Definition of small scale industry
� An organization can be classified as a small business using criteria of employees ,annual sales or total assets .small industry any independently owned and operated profit seeking enterprise that has a fewer than 500 employees .small industry may be little in size ,but they have little impact on the world economy . in india ,small and medium industy play a vital role in the growth of economy . Small industry have a 40 percent of share in industrial output ,producing over 8000 value added products . they contribute nearly 35 percent share in direct export and 45 percent in overall export from the country .They are the one of the biggest employment providing sector after agriculture providing employment to 28.28 million people. Small scale industry is important for our economy& our country � Increased free trade between nations
� Increased liquidity of capital allowing investors in developed nations to invest in developing nations � The business market in the world has no boundaries, they can market their products in any part of the world. This has improved the chances of laying hands on global markets & technologies, which would definitely increase our Quality of Living Standards. � Corporations have greater flexibility to operate across borders � Global mass media ties the world together DEFINITION OF GLOBALISATION
Globalization is an attitude of mind- it is a mindset which views the entire world as a single market so that the corporate strategy is based on the dynamics of the global business environment Or
It is the growing interdependence through increasing cross-border transaction in goods and services.
ROLE OF GLOBALISATION IN SMALL SCALE Business
� Doing, or planning to expand business globally. � Giving up the distinction between the domestic market and foreign market and developing a global outlook of the business. � Locating the production and other physical facilities on a consideration of the global business dynamics, irrespective of national considerations. � Basing product development and production planning on the global market considerations. � Global sourcing of factors of production i.e, raw materials, components, machienery, technology, finance etc.. are obtained from the best source anywhere in the world. � Global orientation of organizational structure and management culture. Globalization has various aspects which affect the world in several different ways such AS:- � Industrial - emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies. Particularly movement of material and goods between and within national boundaries. � Financial - emergence of worldwide financial markets and better access to external financing for borrowers. As these worldwide structures grew more quickly than any transnational regulatory regime, the instability of the global financial infrastructure dramatically increased, as evidenced by the financial crises of late 2008. � Economic - realization of a global common market, based on the freedom of exchange of goods and capital. The interconnectedness of these markets, however meant that an economic collapse in any one given country could not be contained. � Political - some use "globalization" to mean the creation of a world government which regulates the relationships among governments and guarantees the rights arising from social and economic globalization. Politically, the United States has enjoyed a position of power among the world powers; in part because of its strong and wealthy economy. With the influence of globalization and with the help of The United States' own economy, the People's Republic of China has experienced some tremendous growth within the past decade. If China continues to grow at the rate projected by the trends, then it is...
Bibliography: Business Today, Nov 30. 2008,
India Today (Aspire)
Please join StudyMode to read the full document