Globalization

Recent years, the globalization become one of the most controversial subjects. It changes millions people's lives. The economics have been encourages by the globalization. People who come different coutries can communication very well.


Definition:
"Globalization is the tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen. "Margaret Rouse 2007
"Economic globalisation is the international integraton of goods, technology, informaton, labour, capital or the process of making this happen."

Four events encourage the globalization:

1. In 1990, the sovient Union collapse.

2. In the mid 1990's, China under the leadership of Deng Xiaoping had carried on the reform and opening up. 

3.After 1998, the Internet developed quickly.

4. After 2000, the India become the world centre.

 

Five forces encourage the globalization:

1. Political: EU and NAFTA preferential trading agreements, openning up economies of communist nations to global competition.

2. Teconological: Internet encourage the small companies to compete globally.

3. Market and Costs: Saturated domestic markets force businesses to move markets.

4. Living standard: Developing countries want to have high living standard.

5. Competitive: Developing countries compete with developed countries.

Good example- Global industries.

1. Apple

There are  11 countries have the apple retail store. Online stores access in 37 countries. Products can be easily purchased through the web and stores. Information about apple can easily find all over the world. Many manifacaries in other countries,such as China, Phillippines.Not restricted to one region, prodution line distrubted all over the world, globally.

2. COCA COLA

The coca-cola industry follow other countries taste and culture, it created many new products, thi strategies can earn more profits.

In India, the coca-cola's market share was in the third, it behind the Pepsi and the local drink Thums-up.

3. Starbucks

The starbucks is the NO.1 coffee brand in the world , it valued about $4 billion. One advantages of the starbucks is gives its customers high quality products and services. Perfect blended coffee,  premium music, friendly staffs and warm atmosphere.

Bad Example

Google in China

why did china banned Google?

1.  The local search engine Baidu which has now more than 80% of the market. 

2. The Chinese government take this action to shield themselves from foreign espionage while people using search engines and the social media networks.

3. Google does not want to be involved in the "government censorship"-restricting people from sites the Chinese government does not want people know. Some information break the China law.

How To Go Global !

Internal Strategies

• company try to sell goods in the other countries. open the oversea markets.
• invest in the oversea markets. Establishing operations in other countries.
• E-Commerce. Consumers can buy the products online.

these  method, the companies can control in their own countries

External Strategies

There are 5 ways  the companies go to other countries to control their global activities.

1. Joint Venture

eg. the US fast food industries cooperate with Turkish private equity business

2. Strategic Alliance

eg. Star Alliance and one world

3. Franchising

two or more companies become a single business

4. Merger

5. Acquisitions