globalistion2 track1
TRANSCRIPT
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Impact of globalization on Indian
entrepreneurs
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` The term globalization means integration of economies
and societies through cross country flows of information,
ideas, technologies, goods, services, capital, finance and
people
` In fact, some people fear cultural and social integration
even more than economic integration. Limiting ourselves to
economic integration, one can see this happen through the
three channels of (a) trade in goods and services, (b)
movement of capital and (c) flow of finance` Globalization indeed brings in new technology and
opposition to globalization is not tantamount to becoming
technologically isolated from the rest of the world
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Globalization has a significant impact on
entrepreneurial enterprises in many ways.
` Technology
` Consumers` Export & import
` Education
` Tourism
` Privatization
` Employment
` Expansion
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` Network innovatively across the value
chain
` Innovation could be in any of the
areas.
` Re-engineering products or services.
` Creating new products or services.
` New processes to improve
productivity.` Developing new marketing techniques
to expand sales.
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` Customers have easy access to information on Brands
& services therefore they have become more aware.
` Tastes of customers are converging .
` Whole world has become 'one single market' .` Customers have become more discerning & assertive .
` They want better & better products & Services, at
lesser & lesser cost .
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` Indias Export and Import in the year 2001-02 wasto the extent of 32,572 and 38,362 million
respectively.
` Many Indian companies have started becoming
respectable players in the International scene.
` Agriculture exports account for about 13 to 18% of
total annual of annual export of the country.
` In 2000-01 Agricultural products valued at more
than US $ 6million were exported from the country
23% of which was contributed by the marine
products alone.
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` The international transactions in services are defined
as the economic output of intangible commodities
that may be produced, transferred and consumed at
the same time.` Traditionally services are viewed as domestic
activities due to direct contact between producer and
consumer and government monopoly in
infrastructure sector.` The ascent of information and communication
technology has given rise to e-commerce, e-banking,
e-learning, e-medicine and e-governance.
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So, it is argued that government finds it increasingly
difficult to cope up with technology-driven activities.
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` India is emerging as preferred
global destination for off shore
software development and
remote business processing.
` About 258 of the Fortune 500
companies source some of their
IT requirements from India.
` Worldwide 38 IT Companies
have level 5 SEI-CMM
Certification of which 19 (50%)
are Indian.
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India has produced some Islands of excellence.
` Infosys / Wipro / TCS
` Ranbaxy / Dr. Reddy's Lab.
` Bharti Televentures` Reliance Industries Ltd. / Reliance Petroleum Ltd.
` Sundaram Fasteners / Sundaram Clayton
` Hindustan Lever Ltd. / Marico / Tata Tea
` A.V. Birla Group / Hindalco
` Zee Telefilms.
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` The pressure of globalization is havinga major impact on SMEs of the Indian
tourism industry.
` Globally acting suppliers, decreasing
transportation costs and emerging newdestinations have put pressure on the
Indian SMEs in traditional
destinations.
` They are economically very dependenton tourism; a need for effective policy
support arises.
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` The rapid growth in world trade, foreign direct
investment, and cross-border financial flows over the
past decade has been the main manifestation of the
increasing "globalization" of the world economy.
` Technological developments have magnified the
effects of this liberalization by reducing the costs of
transportation and communications, hence
expanding the scope and volume of goods and
services that are internationally tradeable.
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The gains from globalization can be analyzed in the
context of the three types of channels of economic
globalization identified earlier.
TRADE IN GOODS & SERVICES
` International trade leads to allocation of resources
that is consistent with comparative advantage.
` This results in specialization which enhances
productivity.
` It is accepted that international trade, in general, is
beneficial and that restrictive trade practices impede
growth.
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MOVEMENT OF CAPITAL
` Capital flows across countries have played an
important role in enhancing the production
base.
` Capital flows can take either the form of
foreign direct investment or portfolio
investment.
`
For developing countries the preferredalternative is foreign direct investment.
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FINANCIAL FLOWS
`
The rapid development of thecapital market has been one of the
important features of the current
process of globalization.
`
The gross turnover in foreignexchange markets has been
extremely large.
` It is estimated that the gross
turnover is around $ 1.5 trillionper day worldwide
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` Globalisation has intensified
interdependence and competition
between economies in the world
market.` This is reflected in Interdependence
in regard to trading in goods and
services and in movement of capital.
` As a result domestic economicdevelopments are not determined
entirely by domestic policies and
market conditions.
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` Rather, they are influenced by both domestic and
international policies and economic conditions.
` It is thus clear that a globalising economy, while
formulating and evaluating its domestic policy
cannot afford to ignore the possible actions and
reactions of policies and developments in the rest of
the world.
` This constrained the policy option available to the
government which implies loss of policy autonomy to
some extent, in decision-making at the national level.
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` Globalization provides a great
opportunity for entrepreneurial
ventures to expand their business
internationally.` Entrepreneurial enterprises are
able to confront the challenges
posed by globalization and
economic liberalization, to improvetheir competitiveness in the global
market, and better serve the global
consumers.
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