The Economic Aspects Of Globalization

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Globalization refer to the process that deepens and broadens the relationship among countries and integrates them socially, economically and politically. Typically it means “a process driven by inter-national trade and investment and aided by information technology”(Boudreaux,2008:1). Historical evidence of Globalization is prominently found in 19th century when British pioneered the idea of “liberalism” that centered on the concept of trade unrestrained by political borders. Britain played the main role in spreading and popularizing the idea of free trade among other western countries that ultimately contributed to today’s globalization. Among the several dimensions of globalization only it’s economical aspect and effects on business will be discussed in this paper.
Concept of Globalization
Since 1960 the term globalization had been used to signify a particular process, economical condition, market system, driving force or an era in the horizon of cross border activities. Globalization is an driving force that accumulates all countries under a common network of economical and trading system. It can be referred as a set of social processes that transform a country’s individualistic identity to a global entity. Globalization refer to the interdependency among the countries in a way that incidents of foreign countries can have footprint on local incidents or vice versa. Globalization widens the communication among countries, enlarge the market and
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