Page 296 - DMGT401Business Environment

Unit 14: Changes in Business Environment

17. India also has, to its credit, the development of fourteen new drugs, many of which are Notes
now being exported.
18. Compound rate of growth of IT industry has been 55% over the last five years. India
commands over 16% of the world market for customised software services.
19. India is now poised to emerge as a major manufacturing base and an exporter of telecom
equipment in the world. A number of world-class facilities for electronic component
manufacture have been established, and India now produces integrated circuits and other
components with the latest device geometry.

Example: Many MNCs like GE have established R&D centres in India, the first outside of
the US. Besides, organizations like Intel, Motorola, Microsoft, Oracle, HP, etc., have their R&D
and manufacturing centres here. Nokia too is planning to establish its manufacturing unit in
India.

Task Enlist some the major latest innovations made by Indian scientists. Also
make a note of Indian Nobel winners that whose inventions affected business
environment.

14.2 Globalisation

People around the globe are more connected with each other than ever before. Information and
money flow more quickly than ever. Goods and services produced in one part of the world are
increasingly available in all parts of the world. International travel is more frequent. International
communication is commonplace. This phenomenon has been titled "globalisation."
It refers to the increasing integration of economies around the world, particularly through trade
and financial flows. The term sometimes also refers to the movement of people (labour) and
knowledge (technology) across international borders.
Globalisation is a modern term used to describe the changes in societies and the world economy
that result from dramatically increased international trade and cultural exchange. It describes
the increase of trade and investment due to the opening of barriers across borders and the
interdependence of countries. In economic contexts, it is often understood to refer almost
exclusively to the effects of trade, particularly trade liberalisation or "free trade".
The International Monetary Fund defines globalisation as "the growing economic
interdependence of countries worldwide through increasing volume and variety of cross-border
transactions in goods and services, freer international capital flows, and more rapid and
widespread diffusion of technology." (IMF, World Economic Outlook, May, 1997).
The World Bank defines globalisation as the "Freedom and ability of individuals and firms to
initiate voluntary economic transactions with residents of other countries".
Impact of Globalisation

Corporations are today changing their strategies and are reorganizing their functions to cope
up with the changed scenario. Whether it is their production process or location, Product strategy,
Marketing, Finance, HR policies etc. Organizations have incorporated the following changes:

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