Globalization

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2012

Globalization
“Globalization has changed us into a company that searches the world, not just to sell or to source, but to find intellectual capital - the world's best talents and greatest ideas” Jack Welch

Prepared by:

Ibrahim Khairat
Mounir Ezzat Ragab
Sherif Ismaiel

Globalization 2012
Contents
Introduction: ....................................................................................................................................................................... 3 The Forces Driving Globalization ........................................................................................................................................... 3 Globalization Advantages..................................................................................................................................................... 6 Globalization Disadvantages & Challenges ............................................................................................................................. 9 Disadvantages of Globalization ......................................................................................................................................... 9 Challenges of Globalization .............................................................................................................................................11 Conclusions & Recommendations ........................................................................................................................................11 References .......................................................................................................................................................................13

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Globalization 2012
Introduction:
The Term Globalization is so powerful such that it’s difficult to create a compact definition of it. It may be defined from different perspectives and in several ways. One can say Globalization refers to the combination of Economics and Societies all over the world. It connects technological, economic, political, and cultural exchanges made possible by the progress in transportation, infrastructure, and communication. An alternative definition would be increasing linkages between the world, including the international spread of cultures as well as diseases and crimes, while natural and artificial barriers between nations fall. Finally, the most well-known definition is referring to Globalization as the shrinking of the world into a global village, as borders disappear, distance decreases, and time shorten. Globalization is displayed in the growth of world trade as a share of output, the percentage of world imports to gross world product GWP increased fro m 7% in 1938 to 10% in1970 and to more than 18% in 1996. This is reflected in the surge of foreign direct investment (FDI): FDI in developing countries rose from $2.2 billion in 1970 to $154 billion in 1997. It has also accrued in national capital markets becoming integrated.

The Forces Driving Globalization
Many Companies go international to be able to increase the value of their business, as well as the value of their profit. Therefore; it became imperative for companies to build a long term, sustainable business. There are many factors that companies need to develop to be able to survive in the global market, e.g. the following are a number of factors that have contributed to the increase in growth globalization in recent decades: 1- Increase in and expansion of technology.

2- Liberalization of cross-border trade and resource movements. 3- Development of services that support international business. 4- Growing consumer pressures. (Both local & international)
5- Increased global competition.
6- Changing political situation and climate.
7- Expanded cross-national cooperation

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Globalization 2012
There are a number of other factors that make rapid international expansion a necessity, rather than an option to be reviewed when the...
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