A presentation on
GLOBALIZATION
By Shreyashi Chandra, Chaitanya Goyal, Sukriti Sethi, Saanvi
Ranjan and Shaurya Aggarwal
Table of contents
Meaning and History of Interlinking production across
01 Globalization 02 countries
Foreign Trade Factors enabling
03 04 Globalization
05 Fair Globalization 06 Parameters of
Globalization
07 Impact of Globalization 08 Case Study : NIKE
Acknowledgements
We, as a group, would like to express our gratitude to
those who played a significant role in the completion of
our project on globalization.
First and foremost, we extend our sincere thanks to
Vatika Mam, our dedicated economics teacher, for her
invaluable guidance and expertise in helping us
comprehend the intricate concepts of globalization. Her
passion for teaching has left an indelible mark on our
understanding of the subject.
We also acknowledge the contributions of our principal,
Mrs Kamini Bhasin who has played a vital role in our
education, providing us with a strong foundation to
undertake this project.
History
● Ancient Trade Routes: The concept of globalization can be traced back to ancient trade routes such as
the Silk Road, which connected East and West, fostering the exchange of goods, ideas, and technologies.
These early forms of globalization laid the groundwork for intercontinental trade.
● Colonialism and the Age of Exploration: The colonial era and the Age of Exploration from the 15th to
the 17th century expanded globalization. European powers established colonies and trading posts in
various parts of the world, further integrating global economies.
● Industrial Revolution: The 18th and 19th centuries brought about the Industrial Revolution, which
significantly transformed production and transportation. Steam engines, railroads, and telegraph
systems enhanced global connectivity and trade.
This way, Globalization spread driven by advances in
communication technology, particularly the internet and mobile
devices.
The proliferation of trade agreements have further opened up
markets and increased international trade.
Shreyashi Chandra
What is Globalization?
Globalization, a term that has become a ubiquitous
part of modern discourse, represents a dynamic and
intricate process of global interconnectedness and
interdependence across various facets of human
existence. This multifaceted phenomenon
transcends national borders, facilitating the
exchange of goods, services, information, ideas, and
culture among countries and regions worldwide. To
understand globalization fully, it's essential to
consider its historical roots and evolution.
Shreyashi Chandra
SILK ROUTE
Connecting the World
Globalization has fundamentally redefined the landscape of production, intricately
interlinking countries in a web of economic, technological, and social connections. This
phenomenon has ushered in a new era of international trade and commerce, shaping the
way goods and services are produced and delivered.
Cultural and economic globalization have caused countries to
become more connected politically. Countries frequently
cooperate to enact trade agreements. They work together to
open their borders to allow the movement of money and
people needed to keep economic globalization working. This
is how globalization interconnects the world.
Chaitanya Goyal
Interlinking Production Across Countries
The money that is spent on buying assets such as land, building, machines and other equipment is called
investment. An investment made by MNCs is called a foreign investment. MNCs are exerting a strong
influence on production at these distant locations. As a result, production in these widely dispersed
locations is getting interlinked. There are a variety of ways, as mentioned below, in which MNCs are
spreading their production and interacting with local producers in various countries across the globe.
1. By setting up partnerships with local companies
2. By using the local companies for supplies
3. By closely competing with local companies or buying them up
Chaitanya Goyal
Example of linking at global level
Huge organizations and businesses do not rely upon a single country, instead, they take different services
from various nations which helps them to reduce their investment cost and help them grow even more
efficiently. Popular tech leads companies or businesses to extend their services in different nations and
utilize the skills and abilities of different nations to expand their businesses.
For ex- A car manufacturing company prepares its design in the UK but for the manufacturing process and
manufactures the parts of the car in China, then assemble the manufactured parts in America. And after
providing customer service, set up their offices in India and give fewer salaries to Indian employees, as
shown in the below diagram.
Chaitanya Goyal
Foreign Trade and Integration of Markets
Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
Producers can sell their products not only in markets located within the country but can also
compete in markets located in other countries of the world.
Similarly, buyers have the options to choose among various goods beyond domestically produced
goods. Thus, foreign trade results in connecting the markets or integration of markets in different
countries.
Chaitanya Goyal
Advantages of Foreign Trade
Foreign trade plays a central role in the context of globalization. Here are some key points on foreign
trade in the context of globalization:
● Expanded Market Access: Globalization has opened up new markets for businesses around the
world which has allowed MNCs to expand.
● Supply Chain Integration: Companies source raw materials and components from various
countries, taking advantage of cost efficiencies and specialized production capabilities.
