Globalisation

Introduction to Globalisation

Globalisation impacts the world today in many ways. Be it economically or politically. As such globalisation is defined as a process where countries are interrelated by political issues, cultures, trade, transport and economical trading.

To elaborate, globalisation is often expressed as the action of the current and fast process of global economic, political and social integration. Globalisation strengthens global relationships as they connect countries and people with the rest of world through technological advances on communication and transport. It is now possible to conduct business internationally and be updated on new events in other places. Globalisation makes the world smaller in the sense that it is now interconnected.

Case for Globalisation

As mentioned, the world is now interconnected. Due to technological advances in transport, people are now able to travel abroad with ease. In addition, getting information is no longer tedious with the invention of computers and internet. Technological advances in transport and communication has also seen a rise in companies bringing their operations overseas and internationally. This has seen a rise in global trade as more companies are venturing overseas, opening up new markets in the process (Nanda, 2008). In this process of doing so, companies now have a bigger customer base which also means increasing revenue and profit.

Globalisation helps companies achieve economics of scale. Since companies have the capacity to operate and coordinate their operations overseas, it is possible to establish their workshops in countries where there is a lower cost of labour. This is especially useful for labour intensive industries such as apparel industry where large amount of workers are needed to produce clothing to satisfy the demand. This is seen in the case of Nike where it established factories in various countries such as Cambodia, Vietnam and Korea (Ferrell, Fraedrich & Ferrell...