Answer to Question #197848 in Economics for Lucky

Question

“Globalization is the reduction and removal of barriers between national borders in order to 

facilitate the free flow of goods, capital, services and labour.”

In the light of this statement analyze business model of Fast Food brand “Mc Donald” in various 

parts of world. What specific measures they have taken while entering India?

Answer 1

The revenue model of McDonald's is based on Franchising. How the Franchising Model works is based on the utilization of money of small investors by the fast-food restaurant chains whose sole purpose is rapid and efficient expansion.

The continuous existence and expansion of McDonald's in India shows its success in a highly orthodox market with very rigid eating habits and traditionally very Indian. The company introduced the concept of Family Dining restaurant especially for India.