Globalization and its impact on operation in Egypt Name: Eslam Mohamed Henedy ID: Supervised by : Dr.Nagwa Mohamed

What does the Globalization mean? The term globalization refers to the increasingly free flow of goods, services, financial capital and labor across national borders Globalization is often associated with economic development, financial markets and international business.

When did the globalization begin? Some world historians like Adam Smith said that the globalization started in 14th century. Other world historians insist that globalization stretches back even earlier. Third group of historians think that the world economy was completely separated before the early nineteenth century None of these three competing views has distinguished explicitly between trade expansion driven by booming import demand or export supply, and trade expansion driven by the integration of markets between trading economies. This article makes that distinction, and shows that there is no evidence supporting the view that the world economy was globally integrated prior to the 1490s but there is abundant evidence supporting the view that a very big globalization bang took place in the 1820s.

What are the globalization drivers? Drivers of globalization refers to the factors that increase international trade and add to the sense that the economy involves interdependency of countries for producing and consuming goods these drivers includes: 1. Information & Communication technology drivers 2. Cost drivers 3. Economic drivers 4. Market drivers 5. Competitive drivers 6. Political & Government drivers

Information & Communication technology drivers Communication technology is the activity of designing, constructing and maintaining communication systems. In the modern era it is referred to as ICT (information and communication technology), and includes any communication device or application such as Radio and TV.

Cost drivers Cost driver is any factor which causes a change in the cost of an activity. The cost drivers of globalization pertain to the quest to obtain new, cheaper resources, be they materials or lower production costs, coupled with the gaining of knowledge or know how that foreign markets offer. The overall desire is to permit commercial firms to increase their value efficiencies and lower costs

Economic drivers Economic drivers of globalization refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services

Market drivers Market drivers are the factors that affect consumer demand for a product. market driven organizations based strategies primarily on market trends and consumer preferences

Competitive drivers Competitive drivers deal with the competitive landscape within the market. in highly competitive markets, manufacturers must develop strategies that enable them to compete against competitive activities, like pricing and promotions.

Political & Government drivers Government can balance competition with social protections, controlling globalization Governments have the capability to tame what seems to be a senseless race to devour resources and amass profits Governments can act collectively, achieving balance in competition with social programs to boost social confidence and innovation

The effect of Globalization on Operation in Egypt Globalization will allow the easy flow of materials, parts and components between factories and countries in turn they have to plan and control their inventory in order to avoid the risks of any shortage in the inventory in today’s global economic environment companies are often looking for business partners all over the world > understanding of how manufacturing companies in other countries such as Egypt are preparing themselves for the globalization era is very important for decision makers in western corporations Globalization will enhance the ability of policy makers in Egypt to take a mixed grill approach and provide the necessary professional assistance such as training programs for improving workers skills, financial assistance such as grants and incentives

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