Globalisation Name of University: Response to Question 1: Globalization as a process driven by trade and investment

RUNNING HEAD: GLOBALISATION
Title: Globalisation
Name of the Student:
Name of University:

1GLOBALISATION
Response to Question 1:
Globalization as a term s defined as the "process of interaction among the people, companies
and, government of different nations, a process driven by international trade and investment and
aided by information technology (Hopper, Lassou and Soobaroyen 2017)." Globalization has a
vast influence on the culture, environment, and political system and most importantly on the
economic condition in so cities around the world. The concept of globalization as understood in
the present term, though is a comparatively new one, the original concept has been there for
thousands of years before. In the ancient history, there are evidences of people and in later ages,
the companies have been identified to be selling as well as buying to each other in the lands of
great distance such as through the famed Silk Route that facilitated the connection between
China and Europe (Solarin, Al-Mulali and Sahu 2017.).
In the present business situation, the organizations get a high competitive advantage on the
business as it helps in fostering the interaction among the market across the globe. From the
cultural sense of perspective, globalization represents the exchange in ideas, cultures, sense of
values and political beliefs. Due to the spread of the ideas, attitude, economic and social ideas
beyond the national boundaries, globalization in the political, as well as economic level, shifted
the attention to intergovernmental organizations like World Trade Organisation (WTO) or
United Nations (UN). (Solarin, Al-Mulali and Sahu 2017.)
Globalization has in recent times changed largely has affected the business scenario over the
world. While the macrocosm is the international business scenario, the microcosm is the
domestic business that is confined in one particular geographical area but plays a vital role in the

2GLOBALISATION
global economy. While globalization has increased various prospects of expansion in business,
for the domestic small business, it has been affecting the business owners as to how they can
continue to grow as well as thrive in a competitive market edge.
One of the most important impacts on the domestic business of globalization is the access to the
global market and gaining knowledge about the global trend and market demand (Coker 2014).
Thus, a local business can achieve a global orientation through its connections. This has the
possibility of increasing at a massive rate the revenue of the domestic business. However, one ill
effect of globalization is the mass importing of cheap rated products from other countries. The
average of the customers does not judge the quality of the product but leans towards the cheap
products. This causes a loss in the indigenous market that requires high production cost and thus,
accelerated revenue for their product. Globalization has also been affecting the domestic
business even in the developed countries that a vast section of the task is being outsourced to the
developing countries that has created a vacuum in the employment of these regions. However,
the globalization in the developing nations affects positively the domestic tour and travel
companies as the knowledge of various lands are now accessible to any country at any time (Du
Plessis, Varottil and Veldman 2018).
https://www.bizjournals.com/boston/news/2020/02/04/with-new-150m-globalization-partners-
could-be.html
New York Business Journal-04-Feb-2020