revised globalisation

7/31/2019 Revised Globalisation

1/14


2/14

Globalisation is the buzzword that has come todominate the world since the nineties of the lastcentury.

Till 90s the process of globalisation of the Indianeconomy was constrained by the barriers to tradeand investment.

Liberalisation of trade, investment and financialflows initiated in the nineties has progressivelylowered the barriers to competition and hastenedthe pace of globalisation.


3/14

Globalization in its current

phase has been described as anunprecedented compression oftime and space reflected in thetremendous intensification of

social, political, economic, andcultural interconnections andinterdependencies on a globalscale.-Stiegler,


4/14

The impact of globalisation has been highly positive inalmost all spheres of economic and social life and

virtually no negative effect.

India's economic growth has been high, exports have

boomed, incidence of poverty has been reduced,

employment has surged, begging by India for economic

aid has stopped, long-term inflation rate has gone down,

scarcity of goods have disappeared, the quality of

products available have improved substantially and

overall India has become progressively vibrant and

internationally competititive.


5/14

Benefits ofGlobalization:

Foreign investment inIndian Industry

Use of advancedTechnologies

Increase inEmployment

Negative effects ofGlobalization:

Increase inCompetition

Reduction in profits ofIndian companies

Monopoly of foreigncompanies


6/14

The automotive industry designs,develops, manufactures, markets,and sells motor vehicles, and is oneof the Earth's most importanteconomic sectors by revenue.

The automotive industry in Indiais one of the largest in the worldand one of the fastest growingglobally. India's passenger car &

commercial vehiclemanufacturing industry is the

sixth largest in the world, with anannual production of more than

3.7 million units in 2010.


7/14

The first car ran on India's roads in 1897. Until the 1930s, cars wereimported directly, but in very small numbers.

Following the independence, in 1947, the Government of India and theprivate sector launched efforts to create an automotive component

manufacturing industry to supply to the automobile industry. However,the growth was relatively slow in the 1950s and 1960s due tonationalisation and the license raj which hampered the Indian privatesector.

No major automobile manufacturer s in the world had their presence in

the countryPeople and Business houses didnt see automobile as a profitable sector

in the countryNo R&D was there in the sector as it was hassled by the governmentpolicies


8/14

Globalization in automobile industry has great accelerated during last half of1990s by Giant Multinational Automakers.

Modern global automotive industry encompasses principle manufacture,general motors, ford, Toyota, Honda, Volkswagen operates in competitive

market place.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7million automotive vehicles were produced in India in 2010, making the countrythe second fastest growing automobile market in the world.

The sector is not only progressing in terms of production, sales etc. but alsoadopting the moderate work system and human resource polices like

Personal focused comprising job satisfaction, health system and social support,organizational focused comprising organization commitment and perception

of organizational justice.


9/14

Maruti Udhyog Limited

Tata Motors

Hyundai

Honda

Fiat

Ford

Toyota

Mahindra & Mahindra


10/14


11/14

Global market dynamics:Invest into production facilities in emerging markets to reduce production costs.

Establishment of global alliances:

US Automakers THE BIG THREE

(gm, Ford, Chrysler)Making commercial strategicpartnership to strengthen its positionin the market.

Industry Consolidation:Market divides the automakers in 3 tiers:

1st tier company merges-Volkswagen, BMW.2nd tier company merges-Mercedes benz, Fiat.3rd tier companies merges- Mazada-mistubushi,

Kia-volvo.


12/14


13/14

Interest Rates were de-regularized

Imports of new cost-effective technologiesincreased

Exports of cars & spare parts was a hit

New companies set up their plants which gaveemployment to youth

Purchasing power of customer increased

Easy and cheap availability of finance forcompanies to invest in automobile


14/14

Indian economy has made rapid strides in the process ofglobalisation.

Globalisation is increasing the integration of nationalmarkets and the interdependence of countries worldwide for a wide range of goods, services, andcommodities.

The most important lesson that we must learn from thecrisis is that we must be self-reliant.

Indias trade reform programme resulted in strongeconomic growth in the globalization age.

In particular, difficult decisions are to redress the fiscal

imbalance, by reducing subsidies, completing theprocess of tariff and tax reform, and stepping-upprivatization of state-owned enterprises.

The efforts are needed to balance the trade and consider

expansion of trade in other countries of the world.

revised globalisation

Documents