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The Restraining Forces of Globalisation

Globalization faces several restraining forces, including changes to local culture from adopted foreign aspects; controls and barriers countries maintain to protect domestic industries; and high costs for companies expanding globally due to currency conversion. Nationalism, conflicts among competing companies that can escalate between countries, short-sighted management ignoring local conditions, and negative domestic impacts from globalization all restrain the effects of increasing economic integration worldwide.

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John Firmine
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162 views

The Restraining Forces of Globalisation

Globalization faces several restraining forces, including changes to local culture from adopted foreign aspects; controls and barriers countries maintain to protect domestic industries; and high costs for companies expanding globally due to currency conversion. Nationalism, conflicts among competing companies that can escalate between countries, short-sighted management ignoring local conditions, and negative domestic impacts from globalization all restrain the effects of increasing economic integration worldwide.

Uploaded by

John Firmine
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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THE RESTRAINING FORCES OF GLOBALISATION

Culture
It plays a vital role and the culture of the country are changed due to the effect of the globalization. Eg. Western culture adopted in India. McDonalds.

Controls and Barriers


By maintaining control over market access and entry in both low and hightech industries and advertising every country protects local enterprise and interests.

Costs
When the company expands its market to the global world the costs involved are high and the home country losses its value in terms of money during the imports as the currency traded is to be converted to the foreign currencies.

Nationalism
Inflation rate GDP Exchange rates Money supply Trade barriers

War
Rises conflicts among the companies which indirectly leads to conflicts with countries

Management myopia and organisational cultures


Myopia is also a recipe for market disaster if headquarters attempts to dictate when it should listen. In many cases, management simply ignores opportunities to pursue global marketing. Global marketing does not work without a strong local team that can provide information about local market conditions.

Domestic Focus
Globalization has a direct impact to the domestic nation Eg. I.T

THANK YOU

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