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Speaking of globalisation in layman terms, it refers to the expansion of ideas, knowledge, information, products, and services around the world. In a business context, Globalisation defines interconnected economies that are characterised by open trade, free Capital movement across nations, and easy access to foreign resources in order to optimise returns and benefits for the common good.
The convergence of cultural and economic systems is the driving force behind it. Increased engagement, integration, and interdependence among states are encouraged by this convergence. The globe gets more globalised when countries and areas become increasingly connected politically, culturally, and economically.
Globalisation is a well-established phenomenon. For a long period, the global Economy has become increasingly intertwined. However, the process of globalisation has intensified in recent decades due to a number of factors. These factors are as follow:
Globalisation allows countries to gain access to lower-cost natural resources and labour. As a result, they are able to make things at a lesser cost that can be marketed internationally. Globalisation proponents claim that it benefits the globe in a variety of ways, including the following:
Many proponents see globalisation as a means of addressing Underlying economic issues. On the other hand, critics regard it as growing global inequality. The following are some of the criticisms:
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These companies carry out their business and operations in different parts of the world. It exists because of globalisation. Apple, Microsoft, Accenture, Deloitte, IBM, TCS are a few examples of MNCs in India.
An intergovernmental organisation is a body controlled by international law that is made up of more than one national government-linked by formal treaties with the purpose of handling/serving shared interests. Organisations such as the North Atlantic Treaty Organization, the United Nations and the World Health Organization are examples.
Many nations throughout the globe have signed treaties or implemented trade policies to make international investment and commerce simpler. Free Trade Agreements of India, Agreement establishing the African Development Bank are a few examples of intergovernmental treaties.
Globalisation's promotion of more open borders and free commerce has both positive and negative impacts on the economy and people. It is an ongoing trend that is altering and maybe slowing down. Individuals, businesses, and governments must evaluate all sides of the globalisation problem in today's post-pandemic world and make decisions accordingly.