● Diversification: Access to international markets has allowed companies to diversify their
customer base. This reduces their reliance on a single market.
● Competition: With globalization, companies face increased competition not only from domestic
rivals but also from international players.
● Policy and Regulation: Trade agreements, tariffs, and regulations can either facilitate or impede
international trade.
● Cultural Exchange: The availability of products and services from different parts of the world
introduces people to new ideas, cuisines, and lifestyles.
Chaitanya Goyal
Factors enabling Globalization
1. Technology
One of the primary factors that has accelerated the
globalization process is rapid technological
advancement. This has allowed for considerably
speedier and more cost-effective distribution of
commodities over great distances.
These advancements enabled India’s IT revolution by
allowing workers to be located in different regions
while yet being integrated into a virtual workplace.
Automation and precise control of production as well
as homogeneity have been made possible thanks to
advanced computing facilities.
Sukriti Sethi
2. Trade Liberalization
Government imposed trade restrictions are known as town barriers. The government can
employ trade barriers to control or enhance international trade, as well as decide what sorts
of goods and how much of each should be imported. Import taxes are an example of a trade
barrier. Liberalization is the process of removing government- imposed trade obstacles or
limitations.
In a developing economy, trade restrictions can help to boost growth and productivity. It can
however, be harmful after a certain level of development. India liberalized its trade in 1991,
allowing companies to freely import and export materials and goods. This was backed up by
organizations like a World Bank.
3. Foreign Investment Policy
As company’s considerable investments in a foreign enterprise are known as foreign direct
investments. The investments could be used to acquire a material source, expand a company’s
territory, or establish an international presence.
Sukriti Sethi
Components of fair globalization
Democratic Labour Rights
01 Governance 03 Protecting workers'
Encouraging rights, fair wages,
participatory and safe working
decision-making conditions.
at all levels.
Social
protection
02 Ensuring social
04 Cultural Diversity
Preserving and
safety nets to promoting cultural
protect vulnerable diversity in a global
populations. context.
Sukriti Sethi
Why is being fair important?
Fair globalization is a concept that seeks to address the challenges and
inequalities associated with the process of globalization, ensuring that its
benefits are distributed equitably among countries and individuals. Globalization
refers to the increased interconnectedness and interdependence of countries and
economies through the exchange of goods, services, capital, information, and
people. While globalization has brought about many positive developments, it
has also been criticized for exacerbating social, economic, and environmental
disparities.
Not everyone has benefited from globalisation. People with education, skill and
wealth have made the best use of the new opportunities. On the other hand,
there are many people who have not shared the benefits.
Fair globalisation would create opportunities for all
Sukriti Sethi
Government involvement People’s role
The government can play a major role in making Common people can help make globalization fair
this possible. Its policies must protect the by raising awareness about global issues and the
interests, not only of the rich and the powerful, concept of fair globalization, supporting fair trade
but all the people in the country. For instance, the and ethical consumerism, advocating for policy
government can ensure that labour laws are changes that promote fairness, backing NGOs and
properly implemented and the workers get their grassroots organizations working toward
rights. It can support small producers to improve equitable globalization, and educating themselves
their performance till the time they become about labor rights and environmental
strong enough to compete. sustainability.
Additionally, we can reduce our own
If necessary, the government can use trade and
environmental impact, participate in global
investment barriers. It can also align with other
initiatives, vote for leaders and policies that
developing countries with similar interests to fight
prioritize fairness, engage in local communities,
against the domination of developed countries in
promote cultural diversity, etc. Through these
the WTO.
individual actions and collective efforts, people
It can also align with other developing countries
can contribute to a more just and equitable global
with similar interests to fight against the
society.
domination of developed countries in the WTO.
Sukriti Sethi
Parameters of Globalization
(a) Permitting free flow of goods by removing or reducing trade barriers between the countries
(b) Creating environment for free flow of capital between the countries,
(c) Allowing free flow in technology transfer and
(d) Creating an environment for free movement of labour between the countries of the world.
Thus taking the entire world as global village, all the four components are equally important for
attaining a smooth path for globalisation. The concept of ‘globalisation’ by integrating nation states
within the framework of World Trade Organisation (WTO) is an alternative version of the ‘Theory of
Comparative Cost Advantage’ propagated by the classical economists for assuming unrestricted flow
of goods between the countries for mutual benefit, especially from Great Britain to other less
developed countries or to their colonies.
