The twentieth century witnessed a revolutionary global policy aiming to turn the entire globe into a single market. Economic globalisation includes technology, industries, competition and corporations. The Mexican food company Bimbo responded to global competition by defending their deep penetrating distribution system that reached far-off rural areas with 420,000 deliveries daily through 350,000 stores, thus creating a huge barrier to the entry of PepsiCo, whose reach was largely big supermarkets in urban areas. ii. In simple words, globalization means the spreading of a business, culture, or any technology on an international level. The Chinese company TCL not only rapidly caught up with global cellular phone companies such as Nokia and Motorola, but also emerged as a significant player in a number of consumer electronics. Once the two nations congregate, they flourish by sharing their beliefs, thoughts, opinions, customs, and behaviors. However, countries are consistently evolving innovative marketing barriers that are WTO compatible. It offers a big prospect to the firms who wish to deal with the global market. Countries with advanced technologies are best placed to innovate further. Disclaimer Copyright, Share Your Knowledge These essays will also guide you to learn about the definition, objectives, elements, impact, steps, solutions, advantages and disadvantages of globalisation. The situation leads to the domination of economically rich countries over emerging countries and the increase of disparity. Globalisation affects the nature of business ethics and social obligations. International Business Challenges in a Globalised World Introduction The globalisation of business and commerce has become an increasingly significant reality worldwide: in 2000, the global trade in goods and services reached 25% of world GDP (Govidarajan & Gupta 2000), while in terms of manufactured goods, international trade has multiplied by more than 100 times since 1955 (Schifferes … The breakthroughs in the means of transport and communication technology in the last few decades have also made international communication, transport, and travel much cheaper, faster, and more frequent. Country memberships in international organizations, personal and financial contributions to UN peacekeeping missions, ratification of selected multilateral treaties, and amounts of government transfer payments and receipts. Introduction to Globalization and International Business 2. Such strategy may include cooperating through a joint venture with the MNE, selling off to the MNE, or become a supplier or service provider to the MNE. Under globalization, those who possess capital and skills are better off, but the middle class is reported to get more and more squeezed. Technological strides in telecommunication, transport, and travel have created new consumer segments in the isolated places of the world. The paper deals with various current state affairs of economic globalisation in the post-modern business world. However, the exceptions to free market systems are the autocratic countries, such as North Korea and Cuba. It is often decried as just another term for Americanization and US global imperialism. The riots in Seattle in December 1999 during the WTO ministerial and subsequent protests, sometimes violent, were interpreted as defeat of free trade and globalization. The Indian youth is definitely empowered in a big way. For instance, faced with MNC competition, Kwality, a dominant player in the Indian ice-­cream market, sold its manufacturing assets and brand to Unilever. This has opened up business opportunities for transnational corporations to expand their operations by way of ownership on one hand and benefited developing countries from increased flow of capital and other forms of finance on the other. Changes in technology, communication, and transportation are opening up borders and markets at increasing rates. After reading this essay you will learn about: 1. ...Introduction Globalisation is a complex contemporary issue posing challenges for international businesses and it is essential for them to respond to the challenges appropriately in order to succeed (Dunning, 1999). As a positive effect, India is witnessing the speedy completion of Metro projects across the country. 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