This refers to the integration of “the domestic economies with the world and the inevitable consequential increase in economic interdependence of the countries through trade, financial and investment flows, freer factor movements and exchange of technology and information.” (Ogbabu & Ameh, 2012, p.49). This demonstrates how countries are coming together as one big economy, in order to make trading globally much easier. It builds up economic efficiency, creates jobs, and lowers consumer prices, increases choice and economic transfer’s functions. “Using
1. Introduction The speed at which knowledge is shared is rapidly increasing in today’s global economy and lets the world move closer together. One of the key drivers in this process is global trade: Importing and exporting goods and services is becoming more important, not only for global players, but also for countries, which seek to establish free trade agreements with other nations to import and export as effectively as possible. Erixon held that “Every country with a stake in world trade is now negotiating bilateral free trade agreements”, describing the current demand such contracts (Erixon, 2013, S. 18). Free trade agreements are pacts made between two or more countries with the main intention of increasing trade, which essentially contributes to growth and more jobs in an economy.
THE IMPACT OF MERGERS ON THE COMPANY AND THE SHARE PRICE Introduction: The most of the businesses across globe try to increase their financial stability and strengthen themselves by expansion. There are two ways of expansion been widely recognised to increase their operational excellence and gain substantial profits. Internal Expansion, by implementing new technologies, altering the course of operations, raising work performance, and launching new lines of products or services. Business expansion via internally will grow gradually, however the other method of External Expansion has greater impact than the other. The powerful external expansion occurs through merger, acquisitions, takeovers, amalgamations and dramatically supporting the globalization
The relationship between developed and developing world also boosts up. This is where the term Globalization intervenes, Globalization is actually the amalgamation of social, cultural and economic aspect, the process in which businesses make worldwide influence and start their operations internationally. Globalization has increased since Industrial Revolution and has led to cross-borders communications and joint ventures. The common characteristics that societies tend to develop as they become modern may vary from one form of modernization theory to another but generally, all assume that institutional structures and individual activities become more highly specialized, distinguished, and unified into social, political, and economic forms characteristic of advanced Western societies.
This increase can be mainly attributed to globalization and multinational corporations. It also follows the trend of development of the global economy. By looking at data provided by the World Trade Organization, it is possible to calculate the percentage of total merchandise increase in world export and import. Table 4.1 shows the results
How does the globalization influence the international business? Globalization is primarily an economic phenomenon, involving the increasing interaction of national economic system through the growth in international trade, investment and capital flows. A rapid increase in cross-border social, cultural and technological exchange is part of this globalization phenomenon. Globalization has impacted the present world in numerous ways. These are: reduction of trade barriers permitting free flow of capital and services across national frontiers; creation of environment conducive to free flow of capital; formation scenario allowing free flow of technology among nation states; and development thrust in which free movement of labour can take place
Globalization is the development of worldwide economy in which resources and products move fairly across national borders. It is also a process of integration among people, companies, and governments of different countries, which is usually driven by international trade, investment and aided by information technology. Both developed and developing countries are taking part actively in globalization process but both countries reacted differently in globalization. This process has the positive and negative effects on employment, culture, education and knowledge, market competition, economic, wealth and human physical well-being in societies around the world. Employment and Poverty The outsourcing of services and manufacturing to developing countries have provided more job
One of the most important forces that drive globalization is technological development. As technology advanced it gave the means to break the barrier of time and space which in its turn helped the national markets to integrate without difficulties as they could now collect worldwide information. Furthermore communication has become easier as well as faster through internet as it allows messages to be sent and be received at the same time with no delays. Transportation improved and lead to faster traveling as it reduced the time but it increased the efficiency of transferring. “Advocates and critics of globalization basically agree on the big forces behind it: a great freeing up of trade and capital flows; deregulation; the shrinking cost of communication and transportation; an IT revolution that makes it possible for companies to digitize the boundaries between design, manufacturing and marketing and to locate these functions in different places; and the availability of large numbers of workers and engineers in low-wage countries.” (Suzanne Berger 2005
Another traditional perspective considers this phenomenon as an on-going process of evolution whereby the firm increases its international involvement as a function of increased knowledge and market commitment. This is a sequential learning process of increased international involvement and gradual resource commitment. Recently, strategic process-based view of internationalization has emerged. Welch and Luostarinen defined the internationalization as "the process of increasing involvement in international operations", which can be treated both at the level of particular national economies as well as particular companies. In this context, Calof and Beamish define internationalization as "the process of adapting firm 's operations (strategy, structure, resources) to international environments".
MINI REPORT ARE THE BENEFITS OF GLOBALISATION GREATER THAN THE DRAWBACKS? In my perspective, globalisation is a practice by which the world is becoming progressively connected as a result of immensely increased trade and cross culture diversity. Globalisation enhances the use of outsourcing and offshoring products. The biggest companies are now not only national firms but are replaced by multinational corporations with subsidiaries in many countries. Its outcomes in our lives, being intertwined with people in all parts of the world via the food, the dress code, the music, the information we get and the ideas we hold.