Special Correspondent

CHENNAI: Technology, liberalisation of economy, emergence of services and growing consumer pressure are some of the forces behind globalisation, Nishith Desai, tax and corporate lawyer and founder of Nishith Desai Associates, said on Saturday.

He said globalisation had three major components: strategy, tax and law.

Before globalising one had to study the environment, which included law, history, geography, culture, economics and political science.

Only then could a strategy be formulated for globalisation, he said.

Strategy was all about choices, and how one made choices was the most important in the formulation of strategy. Philosophy was very relevant to strategy, he said.

If one did not have philosophy but only tactic, it would not help the business to survive for long, he said.

The strategy needed to be formed on fronts such as marketing, sourcing, labour, management, ownership, financial, legal, control and public affairs.

Once this exercise was completed, one could think of competing in the globalised world, he opined.

Did size matter for competing in a globalised world? No, he said.

Positioning oneself in the market and how one addressed his space was the most important components.

J. Chandramouli, convener, Taxation and Finance, FICCI, TN State Council, said the rate of growth of the GDP was increasing from 5.6 per cent during the period 1980-90 to 7 per cent during 1993-2001. In the past four years, the annual growth was impressive, at 7.5 per cent, and 9.2 per cent during 2006-07.