Global Integration
Global Integration
·
The processes by which a
company combines different activities around the world so that they operate
using the same method
·
Global integration can
involve the processes of product standardization and technology development
centralization.
·
The globally integrated
enterprise is a term coined in 2006 by Sam Palmisano, the then CEO of IBM Corp,
used to denote "a company that fashions its strategy, its management, and
its operations in pursuit of a new goal: the integration of production and
value delivery worldwide."
·
It is said that the world has
become a global village. Fast transportation, telecommunications, radio, TV and
the computer have brought the most distanced countries and nations close to
each other. Globalization is this coming together of countries in all fields of
commercial, industrial and cultural activity.
·
The developed or advanced
countries are getting closer in their own ways.
·
The concept(general idea) of
globalization became popular after the collapse of Communism in the Soviet Union and Eastern Europe. It is
in effect the victory of capitalism and means trade without restrictions, free
movement of capital and technology and the operation of a completely free
market economy.
·
Globalization aims at opening
up new markets and expanding investment. In fact capital doesn’t flow easily
from the developed countries in to developing countries.
·
Globalization also means free
trade or the lifting of restrictions of duties and taxes on imports and
exports. We don’t stand to gain much when our goods can’t compete with those of
the developed countries. When the goods of the developed countries are allowed
free entry here, our people will buy them in preference to our goods. Our goods
will not even be exported. This kind of free trade will result in closure of
our factories and unemployment of the labour classes.
·
In fact the time is not ripe
for making free trade internationally operative. This can happen of course when
the developed countries have spent their capital and efforts on the education
and training of the work force of the undeveloped part of the world.
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