Professional Documents
Culture Documents
Group Members
✓ Omesha Piyumi
✓ Nilani Niroshan
✓ Ishanka Athapattu
✓ Keshani Wickramarathna
▪ Drivers of globalisation
▪ Conclusion
What is globalization ?
Estimated
contribution to
global GDP
growth from 2016
- 2021
60%
• Developing an infrastructure
✓ Fashionable products
Artificial Intelligence is designing machines that have the ability to think and perform tasks that normally
require human intelligence. It is the intelligence of machines (PWC, 2017).
AI will
cause the
Global GDP
to rice up to
14% in
2030
(PWC, 2017)
Key Trends of Globalization , Consequences for
Businesses
➢ Reshaping Consumer Behavior ➢ Exchange of Technology
Customers have large multitude of choices in the market Globalization has increased the speed of
and this affect their behavior. technology transfer and technological
improvement.
(Hill,2013)
Global Institutions
Notable Global Institutions include ;
How emergence of "Global Institutions" Impact on
Globalization of Business
✓ Greater competition
✓ High unemployment
✓ Social Instability
(Gabriela, 2013)
QUESTION 03
Hill (2013) identifies two macro economic factors that underlie the trend
toward greater globalization.
Other drivers are Market Drivers, Cost Drivers , Government Drivers &
Competitive Drivers.
1. Decline in Trade and Investment Barriers
(Hill,2013)
2. Technological Change
• Development of the internet and world Wide Web have created e-businesses. It allows to buy or sell
goods though internet all over the world. ( E commerce)
As local markets become more and more Sourcing efficiency and costs vary from
structured, the opportunities for growth are limited country to country and global firms can take
and global expanding is a way most organizations advantage of this fact (Czinkota, 2011).
choose to overcome this situation (Czinkota, 2011).
Competitive Drivers
• Most local industries in developing countries lack the knowledge, skills and
resources to compete with developed markets.
• There are local industries in developing countries which need protection from free
trade.
(Ogaboh and Odu, 2013)
2. Brain Drain
➢ Globalization enables workers to move freely.
➢ Highly qualified professionals are moving to developed countries for better pay and
developing countries find it difficult to hold onto their best-skilled workers.
Nearly half of
all international
migrants
worldwide were
born in Asia.
Developing countries own a higher percentage of Many developing countries cultures has been
natural resources. The globalization has increased changed through globalization, and became
the use non renewable natural resources. It has also imitate others cultures such as, America and
contributed to increased pollution (Omoju, 2014) European countries. This might lead to destroy
their own culture, traditional, identity, customs
and their language (Hamdi, 2013).
CONCLUSION
✓ Countries can not survive or grow in isolation, so adopting to globalization to get benefit is a
must.
✓ Proper structural changes should be adopted in most suitable ways to the country.
✓ While moving with globalization, governments should take measures to protect national
interest and economy
Bauernfeind, M. (2006) Drivers of Globalization: Integration of Theories and Models. EBL [Onlin
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Czinkota, M. (2011) What drives globalization?. Michaelczinkota [Online]. Available at: <
http://michaelczinkota.com/2011/06/what-drives-globalization-part-14/> [Accessed on 30th
November 2017]
DHL (2017), The 21st century spice trade - A guide to the cross-border e-commerce opportunity,
December 2017 [Online]. Available at: <
http://www.dhl.com/content/dam/Campaigns/Express_Campaigns/Local_Campaigns/apem/express
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Erken, H. (2017) US global value chain integration: a major impediment for trump’s protectionist
trade agenda. Economic Rabobank [Online]. Available at: <
https://economics.rabobank.com/publications/2017/june/us-global-value-chain-integration-trump-
protectionist-trade/>. [Accessed on 18h November 2017]
REFERENCES
Faisal, N. (2015) Emerging markets is growing faster and influencing global demand. LinkedIn
[Online]. Available at: <https://www.linkedin.com/pulse/emerging-markets-growing-faster-
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Gabriela, S, M. (2013) The role of international organizations in the global economic governance –
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Hamdi, M, F. (2013) The impact of globalization in the developing countries. Developing Country
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Hunt, A and Wheeler, B. (2017) Brexit: all you need to know about the uk leaving the eu. BBC
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IMF (2000) Globalization: threat or opportunity?. IMF [Online]. Available at: <
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REFERENCES
Ingram, D. (2017) What are the positive effects of globalization in business. Bizfluent [Online].
Available at: < https://bizfluent.com/info-7757947-positive-effects-globalization-business.html>
[Accessed on 18h November 2017]
PWC (2017) Sizing the prize - what’s the real value of AI for your business and how can you
capitalise? [Online]. Available at: < https://www.pwc.com/gx/en/issues/analytics/assets/pwc-ai-
analysis-sizing-the-prize-report.pdf> [Accessed on 18h November 2017]
REFERENCES
Sadler, K. (2017) Will emerging markets emerge again from the gloom in 2017. Market
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Turner, C. (2016) How will brexit impact the global economy?. Myanmar Business Today
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Yip, G. S. (1991). Strategies in global industries: How U.S. businesses compete. Journal of
International Business Studies, 22 (4), 749–753.
QUESTIONS AND ANSWERS