DEFINE GLOBALISATION? EXPLAIN THE NEED FOR GLOBALISATION?
Meaning: - It is a process of global integration of products, technology, labour, investment, information and even cultures. In other words, globalisation is the process of integrating a country’s economy with the world economy with a view to exploit global opportunities for country’s growth.
Factors responsible for globalisation of business
1. Free Trade: -In recent years, there have been efforts by various countries to reduce the number and level of trade restrictions i.e. to achieve free trade country should remove tariff duty and quota limits should be avoid.
2. Setting up of W.T.O: - The world Trade Organisation has been set up which is made up of countries committed to the principle of freeing world trade from restrictions.
3. Free Trade blocks: - These are groups of countries (often geographically grouped) that have arranged to trade with each other without restrictions. E.g. (NAFTA) and (ASEAN) the members of the European Union (EU) also trade freely amongst themselves.
4. International banking and revolution in information technology have a big push to globalisation.
5. International education and tourism facilitates globalisation of cultures and languages.
6. Increasing demand of consumers for world class products and services.
7. Growth of multinational countries i.e. the business organisations having their headquarters in one country but operating branches, factories and assembly plants in other countries.
