FIVE MAJOR DRIVERS OF GLOBALIZATION SOFTWARE

FIVE MAJOR DRIVERS OF GLOBALIZATION SOFTWARE

Besides, falling communication costs allow information move quickly and inexpensively, For example, American & European companies, in recent years, have been depended on Indian companies for the software products & the services through their business process outsourcing (BPO). Advanced communication technology, such as the internet allowed the customer to get information for new goods and services easily. Advanced information technology has transformed our economic life as well as in the businesses sector. The Availability of advanced technology & competent human resources in some countries acts like pulling factors for business firms from other countries. Technology is the principal drivers of international business. Business firms prefer to enter the politically stable countries &ДЄre restrained from locating their own business operations in politically Means that continuation of the same policies of the Government for a quite long Through its global operations than through the domestic operations. Is a scope for a higher rate of the profits. Higher rate of profits, business firms search for foreign markets where there When the domestic markets donвЂ™t promise a The Smaller companies expand internationally for survival while the larger companies expand to increase their market share.В For example, Coca Cola has bottling plants almost all over the world.Д«usiness is to achieve profits. Some companiesВ would like to enhance their market share in the global market by expanding & intensifying their operations in various foreign countries. Car manufacturers like Toyota, Suzuki, Mercedes, etc. Products and services cannot afford to ignore the opportunities provided by theseД®merging markets. Unlimited potential and scope for business. Emerging markets provide an unexplored marketplace with In order to do business internationally, a company must have a good product, the right strategy, and an appetite to take a risk at the global marketplace.Д¬ountries, developing countries are growing at a healthy pace, thus reducing International business has become easier since the advent of the internet and the emergence of e-business. Similarly, Toyota of Japan has a large export market. In such cases, these companies are forced to sell their extra production in foreign developed countries.В For example, Nokia is an international company based in Finland whose production capabilities were very large compared to the population of Finland. Some of the domestic companies expand their production capacities more than the demand for the product in the domestic market. For example, ITC Indian cigarette major captured the European market. This is all about important and key driving forces and factors of Globalization.When the size of the home market is limited either due to the smaller size of the population or due to the lower purchasing power of all people or both, the companies internationalize their operations.В Similarly, A company, which is mature in its domestic market, is driven to sell in more than one country because the sales volume achieved in its own domestic market is not large enough to fully capture the manufacturing economies of scale. Launch and use 2G network (GSM) and increase in no. Number of Internet users rises to 300 million by 2000 and 500 million in 2005 Invention of www (World Wide Web) by Tim Berners Lee 1989 Increased use of Jet Engines in air transport1957-72Д¬ommercialization of Integrated circuits in 1961ДЇirst single chip microprocessor Intel 4004in 1971 Recent technological developments including but not limited to computer, mobile phones, internet, aviation, wireless communication and other innovations helped to bring the world closer and together.Д®xpansion of Plastics and fibre products in 1940Дiscovery of large oil fields in middle east (Saudi Arabia) in 1948 Yom Kippur War helps to trigger oil price hike 1973Д®U enlargement to 9 members in 1973 and then to 12Дissolution of soviet union to form 13 independent states in 1991Д®U enlargement to 27 members 3. Start of a European Recovery Programme, the Marshall Plan in 1948-57Д¬hina Becomes a socialist republic in 1949 Political driving forces plays crucial role in the globalization or internationalization of businesses. Rise of Asian newly developed or industrialised countriesДЄdoption of Euro by 11 european countries in 1999Д¬hina Joins WTO in 2001 2. Major currencies become convertible in 1958 to 64Дevelopment of EuroDollar Market (International Liquidity)Д®limination of last customs duties within EC in 1968 One of the main driving forces of globalization is economic development.Д®stablishment of a new monetary system, the Bretton woods system in 1940Д®stablishment of CMEA by Soviet Union in 1949-91 Shiva Ramu the major drivers or factors of Globalization are вЂ“ 1.

Five major drivers of globalization