GLOBALISATION PRESENTATION

PRESENTAtion BY ROTARU, bARALDI, dADZIE AND lOCCHE

GLOBALISATION

start

Index

what is globalisation?

globalisation in a time of trANSITION

GLOBALISATION: ITS GOOD, BAD AND UGLY SIDES

WHAT IS GLOCALISATION?

MCDONALD'S GLOCALISATION-BURGER WITHOUT BEEF?

GLOBALISATION

Reasons for globalization:

• Improved travel and communications;
• Fewer barriers to international purchases;

The world is becoming one big market instead of many separate, with the global sharing of products and services.

Economic benefits: Large-scale production has reduced costs, allowing businesses to earn more, giving consumers more choices at lower prices.

World Trade Organization promote free movement, facilitating trade collaboration between countries.

Exploitation of resources in countries with cheaper labour: Companies, especially multinationals, expand into markets such as India, China and Brazil to leverage economic materials

GLOBALISATION

ANTI-GLOBALISATION

Key points on the critique of globalization:

• Environmentalism;
• Third World debt;

• Animal rights;

• Child labour;

• Anarchism;
• Anti-capitalism;

• Against Transnational Corporations.

The "KOF Index of Globalisation" quantifies how economically, socially and politically connected countries are. Technology, in particular Information Technology (IT), has played a key role in increasing globalization since 1980.

The "CIVETS" - Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa - is a group of nations with growing economies, but some developing countries, especially in Africa, remain among the least developed.

GLOBALISATION

Despite a significant financial crisis, the integration of the global economy has continued; Causes:

• increase foreign direct investment;
• trade;

GLOBALISATION IN TRANSITION

Hyperglobalization --> reduced the gap between emerging and high-income nations --> great convergence

Globalization is not considered irreversible because there are threats:

• external (such as global imbalances);
• internal (such as high unemployment, low growth, and rising inequality);

GLOBALISATION

BAD SIDE:

GOOD SIDE:

• price and profits swings due to intensification of competition ➝destruction of business and products;

• unstable and unpredictable demand and business opportunities;

• little / no pricing power;
• constant pressure ➝ new competitors undermine their profitability;

• tight credit (creditor tighten credit) ➝ depression of total demand.

• open markets creating efficiencies and opportunities;

• people in business can communicate efficiently with partners, suppliers and customers;

• local producers can sell in distant markets;

• money flows easily across local and national boundaries;

• virtuous cycle of income and employment growth.

UGLY SIDE:

• simultaneous currency devaluations for nations (to escape the vicious cycle);

• nations raise trade barriers ➝ trade wars

GLOCALISATION

WHAT IS GLOCALISATION?

The term "glocalisation" combhines globalisation and localisation and it is used to describe products or services distributed globally, but adapted to local preferences.

GLOCALISATION

mCDONALD'S GLOCALISATION-BURGERS WITHOUT BEEF?

McDonald's entered the Indian market in 1996, expanding across the country. McDonald's adapted its menu in India by excluding beef and pork products to cater to the vegetarian population and to show a unique approach tailored to local cultural and religious preferences. . McDonald's listens to what people in each area like and changes its food to fit that. They mix ideas from all over the world and make them work for the local tastes.