Meaning of Globalization.

In its simplest sense globalization refers to the widening, deepening and speeding up of global interconnectedness . Globalization is a long-term historical process of growing world-wide interconnectedness Nederveen Pieterse 1995 Globalization means the onset of the borderless world (1992) There are five possible meanings for the word globalisation': internationalisation, liberalisation, universalizstion, westernisation/ modernisation and deterritorialisation. Scholte 1999 Globalization is destroying everything that is valuable in our civilization. Shiva 2001 Internationlisation refers to the interconnectivity of countries, while Globalization refers to the intensification of relationships.

International business =
Business transactions crossing national borders at any stage of the transaction. In fact, the term international business was not in existence before two decades. The term international business has emerged from the term international marketing, which in turn, emerged from the term 'export marketing'.

International marketing is the application of

marketing principles to across national boundaries International marketing (IM) or global marketing refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm. International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take place between two or more regions, countries and nations beyond their political boundary.

Why should one study International business?

Companies when they grow large they go global. An awareness of commercial aspects in international business is an asset for any manager. There are law, tax, currency and culture differences in all countries and such study will help ensure greater advantage in any business career. In the 21st century, goods, services and knowledge flow across country borders much more easily than in the past. For business, the implications of these flows and the increased mobility of human resources are profound. To supplement knowledge in various areas in management. To have sensitivity to international developments.

Drivers of globalization. 1.Increased role of international organizations such as WTO, UN, IMF that deal with international transactions 2.Increase in the number of standards applied globally, for example, copyright laws

3.Technological change 4. Declining trade barriers 5. Declining investment barriers 6. Economy of scale 7. Economies of scope 8. Division of labour 9. Political drivers NATO,EU,emerging economies gained a greater voice under a landmark agreement that gave 6% of voting shares in the IMF to dynamic emerging countries such as China. Under the agreement, China will become the IMF's thirdbiggest member 10. Market drivers 11. Growth of MNCs Eurpean union has 163,US 162, Japan 67 in 2007 12. Flow of FDI 13.Explosion of media/TVcoverage 14. Increasing income per head prosperity drive new consumer growth and urbanization 15.Development of global telecommunication infrastructure: Telecommunication today involves the use of an electronic transmitter. This may be a

telephone, a television, a computer modem, a radio or a satellite. Regional Integration: EAC: East African Community AU: African Union ACP: African Caribean &Pacific Countries SAARC: EU: European Union: G7:is an international finance group consisting of the
finance ministers from seven industrialized nations.1975France, Germany, Italy, Japan, United Kingdom, United States. andCanada

G8:a forum, created by France in 1975 for the

governments of seven major economies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.In 1997, the group added Russia, thus becoming the G8

G10 Group Ten countries that have agreed to

participate in the General Arrangements to Borrow (GAB).Belgium, Canada, France, Italy, Japan, the Netherlands, the United Kingdom, and the United

Statesand the central banks of two others, Germany and Sweden, GCC:Gulf Cooperation Council NAFTA:North American Free Trade Agreement or NAFTA is an agreement signed by the governments of Canada, Mexico, and the United States ASEAN:Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia. Myanmar, Philippines, Singapore, Thailand, VietNam EFTA:European Free Trade Association,Liechtenstein, Iceland, Norway, and Switzerland APEC:Asia-Pacific Economic Cooperation is a forum for 21 Pacific Rim countries ANDEAN:Spanish: Comunidad Andina, customs union comprising the South American countries of Bolivia, Colombia, Ecuador and Peru