What Is Globalization?
Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. Globalization is the process by which the economies of countries around the world become increasingly integrated over time. This integration occurs as technological advances speed up the trade of goods and services, the flow of capital, and the migration of people across international borders. No other country has played as significant a role in reconnecting the world as the United States, itself an early product of modern globalization. Globalization is the shift towards a more integrated and interdependent world economy and it is the process by which the world economy is becoming a single interdependent system. It has two components:
The globalization of markets
The globalization of production
Globalization refers to in which activities of large number of business enterprises is carried out in many different locations across national boundaries. It is much more than just importing or exporting from one country to another. True globalization involves one firm procuring form, manufacturing in, and selling in many different countries. There has been an increasing trend in the world towards globalization is characterized by trends such as: •
Increased trade across national boundaries.
One company having subsidiary companies and plants in many countries. •
One company procuring material required from multiple countries. •
One company selling its products in many different countries. •
Growth of joint ventures and technical collaborations between companies from different countries. •
Lowering of trade barriers and simplified import and export...
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