1. GLOBALIZATION AND BUSINESS SYNCHRONIZATION
Globalization is said to be the process of increasing the interaction, unification, and
integration of the world’s economies, people, companies, and governments of different nation by
reducing the barriers to international trade like tariffs, export fees, import quotas etc. this process
is driven by the international trade and investment through information technology. This process
aims to increase the material wealth, goods, and services through creating efficiency in the labor
divisions by maintaining international relations, specialization and competition. This term is
closely related to economic globalization where the trade, FDI, capital flow, migration,
technology and military of national and international economies are integrated to achieve
maximized effects (Bhagwati, 2004).
Ahmed et al. (1993) explained that many studies measure these global activities on the
base of country size and by the growth of the company. Recently there is advancement in the
measurement methods that are based on econometrics and advanced computer technology. The
growth of international trade over the past decades is said to be the product of globalization. The
world trade has increased more than twenty seven folds since 1950’s (WTO, 2007). This resulted
in increased benefits to the consumers around the globe with respect to the selection of the
products.
The increased financial linkage with the countries around the globe has increased the
degree of diversification in the products and services offered by the companies and the countries
are able to cope with the idiosyncratic shocks. Thus there is profound correlation between the

2. level of risk sharing between the countries and the production specialization process ( Kalemli-
Ozcan et al. 2003)
The tremendous pace of globalization has significant impact on the countries around the
globe and the people living there. It has transformed various businesses like Detroit’s Big
THREE or Bangalore to IT hub from boom to bust or vice versa. It has played vital role in the
increased prosperity of the world since 1950’s which has now spread from United states and
Europe to the regions like China and India, which were considered formerly as poor countries
(BBC, 2007).
With the advent of globalization process, the world trade has increased much faster than
the overall growth of the world economy since 1955. The globalization has helped to reduce the
trade barriers like tariffs on the export of manufactured goods. The countries like Japan, Korea
and China are having dramatic increases in their living standard due to international trade. Many
MNCs are outsourcing their manufacturing units overseas to enjoy cheaper labor cost and stay in
the competition. Recently, Apple, Multinational giant, has become virtual firm by outsourcing
most of its production units to the companies in Asia (Schifferes, 2007).
The globalization has not only changed the way of manufacturing to various
organizations but also it has revamped various service sector businesses. Many services related
jobs are under the continuous threat and fear of outsourcing as the global companies tends to
master costs by shifting their functions to the other countries. Bangalore has become one of the
largest and fastest growing IT hubs outside United States (Nadvi, 1995; Parthasarathy, 2004).

3. India has become the world’s leading IT services provider, with its volume of offshore
business doubling every three year. It is not only a hub for software-related industries but also
houses several high-tech clusters (e.g. defence, aeronautics) and is considered to be the
scientific and engineering centre of India in terms of research and training and partly
manufacturing. What China has become to manufacturing, India has become to the new world of
business process outsourcing (BPO) - which includes everything from payroll to billing to IT
support (Nadvi, 1995; Parthasarathy, 2004).
Every process or function has positive and negative impacts associated with it. If the
globalization has so many positive influences on the world economy and trade, it has some
negative impacts on the social, cultural lives, and it has increased disparity within the people.
There are many critics that are continuously expressing their views against globalization. But the
point here is that globalization gathers pace and companies make new acquisitions and enter new
markets and categories, the complexity of harmonizing information across borders can only
increase. Although growth can sometimes be painful, there may never be a better time to think
about a global information strategy. To find the right balance between benefits and costs
associated with globalization, citizens of all nations need to understand how globalization works
and the policy choices facing them and their societies.

4. REFERENCES
Ahmed, S., B.W. Ickes, P. Wang, and B.S. Yoo (1993). International Business Cycles, American
Economic Review, 83, 335-359.
Bhagwati, J., (2004). In Defense of Globalization. Oxford, New York: Oxford University Press.
Kalemli-Ozcan, S., B. Sorensen, and O. Yosha (2003). Risk Sharing and Industrial
Specialization: Regional and International Evidence, American Economic Review, 93, 903-918.
Nadvi, K,. (1995). Industrial clusters and networks: case studies of SME growth and
innovation. UNIDO, Vienna.
Parthasarathy, B., (2004). India’s Silicon Valley or Silicon Valley’s India?: socially embedding
the computer software industry in Bangalore. International Journal of Urban and Regional
Research , 3, 664-685.
Schifferes, S. (2007). Globalization Shakes the World, BBC NEWS, Retrieved on June 11, 2011
from http://news.bbc.co.uk/2/hi/business/6279679.stm
World Trade Report. (2007). The GATT/WTO at 60: WTO World Trade Report examines six
decades of multilateralism in trade, Retrieved on June 11, 2011 from
http://www.wto.org/english/news_e/pres07_e/pr502_e.htm