Presented by : Nadine Youssry Soha El-Baktoushy Walaa Samy Presented to : Dr.Nagwa Mohamed

What is Globalization ? Globalization is a process of interaction and integration among the people, companies, and governments of different nations A process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.

People think Globalization is new, though it existed through the history of travel, trade, communication and politics. As an example, The Silk Road, a trade route between China and the Mediterranean Sea, promoted the exchange of ideas and knowledge, along with trade goods and foods such as silk, spices, porcelain, and other treasures from the East.

Globalization in economy To increase trade, many countries have created free trade agreements with other countries. Under free trade agreements, countries agree to remove trade barriers. For example, they stop charging tariffs and taxes on imports. In 1994, the United States, Mexico, and Canada signed the North American Free Trade Agreement (NAFTA), which eventually ended all tariffs on trade goods between the three nations. This allowed globalization of goods and services, as well as people and ideas, between these three countries.

Globalization’s positive aspects Globalization enables us to get more variety, better quality, or lower prices goods and services from anywhere in the world Reduced costs of goods Expanded cross-national cooperation Increased global competition Liberalization of cross border trade and resource movements

Globalization’s negative aspects New risks and uncertainties brought about by the high degree of integration of domestic and local markets High degree of imitation Price and profit swings Corporations that previously have been enjoying the benefits of globalization, now face unstable and unpredictable demand and business opportunities and their products quickly become commodities leaving them little or no pricing power and under constant pressure by new competitors

Impact of globalization on market Markets became open to international organizations as the cost and complexity of operating overseas is reduced by Globalization. increased market competition, in turn increasing the importance of effective international marketing. Many organizations cannot rely on the fact that they are the only player in a long held domestic market, there are new competitors from overseas appearing all the time. Transport and distribution systems are more efficient than ever before they are easier, faster and cheaper for businesses to get their products to consumers. Electronic transfers have also made sending and receiving international payments faster and more secure. Finance is more readily available to both consumers and organizations, thanks to the globalization of many financial providers. Investors are interested in spreading their investments over a wider range of markets to reduce their overall level of risk. An increased availability of capital makes it easier for organizations to finance their international marketing efforts.

Impact of Globalization on market (KFC ) Kentucky fried chicken (KFC) is world largest chain of fried chicken restaurants. It is the second largest fast food restaurant after McDonalds. Its headquarters are in Louisville United States. The company has over branches in over 105 countries worldwide. The biggest markets of its fried chicken are in china and United States of America. Through globalization, the company has been able to expand to many countries. People have moved to consuming of more junk foods have are affecting their health and lives. People in many countries have adopted the western cultures thus promoting eating of Kentucky fried chicken worldwide.

Through the use of internet and media, the company has been able to market itself globally. Also, in the media adverts, its products have been displayed as a modern way of eating habits. Through globalization, the company has been able to investment across United States borders. This has been necessitated by the growth of markets abroad and westernization of many countries. Business opportunities have been opened up in many countries resulting to rapid expansion of the company. In this regard, the company has been able to expand all over the world hence becoming the second largest fast food restaurant in the world. The company has been able open over branches worldwide.

Factors in increased globalization Increase in and expansion of technology Advances in “cheap” communications can help in reaching global suppliers and customers at a low cost Liberalization of cross-border trade and resource movements Countries usually restrict the movements of goods, services and resources across their borders to protect its own industries or due to other political reasons. However, most governments have reduced such restrictions primarily for three reasons : 1. Their citizens want a greater variety of goods and services at lower prices. 2. Competition forces domestic producers to become more efficient. 3. They hope to develop relationships with other countries so as to lower their barriers in turn.

Growing consumer pressures 1. Due to the breakthroughs in communications and technology, customers are now more aware of products and services available in other countries. 2. Not only do customers know of such products, but also have access to purchase those products. 3. Also, customers are looking for new, better, and tailored products. Changing political situations Willingness of governments to support programs such as improving airport and seaport facilities have improved speed and cost efficiencies for delivering goods internationally.

Thank you Any questions ?