GLOBALISATION

Globalisation

Globalisation

Introduction

The term globalisation has a different definition for different individuals. Some see globalisation as a beneficial process which will contribute decisively to global economic development. Others have a negative perception for this process and believe that it increases inequality within and between nations, threatens employment and living standards and thwarts social progress. The objective of this study, which is an overview of certain aspects of globalisation, is to compare the present the different definitions of globalisation along with its benefits in the contemporary world.

Globalisation

Globalisation is a process formed as a result of human innovation and technological progress. It evokes the increasing integration of economies around the world, particularly through trade flows and financial flows. The term sometimes also refers to international transfer of labour and knowledge (Lentner, 2004, Pp. 98-121).

The term is commonly used since the 1980s, that is to say, since that technological progress allowed for easier and faster international operations (commercial or financial).

With the globalisation of markets, it is possible to exploit more markets in the world. This means that one can have access to more capital and technological resources (Bhagwati, 2004, Pp. 23-98). Moreover, It has also opened numerous opportunities in the field of imports and exports. However, markets do not necessarily guarantee that this increased efficiency benefits everyone. Countries must be prepared to launch the necessary policies and regulations to survive the highly volatile and unexpected environment.

The new challenges that developed and developing countries alike encountered were met by the introduction of neoliberal economic policies. Globalisation proved to be a valuable tool for promoting economic growth, development and poverty alleviation at national level. In the last two decades, world trade has averaged 6% annually, or twice the gross world product. Globalised business and operations are one of the main reasons for this growth.

Advantages of Globalisation

A country or organisation can achieve one or more of four categories of benefits, if moving with the flow of globalisation. These include 1) Cost Reduction: Globalisation can reduce global costs in different ways, such as importing cheaper raw materials etc.; 2) Economies of scale can be made ??by combining production or other activities for two or more countries; 3) Lower cost of factors can be achieved by operating the manufacturing and other facilities in countries with low production costs. Moreover, concentrated market means reducing the number of products that are manufactured by many local manufactures; 4) Preferred Customers: Availability, ...