Business, Legal & Accounting Glossary
The worldwide movement toward economic, financial, trade, and communications integration.
Globalisation implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers. However, it does not include unhindered movement of labour and, as suggested by some economists, may hurt smaller or fragile economies if applied indiscriminately.
In business, globalisation is a term used to describe the spectrum of changes occurring in societies and economies as good and services, capital, people, technology, and ideas flow more freely across international borders. The World Bank has defined globalization in terms of economic freedom, irrespective of national borders. Globalisation is thus closely associated with laissez-faire capitalism. Sometimes globalization is used to refer more narrowly to the flow of goods and services. Another name for this aspect of globalisation is trade liberalization. Contrary to popular belief, in some respects, globalisation is not at its peak. In the decades prior to WWI, international trade’s percentage of global GDP was higher than it is today, so that period is sometimes called the first era of globalization. More idealistically, globalization is also sometimes used to describe the notion of a coming global village, with a single international culture. The term internationalisation is sometimes used interchangeably with globalisation.
Name for the process of increasing the connectivity and interdependence of the world’s markets and businesses.
This process has speeded up dramatically in the last few decades as technological advances make it easier for people to travel, communicate, and do business internationally. Two major recent driving forces are advances in telecommunications infrastructure and the growth of the internet. In general, as economies become more connected to other economies, they have increased opportunity but also increased competition.
Thus, as globalization becomes a more and more common feature of world economics, powerful pro-globalization and anti-globalization lobbies have arisen.
The pro-globalization lobby argues that globalization brings about much increased opportunities for almost everyone, and increased competition is a good thing since it makes agents of production more efficient. The two most prominent pro-globalization organizations are the World Trade Organization and the World Economic Forum.
The World Trade Organization is a pan-governmental entity (which currently has 159 members) that was set up to formulate a set of rules to govern global trade and capital flows through the process of member consensus, and to supervise their member countries to ensure that the rules are being followed.
The World Economic Forum, a private foundation, does not have decision-making power but enjoys a great deal of importance since it has been effective as a powerful networking forum for many of the world’s business, government, and non-profit leaders.
The anti-globalization group argues that certain groups of people who are deprived in terms of resources are not currently capable of functioning within the increased competitive pressure that will be brought about by allowing their economies to be more connected to the rest of the world. Important anti-globalization organizations include environmental groups like Friends of the Earth and Greenpeace; international aid organizations like Oxfam; third world government organizations like the G-77; business organizations and trade unions whose competitiveness is threatened by globalization like the U.S. textiles and European farm lobby, as well as the Australian and U.S. trade union movements.
The globalization strategy was paying off tenfold and we were going to be even bigger than I hoped we would be.
The increased globalization was encouraging but we had noticed that the capital was not being globalized, only the labor and warehouses.
The technological advancements made by Google in internet access and internet speed provided the foundation for the globalization of the company as it moved offices throughout the world and provided its service in over 70 different languages.
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infant industry argument
New Economy
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This glossary post was last updated: 22nd November, 2021 | 0 Views.