Business organisation and environment

Table of Contents

1. Topic pack - introduction
2. 1.1 Nature of business activity - notes
3. 1.1 Nature of business activity - questions
4. 1.2 Types of organisation - notes
5. 1.2 Types of organisation - questions
6. 1.3 Organisational objectives - notes
7. 1.3 Organisational objectives - questions
8. 1.4 Stakeholders - notes
9. 1.4 Stakeholders - questions
10. 1.5 External environment - notes
11. 1.5 External environment - questions
12. 1.5 External environment - simulations and activities
13. 1.6 Organisational planning tools - notes
14. 1.6 Growth and evolution - notes
15. 1.7 Growth and evolution - questions
16. 1.7 Growth and evolution - simulations and activities
17. 1.6 Change (HL only) - notes
18. 1.9 Globalisation - notes
    1. Globalisation defined
    2. The drivers of globalisation:
    3. The impact of globalisation on business
    4. Multinationals
    5. MNCs from Emerging Nations
    6. Impact of multinational companies on the host country
    7. Regional economic groups / blocs
    8. The World Trade Organisation (WTO)
    9. The Stages of Economic Integration
    10. Regional trading bloc examples
    11. The European Union - using the web
19. 1.9 Globalisation - questions
20. Print View

Globalisation defined

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.

The concept has been referred to as 'the shrinking of time and space'.

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 15 years. During a period of relatively strong economic growth, world exports as a share of GDP increased from under 20% in 1994 to over 32% in 2008, and whilst global trade fell back in 2009, as a result of the global slowdown, but bounced back in 2010.

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.