The role and impact of globalization on the growth and evolution of businesses AO3 only
AO3 You need to be able to: Demonstrate synthesis and evaluation. Command terms these terms require you to rearrange component ideas into a new whole and make judgments based on evidence or a set of criteria. Compare, Compare and contrast, Contrast, Discuss, Evaluate, Examine, Justify, Recommend, To what extent
Fundamentally, globalisation is the closer integration of countries and peoples of the world which has been brought about by the enormous reductions of costs of transport and communications and the breaking down of artificial barriers to the flow of goods, services, capital, knowledge and to a lesser extent, people across borders
Joseph Stiglitz, former chief economist at the World Bank
Many authors have attempted, with relative success, to define globalization in a variety of ways. Some claim that it cannot be done, others claim that it would constrain the meaning to do so, and still others have defied these two beliefs and have constructed a working definition. Despite differing opinions about developing a definition, all authors agree on one thing: that defining this term is anything but easy. This paper will attempt to provide a comprehensive overview of the existing definitions of globalization and introduce our proposed definition:
“Globalization is a process that encompasses the causes, course, and
consequences of transnational and transcultural integration of human
and non-human activities.”
Dr. Nayef R.F. Al-RodhanDirector of the Program on the Geopolitical Implications of Globalization
Globalisation is an umbrella term for a complex series of economic, social, technological, cultural and political changes seen as increasing interdependence, integration and interaction between people and companies in disparate locations.
Globalisation in the economic, social and political fields has been on the rise since the 1970s, receiving a particular boost after the end of the Cold War. Many economists believe globalisation may be the explanation for key trends in the world economy such as:
- Lower wages for workers, and higher profits, in Western economies
- The flood of migrants to cities in poor countries
- Low inflation and low interest rates despite strong growth
Globalisation has accelerated in the last 20 years.
Increasing foreign investment can be used as one measure of growing economic globalization. Foreign direct investment (FDI) is a measure of foreign ownership of productive assets, such as factories, mines and land. The largest flows of foreign investment occur between the industrialized countries. However, in recent years the flows into and out of emerging countries has grown significantly.
Following the recent worldwide recession, world GDP fell more than1% in 2009. Some of the world's key emerging economies suffered sharp recessions during 2009, whilst others notably India and China, were able to maintain strong growth.
An excellent source of information on globalisation is the BBC pages dedicated to this issue.