globalization of markets

Before understand the meaning of globalization of markets, it is very important for us to understand the meaning of globalization. Globalization means allowing interaction, integration among the people, companies and government of different nations by international trade, investment, and aided by information technology.

Meaning of globalization of markets

Globalization of the market means doing business in different countries of the world. Globalization of market includes all the global companies that are currently doing and expanding their business in different countries. Companies that are doing business in multiple countries are known by different names. For example- multinational companies, and international companies.

Types of globalization

1) Political- In political business globalization, different governments of different nations come together and work for the welfare of the people globally. For example- EU, UN, WHO.

2) Social- In Social globalization, different societies from different countries promote themselves globally by which people’s lifestyles is spread over global networks. For example- International entertainment channels.

3) Economical- In economical globalization, Normal companies expand their business in different countries of the world to generate more profit and increase the goodwill of their company. For example- Coca Cola, Dominos, etc.

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Stages of globalization

Globalization has four stages. Let’s discuss all stages one by one:

1) Domestic Stage- In Domestic Stage, Production, marketing, and other activities of business is limited to its home country. For example- If an Indian company is doing business in India only then we can say that the company is doing business at domestic stage.

2) International Stage- When a company starts expanding its production and business activities to other countries as well then the company is doing business at international stage. For example- Reliance, Tata, etc.

3) Multinational Stage- Multinational Stage means when the company starts production and other business activities in more than one international country.

4) Global Stage- Global stage means when the company’s product is available in every part of the country.

Impact on company when they go for international business

1) Increase in business– When a company is expanding its business it means that the company will do business in different countries and increase the goodwill of the business and try to reach more and more people.

2) Large Competition– Companies face heavy competition at the international level when they are about to expand their business internationally. Usually they get double competition. The first is to compete with the domestic companies that are already doing business in the country and secondly with those companies who come to the country to do business from different countries.

3) Increment in investment– Companies need more workers and investments to increase the productivity of the product to ensure that no one will face the problem of product shortage in the country.

4) Tax relaxation– Every government of any country gives tax relation to those companies which come to their country for the purpose of doing business so that people get more choice at lower prices in the country and the country’s GDP and current situation can be improved.

5) Remove Monopoly– Monopoly means that there is no competition in the market for a particular product. For example- Oil company, if there is only one oil company in the country then the company will be called monopoly oil company as there is no other company producing or supplying oil in the country.

How Indian companies are performing in the global market?

Indian companies are giving great performance in global markets and defeating many foreign companies. Let’s have some example of Indian companies that are doing great in global market:-

1) Peter England- Because of name may be you think its a foreign brand but no this is not foreign brand. This is an Indian brand which is run by Aditya Birla group in India and in global market also. Performance of this brand in global market is amazing. As of today, Peter England operates his business in over 300 countries and has a customer base of over 4 million.

2) Cafe Coffee day (CCD)- Cafe Coffee day is one of the most popular company in the world and It is known for its coffee. Headoffice of this company is situated in Bengaluru. If we talk about the outlets of this company, then the company has more than 1600 outlets across the world.

3) TATA- Tata Industries Group is a well-known industry in today’s time which does not need any kind of introduction. TATA group was founded by Jamshedji Tata but Its real growth has been seen under the ownership of Ratan Tata.

4) Jaguar- Jaguar is an Indian brand that manufactures and sells cars in India and outside India. The brand comes under Tata Motors as the Tata group acquired this brand from Ford Motors many years back.

5) Lakme- Lakme company manufactures cosmetic products and it is very well known company regarding its cosmetics. In India and outside India most people prefer to buy cosmetic product of Lakme company because of its good quality and this is the reason today Lakme has huge customer base and it becomes a billion dollar company.

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