GLOBALISATION

1
GLOBALISATION

• The Growing Integration of the worlds
  economies."

2
What?

• The process by which the world economy is
  becoming more integrated (in the past economies
  were largely self-contained now they depend much
  more on each other for inputs and for markets for
  outputs)
• The reduction of the difference between one
  economy and another (Coca-colanisation.)

3
Factors contributing to globalisation

• Improvement in communications technology

4

• Transport is much cheaper and faster

5

• Deregulation of economies rules and regulations
  governing business removed (especially rules
  regarding foreign ownership) privatisation

6

• Removal of capital exchange controls, i.e.
  investment in other countries made easily

7

• Free trade dismantling of protectionist policies

8

• Consumer tastes have changed, and consumers are
  more willing to try foreign products

9

• Emerging markets in developing countries,
  especially the Tiger economies of SE Asia, in
  the 90s, and now India and China. large
  consumer markets with increasing amounts of money
  to spend

10
Effects of Globalisation

• Increased Competition
• Foreign Competitors
• Deregulation
• New Opportunities

11
Meeting Consumer expectations and tastes

• Increased quality
• Increased service
• Reduced price
• Increased choice

12
Economies of scale

• Buying
• Labour
• Productivity
• Specialisation
• Technological

13
Choice of Location

• Reduced costs
• Increased business performance