Meaning of Globalization

Globalization is the process of bringing the world together. Globalization is process of making entire world as one village. The global company views the world as one market.

Minimizes the importance of national boundaries, sources, raises capital and markets wherever it can do the job best. The concept of geography has become history. It is the rapid expansion of communication and transportation which has reduced distances and generated an everlasting interdependence among people and nations at all levels.

Globalization can be explained in different perspective.

In perspective of developing company

In perspective of companies

1. For developing countries perspective – For developing, it means integration with the world economy.

In simple economic terms, globalization refers to the process of integration of the world into a huge market. Such unification calls for removal of all trade barriers among countries.

Even political and geographical barriers become irrelevant.

2. Company level perspective- For company level perspective globalization means two things:

1. Several manufacturing locations - The company commits itself heavily with several manufacturing locations around the world and offers products in several diversified industries such as coca cola, Pepsi , unlevered, Colgate, etc.
2. Local competitors- Company’s ability to compete in domestic markets with foreign competitors.

               Colgate vs. Patanjali (ved Shakti vs Dantkanti)