GLOBALISATION Challenges and changes A phenomenon, a process a state or a concept. It has evolved partly due to the trend of increasing international trade across boundaries and the conduct of business activities in more than one country

Globalisation of industries and markets (Macro environment) Economic forces Increasing incomes Global trade World financial markets Market forces Global competition Deindustrialisation in North America and Western Europe Technological forces transport revolution information and communications revolution Political forces reduced trade barriers intellectural property rights privatisation development of trade blocs technical standards regional trading blocs – EU, NAFTA, ASEAN Social forces consumerism convergence in customer tastes education and skills

Globalisation Drivers Potential for globalisation cost market government competitive

Advantages of globalisation for businesses, customers and countries To business To customers To countries Access to mass markets increased sales Lower prices Improved standards of living I both developed and developing countries Economies of scale and reduced costs Wider choice Increased democracy – fall of communism Access to resources Access to finance and tax savings Improved quality

Disadvantages of globalisation for businesses, customers and countries To businesses To customers To countries Increased competition standardisation exploitation More demanding consumers Loss of national culture and identity Increasing volatility Uneven benefits environmental factors