Focus behind globalization:

1.Export has been highly enhanced.

Foriegn companies are interested in trading in different countries.Trade is fast
er than production.
Deep realation between coutries:Access of wider resources, products,service and
markets across nation.
Thus the variety,quality and prics of products improves.(More the competition,mo
re stress on these factors)
Factors leading to growth in globalization:
1.Technlogy Growth:(growth of technology)-Transportation(shipping),communication
in all parts of the world.
Road,rail
and ports.
2.Liberalization of trade-Trade barriers are being brought down,
import duties that are responsible for hi
gh prices are being slashed
bars on 'quantity import restriction' are
being raised.
3.Growth of supply services:Growth of banking,payment,insurance,trade mission,tr
ade fair,storage,distribution,courier,internet,personal visits.
Banking is important,monetary and
payment txsactions are done through banking
insurances of cargoes,ships[if tr
apped in fire,gets sunk,captured by pirates]
countries opening embassies these
days have separate trade missions in the embassies.
in trade-fairs imported goods are
displayed in front of consumers.
4.Growing consumer pressures: In the last 40-50years verge income of the people
have grown much much larger.If income level moves demand also moves up.Rise in i
ncome means rise in demand,
taste,quality,novelty and niche.
NICHE:specific,small segmen
t of the market.One particulr buer needs a particular,hughly customized product.
Produced at higher price.
5.Increased Competition: Production of diverse/dissimilar product services compe
te for comsumer's discretionary-surlus-disposable income.
Ex.gift of mink coats OR a trip to swe
den and buy a mink coat from there.
"This pressure forces firms to look out
side to source and sell."
International/global approach aids com
petitiveness which in turn reduces prices,diversifies choices and makes things a
ffordable.
6.Changing Political Scenario: Since 1950s some incidents:
a.Breaking down of the Communis
t Blocs: USSR broke into 13nations.Prviously USSR was communist nation hence eve
rything was state owned.
In 1980s Soviet economy brok
e 13 nations declared themselves independant and became capilastic(free economy)
.
b.Friend to foe: stories: Germ
any-UK/France.
7.Increased International Cooperation:Treatiest Agreements:Treatieast Agreements
-Reciprocal advantge,growth in mutual EXIM
Addressing common issues.
 travel facilities ,security of investment,patents,trademark,cop
yrights:LOCALS ARE NOT ALLOWED TO COPY IMPORTED ITEMS
Fight against ,diseases,flood and calamities.