Difference between globalization and internationalization 19-01-2017

                            Global Business Management                     19/01/2017

Difference between globalization and internationalization:

Globalization:

Opening up of borders or doing business in many parts of the globe without barriers is called globalization.

Internationalization:

Doing business with countries nearby or less distance from the actual or host country is called internationalization.

Methods of globalization:

There are two methods of globalization. They are

1)    Globalization of markets

2)    Globalization of production.

Difference between industry and market:

Industry consists of producers and suppliers of raw material, semi-finished goods and people. In economic terms industry deals with “supply”.

Market consists of competitors and customers who includes channel partners such as distributors and retailers. In economic terms markets deals with “demand”.

Globalization of production:

It is also called as “global sourcing”. it comes under both industry and market. It takes place by “investment”. Example include FDI.

Globalization of market:

Globalization of markets occurs through “Trade”. However it is less risky because if a trade goes wrong only that trade is the loss.

Whereas investment is more risky as it involves

1)    Long term investment

2)    There exists a chance of losing the brand image.

Easiest method of entering into globalization is through “TRADING”. The different ways through which one can start business in other countries are:

1)    Establishing branch or franchise.

2)    Involving in joint ventures.

3)    Setting up 100% green field.

BY CHAKRAVARTHY(161131).