International Business Essay Example

In present time and age globalisation has gained much more importance then what it had about thirty years ago. No doubt globalisation started ever since human being existed on this planet, but it is observed that in this era geographical boundaries has a very little part to play, when it comes to trade, culture, travelling and communication. Effects of this integration of different economies will have its outcomes and many of them can be seen already. In most countries however due to Globalization one can see the growing concern regarding employment and income distribution (Lee & Vivarelli 2006, p.168). Based on qualative and quantative analysis this paper would come with the conclusion to suggest wether globalisation is beneficial for everybody or the complete opposite.
Globalisation means increasing flows of trade, finance and factors of production across the border, with the help of faster transportation and effective communications set up. It is globalisation which is compeletly responsible for making this world a global village. With globalisation, international bonds develop not just amongst specific groups of countries but across a wide global network in which factors of production or finished goods can move freely. The second era of globalisation that we are now living has come as a outcome of a numerous factors, not only because of of internet (which has allowed the speedy flows of massive volumes of information) but also because of intense changes in institutional environments. The economic ideas of the 1970s promoted moves towards financial liberalisation and deregulation within a large number of OECD countries during the 1980s and 1990s, the policy approaches of the Bretton Woods institutions were also modified with the Washington Consensus being built upon the promotion of economic severity, privatisation and liberalisation Stiglitz and Gualerzi (cited in Baddeley 2006, p 392). Furthermore, Baddeley claims that this deregulation has made the