION,  GOODS AND SERVICES SPREAD AROUND THE WORLD.
IN BUSINESS, THE TERM IS USED IN AN ECONOMIC CONTEXT TO
DESCRIBE INTEGRATED ECONOMIES MARKED BY FREE TRADE, THE
FREE FLOW OF CAPITAL AMONG COUNTRIES AND EASY ACCESS TO
FOREIGN RESOURCES, INCLUDING
LABOR MARKETS, TO MAXIMIZE RETURNS AND BENEFIT FOR THE COM
MON GOOD.
Types of
Globalisation
 THERE ARE THREE TYPES OF GLOBALIZATION.
• ECONOMIC GLOBALIZATION. HERE, THE FOCUS IS ON THE INTEGRATION OF INTERNATIONAL
FINANCIAL MARKETS AND THE COORDINATION OF FINANCIAL EXCHANGE. FREE TRADE
AGREEMENTS, SUCH THE NORTH AMERICAN FREE TRADE AGREEMENT AND THE TRANS-PACIFIC
PARTNERSHIP ARE EXAMPLES OF ECONOMIC GLOBALIZATION.
MULTINATIONAL CORPORATIONS, WHICH OPERATE IN TWO OR MORE COUNTRIES, PLAY A LARGE
ROLE IN ECONOMIC GLOBALIZATION.

• POLITICAL GLOBALIZATION. THIS TYPE COVERS THE NATIONAL POLICIES THAT BRING
COUNTRIES TOGETHER POLITICALLY, ECONOMICALLY AND CULTURALLY. ORGANIZATIONS SUCH
AS NATO AND THE UN ARE PART OF THE POLITICAL GLOBALIZATION EFFORT.

• CULTURAL GLOBALIZATION. THIS ASPECT OF GLOBALIZATION FOCUSES IN A LARGE PART ON

THE TECHNOLOGICAL AND SOCIETAL FACTORS THAT ARE CAUSING CULTURES TO CONVERGE.
THESE INCLUDE INCREASED EASE OF COMMUNICATION, THE PERVASIVENESS OF
SOCIAL MEDIA AND ACCESS TO FASTER AND BETTER TRANSPORTATION.
OPPORTUNITIES OF GLOBALIZATION
• 1. NEW MARKETS.- ENTERING INTO NEW MARKETS MAY LEAD TO AN INCREASE IN THE NUMBER
OF CUSTOMERS , THEREFORE WILL RESULT IN INCREASE IN SALES REVENUE.

• 2. CHEAPER LABOR.- HIRING CHEAPER WORKERS IN-UNDERDEVELOPED AND DEVELOPING

COUNTRIES WILL ENABLE THE COMPANY TO LOWER THE COST OF PRODUCTION, THEREFORE
WILL RESULT IN HIGHER GROSS PROFITS.

• 3. MORE CHOICES. GLOBALIZATION LEADS TO INCREASED COMPETITION FOR BOTH LOCAL AND
INTERNATIONAL BUSINESSES. OFFERING MORE CHOICES TO CUSTOMERS WILL INCREASE
CUSTOMER SATISFACTION, THEREFORE WILL RESULT IN HIGHER CUSTOMER LOYALTY AND
REPEATED PURCHASES.
• 4. HIGHER EFFICIENCY.- BECAUSE OF STRONG INTERNATIONAL
COMPETITION, BUSINESSES WILL HAVE TO START OPERATING MORE
EFFICIENTLY.

• 5. LOWER PRICES. - THANKS TO OPERATING ON LARGER SCALE, THE

COMPANY CAN ACHIEVER EDUCTION IN COSTS DUE TO ECONOMIES OF
SCALE . HIGHER PRICE COMPETITIVENESS MAY ENABLE THE BUSINESS TO
LOWER PRICES OF GOODS AND SERVICES, THEREFORE ENCOURAGE-
SALES.

• 6. MULTICULTURALISM. - GLOBALIZATION LEADS TO MULTICULTURALISM

WHICH PROMOTES MUTUAL UNDERSTANDING BETWEEN PEOPLE FROM
DIFFERENT COUNTRIES. THEREFORE, AS A RESULT ,WE WILL END UP IN A
MORE PEACEFUL WORLD.
 WHAT ARE THE CHALLENGES OF
GLOBALIZATION?
• WORKER EXPLOITATION - MANY COMPANIES IN DEVELOPED COUNTRIES HAVE OUTSOURCED THEIR PRODUCTION AND SOME OF THEIR
SERVICES TO DEVELOPING COUNTRIES. WHILE THIS HAS GENERALLY BEEN GOOD FOR LOCAL ECONOMIES IN DEVELOPING COUNTRIES,
LOCAL WORKERS ARE STILL EXPOSED TO HIGH DEGREES OF EXPLOITATION.

• JOB LOSS - ONE OF THE MOST DEBATED NEGATIVE EFFECTS OF GLOBALISATION IS THE LOSS OF JOBS. THIS IS PARTICULARLY THE CASE
IN DEVELOPED COUNTRIES, SUCH AS THE US FROM WHERE MANY SERVICES AND UNSKILLED LABOR HAVE BEEN OUTSOURCED TO
DEVELOPING COUNTRIES.MANY LOCALS HAVE LOST THEIR JOBS OR BEEN FORCED TO ACCEPT LESSER WAGES AND POORER WORKING
CONDITIONS AS A RESULT. THOUGH IT IS THE JOB OF GOVERNMENTS TO PROTECT THE LOCAL WORKFORCE AND CREATE FAVOURABLE
BUSINESS CONDITIONS FOR COMPANIES, YOU WILL STILL NEED TO ASSESS HOW YOU WANT YOUR BUSINESS TO WORK AROUND THIS
CHALLENGE.

