International-Business-Dr-R-Chandran-E-book

GLOBALISATION TRENDS
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International Business- Dr. R. Chandran
Globalisation can be defined in several different ways depending on
the level we choose to focus on. The philosophy is “the whole world is my
market; wherever the opportunity arises I will tap it irrespective of location,
standard of economy, ethnic relations and all other parameters.” “Cross
border customers are my neighbours; I will be close to them at any time” – a
slogan of a global manager. “Globalisation is a mindset rather than physical
pharmaceutical giant in India.
At a worldwide level globalisation refers to the growing economic
interdependence among countries, which is reflected in the increasing crossborder
flow of goods, services, capital and know-how. Clear evidence of this
is offered by the following trends:
Between 1989 and 200, cross-border trade in goods and services grew
at an average annual rate of 6.4 percent. This is almost twice as fast as the
average annual growth rate of 3.2 percent in the world’s GDP during the
same period.
From 1980 to 2000 foreign direct investment grew from 4.8 percent to
10 percent of the world’s GDP. Destinations for flow of funds have changed
drastically. It has increased to 18% till the first half of 2007.
In 1970 cross-border transactions in bonds and equities, as a ratio of
GDP, stood at under 5 percent in the US, Germany and Japan. By 2001, the
respective figures for these countries had soared to 152 percent, 197 percent
and 83 percent respectively. After 2001 every year it witnesses more than
15% in all those three countries.
At the level of a specific country, globalisation refers to the ability of
the country to expand its trade and aggressively dominate in other parts of
the world; by motivating its entrepreneurs by investing, manufacturing and
marketing.
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