Saanvi Ranjan
Globalization and the Indian Economy
Globalisation also had an impact on India's culture and philosophy, as the Western way of life and
ideas have become more prevalent. Following Globalisation, the Indian economy expanded by
increasing foreign currency, creating new jobs, decreasing the rate of unemployment, and so on.
The following examples demonstrate the impact of Globalisation on the Indian economy:
● Globalisation has resulted in an increase in the creation of new jobs in India.
● Several international companies are now operating in India, creating a slew of new job opportunities.
● Because of Globalisation, India’s IT sector has been booming in recent years.
● Opportunities have also increased as Indian companies collaborate with international firms to expand
their businesses and revenues.
● There has also been an increase in foreign investment. The increase in foreign reserves has resulted in
more companies investing in India.
Saanvi Ranjan
NIKE: A Case Study
INTRODUCTION:
Nike is a well-known global brand in the sportswear and athletic footwear industry, founded in 1964 as
Blue Ribbon Sports and became Nike in 1971. This case study explores how Nike adopted globalization to
become a global leader and the challenges it faced along the way.
STRATEGIES ADOPTED:
● Manufacturing:
Nike has outsourced its manufacturing over many countries,
particularly in Asia. This resulted in reduced costs, allowing higher
profit margins, thus making them be able to compete in global markets.
● Acquisitions: 1.1 : Logo of the Umbro
Another big reason for Nike’s Success was its acquisition of Famous Shoe Manufacturing
Company
Shoe manufacturing industries like Converse in 2003 & Umboro in 2007.
Shaurya Agarwal
NIKE: A Case Study
● Global Marketing and Sponsorships:
Much of Nike's success may be due to the company's global marketing campaign, which involves
signing sponsorship agreements with celebrities, professional sports teams, and collegiate athletic
programmes to promote their technology and design through their goods.
Their aggressive sponsorship strategy included partnerships with prominent sports events, teams,
and individual athletes worldwide. This approach was instrumental in building a globally
recognized brand.
● Brand Recognition:
Nike's iconic "swoosh" logo is now recognized worldwide,
and its marketing and sponsorships have been
instrumental in establishing a strong and ubiquitous
brand image. 1.2 : NIKE’s iconic swoosh
Shaurya Agarwal
NIKE: A Case Study
CHALLENGES:
Counterfeit Products:
The sports and fitness gear industry is historically fragmented, with diverse
brands vying for market share, ranging from low-cost options to high-end
labels. Nike, as a major player, faced counterfeit product challenges that
impacted its brand image and revenue.
Labour Controversies in the 1990 severely tarnished the Nike's reputation:
● Sweatshops: Criticism arose for use of sweatshops, leading to the
1.3 : Comparison of Real vs
creation of the Global Alliance for Workers & Communities in response. Counterfeit shoes
● Child Labor: Child labor allegations in factories producing soccer balls in
Cambodia and Pakistan were addressed by Nike, but challenges
remained due to inadequate oversight in some areas. Shaurya Agarwal
Concluding thoughts on Globalisation
In summary, globalization is a complex and interconnected process that has shaped our world in
various ways. It has facilitated economic growth, increased trade, and promoted the exchange of
knowledge and culture.Though it might have some kinks in the way, Globalization has paved the
way for new markets, enhanced trade and investment, and fostered cross-border technology &
knowledge transfers. We can see that it is imperative to secure fairness along with reaping its many
benefits.
Throughout this project, we delved into various aspects of globalization.
Tying it all together with a perfect real life example of Nike to help us
understand the topic well. It serves as a prime example of how a company
can successfully embrace globalization and emerge as a global brand leader
in a competitive industry. While it encountered significant challenges, it
adeptly navigated the complexities through ethical practices and market
adaptation.
As we move forward, addressing the challenges and ensuring that the
positive impacts are accessible to all should remain a top priority.
BIBLIOGRAPHY
➔ http://www.johnsjc.com/BO/Globalisation.pdf
➔ http://www.byju's.com/Globalisation
➔ https://en.wikipedia.org/wiki/Nike,_Inc.
➔ https://www.geeksforgeeks.org/interlinking-production-across-countries/
➔ https://www.researchgate.net
➔ Globalization: Introduction, Meaning, Definition and History
➔ https://www.mageplaza.com/blog/nike-marketing-strategy
➔ https://en.wikipedia.org
"Globalization is not a
choice, but a fact. It is
not good or bad. It's how
to use it and make it
positive for everyone."
-Klaus Schwab
founder and chairman of WEF