• HIGH INVESTMENT - GLOBALISATION AND INTERNATIONAL EXPANSION ARE GENERALLY VERY EXPENSIVE ENDEAVOURS. THIS IS ONE
OF THE MOST DETERRING DISADVANTAGES OF GLOBALISATION . IT REQUIRES BUSINESSES TO INVEST A LOT OF THEIR RESOURCES INTO
DESIGNING AND IMPLEMENTING AN EFFECTIVE GLOBALISATION STRATEGY.SETTING UP A COMPANY OR PRESENCE ELSE WHERE ,PAYING
TAXES, HIRING, SIGNING CONTRACTS WITH NEW PARTNERS , SCOURING THE CUSTOMER BASE - ALL THESE THINGS REQUIRE
MOUNTAINS OF RESEARCH, CAPITAL, AND TIME . NOT ALL COMPANIES WILL FEEL COMFORTABLE DOING THIS, ESPECIALLY SMALLER
BUSINESSES OR THOSE JUST SCALING UP GLOBALLY.
• ENVIRONMENTAL DEGRADATION- SADLY, THE ENVIRONMENT ALSO SUFFERS AS A NEGATIVE EFFECT OF GLOBALIZATION. AS GREAT
AS INCREASED FLOW OF GOODS AND KNOWLEDGE ARE FOR PEOPLE, THE UNDERLYING BUSINESS ACTIVITIES ADVERSELY AFFECT
THE ENVIRONMENT . GLOBAL TRANSPORTATION NETWORKS AND INCREASED MARKET DEMAND MEANS MORE USE OF FUELS ,
CONTRIBUTING TO HIGHER EXERTION OF GREENHOUSE GASES. PLANES, SHIPS, AND TRUCKS TRANSPORTING GOODS ALL OVER THE
WORLD ARE HARMFUL FOR THE ATMOSPHERE AND AFFECT LOCAL ECOSYSTEMS.

• TAXES ACROSS BORDERS - TAXES CAN BE A NIGHTMARE BOTH FOR EMPLOYEES AND FOR BUSINESSES. DIFFERENT COUNTRIES OR
STATES HAVE THEIR OWN TAX AUTHORITIES AND UNIQUE REGULATIONS ON WHAT TAXES NEED TO BE PAID, HOW, TO WHOM, AND
WHEN.

• LEGAL COMPLIANCE FOR EMPLOYERS - GLOBAL EMPLOYERS ALSO NEED TO CONSIDER HOW TO EMPLOY PEOPLE LEGALLY IN ALL
THE COUNTRIES WHERE THEY ARE BASED. ONE OF THE DISADVANTAGES OF GLOBALISATION IS THAT ALL COUNTRIES HAVE THEIR
OWN LABOUR LAW. THIS COVERS THINGS LIKE WORKING HOURS, TYPES AND AMOUNT OF PAID LEAVE, TERMINATION RIGHTS,
INTELLECTUAL PROPERTY RIGHTS, SALARIES, BENEFITS , AND SOCIAL SECURITY. YOU WILL NEED TO BE AWARE OF THE LABOUR
CODE OF EACH JURISDICTION WHERE YOUR EMPLOYEES ARE BASED SO YOU CAN EMPLOY THEM COMPLIANTLY.
HOW DOES GLOBALIZATION AFFECT YOUR LIFE ASA
BUSINESS?
ALL BUSINESSES CAN USE GLOBALISATION TO THEIR ADVANTAGE . WHAT YOU NEED IS THE RIGHT APPROACH.RUNNING A GLOBAL
BUSINESS WITH EMPLOYEES ALLOVER THE WORLD CAN BE EXTREMELY REWARDING, BUT ALSO REQUIRES FORESIGHT AND
APPROPRIATE PROCESSES IN PLACE TO MAKE SURE YOU STAY COMPLIANT. AS ALWAYS , COMPLIANCE IS KEY. WHEN EXPANDING
GLOBALLY, YOU MAY NEED TO CONSIDER:

• 1. HAVING A LEGAL PRESENCE IN THE COUNTRIES YOU ARE OPERATING IN / WHERE YOUR EMPLOYEES ARE BASED
• 2. PAYING CORPORATE TAXES THE RIGHT WAY, ON TIME , AND TO THE RIGHT AUTHORITY
• 3. WHO YOU HIRE (LOOK FOR THE RIGHT TRAITS AND WATCH OUT FOR YOUR OWN HIRING BIAS)
• 4. COMPLIANT EMPLOYMENT CONTRACTS AND PAYROLLS
• 5. OFFERING PROGRESSIVE BENEFITS
• 6. MANAGING INTELLECTUAL PROPERTY RIGHTS COMPLIANTLY
• 7. CREATING A SMOOTH, STANDARDISED ON BOARDING PROCESS
• 8. BUILDING A SOLID COMMUNICATION AND COLLABORATION STRATEGY ACROSS YOUR TEAMS
• 9. CREATING A SUSTAINABLE, INCLUSIVE, AND SUPPORTIVE WORKPLACE CULTURE
OUR TEAM:
• GAURAV SINGH PARMAR
• SAURABI GURJAR
• YATINDRA SAVITA
• PIYUSH SHARMA