Globalization involves the increasing interconnection of local and nationalistic economies across the world. It increases border movement of goods, people, technologies, ideas and services throughout the world. It lets other countries to join the rest of the world and become part of worldwide interrelatedness. As the biggest companies are no longer national firms but universal partnership. In my opinion, globalization is an important issue, as it allows countries to collaborate politically, socially and economically.
‘’Globalization is a widely and somewhat loosely used term intended to describe the recent and rapid process of intercontinental economic, social, and political integration. This worldwide integration allows people to communicate, travel and invest internationally, and helps companies market their produces widely, acquire capital human and material resources more efficiently share advanced technology, and enjoy economics of scale. While many benefit from globalization, others are hurt economically, some cultures may be harmed, and local environments may suffer.
But this is not the reality. The process of globalisation has not ended, it is not complete. Economic integration still needs to cover major distances. Although trade as a share of the economy has increased virtually everywhere over the last half-century, the increase is less impressive viewed by the hypothetical standard of complete global integration. Still a lot is needed to be done in international politics to allow smooth functioning of
Export is a function of international trade in which the goods produced in a country will be sent to another country for future sale or trade. Therefore, by selling of such goods and services it will increase the producing nation gross output. Export also one of the oldest form of economic grow, and occur on a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies. Another process involve in international trade is import, import is a process good or services brought from another country to another. Together with exports, imports also are the backbone of international trade.
Rapid advancements in technology, transportation and communication has increased the number of multinational enterprises (MNE) which have the flexibility and ability to place their enterprises and activities anywhere in the world. The fact is that a large volume of global trade today consists of international transfers of goods and services, capital and intangibles within an MNE group; such transfers are called “intra‐group” transactions. In such a situation, it becomes significant to establish the right price, called the “transfer price”, for intra‐group, cross‐border transfer of goods, capital, intangibles and services. Transfer pricing is the general term for the pricing of cross‐border intra‐firm transactions between related or associated
Essentially, globalization is about a close integration of countries and people worldwide which has been brought about by the freedom of mobility, development of various means of communication and elimination or at least reduction of barriers to the circulation of capital, knowledge and to a lesser extent people across borders. Globalization is an umbrella term for a complex series of social, political and economic aspects identified as an increasing interaction and integration between people and countries worldwide. This international interdependence is characterised by the continuously increasing international migration, elimination of obstacles of free trade and global economic integration which is one of the powerful driving forces of international businesses that move capital, goods and technologies, but also people across borders (Kritz and Zlotnik, 1992). International business refers to a wide range of business activities undertaken at the international level. Along with rapidly increasing globalization, international business has become a popular topic and has drawn the attention of business executives, government officials and academics.
(Mukherjee, 2008). Globalization became an increasingly used term with technological innovations-most significantly the World Wide Web or Internet- that made financial transactions and recordkeeping of international shipments quicker and easier. Thomas L. Friedman (2005) describes the "flattening" of the world economy through globalized trade, outsourcing, supply-chaining and political liberalization. The use of technologies allows businesses, such as large multi-national corporations, to maintain customers, suppliers and even competitors on a world-wide basis. The breakdown of businesses into components along its value-chain creates opportunities for multiple businesses located at various spots on the globe to participate in the production of a single good or service.
But, despite occasional disruptions, such as following the collapse of the Roman Empire, the degree of economic integration among different societies around the globe has generally been increasing. And, with the exception of human migration, global economic integration today is greater than it ever has been and is likely to intensify. The world economy has become increasingly more inter-reliant for a long time. However, in recent decades the process of globalization has gained momentum; this is due to a variety of factors, but important ones include improved trade, increased labor and capital mobility and improved technology. Drivers of Globalization Today many factors are affecting globalization, but the following seem to be the main engine driving the global integration.
With globalization, business has publicly become more competitive, responsive and service oriented. Sustainable business, growth of foreign investments and improved technology - these all together is possible only through Globalization and on the other hand terrorism, wars, inequality and environmental
MARKETING IN GLOBAL ECONOMY INDIVIDUAL EASSAY GLOBALISATION AND INTERNATIONALISATION OF PRODUCTS AND SERVICES HISSAM MALIK S00805291 ABSTRACT The aim is to deepen the knowledge of globalisation and internationalisation of products and services in the marketing context. As the years go by we can clearly see the emergence of a global economy. The different economies of different countries are integrating together and buying and selling is done internationally. Due to this there is faster communication, financial transactions, transfer of technology and even transport. In a global economy, such integration of markets is known as globalisation.