Impact of Globalisation on Economy : Report

Added on - 22 Jul 2020

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THE IMPACT OFGLOBALISATION
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1GLOBALIZATION.........................................................................................................................1CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
INTRODUCTIONGlobalisation has played an important role in developing business all around the world. Ithas impact on society and people in both positive and negative ways by providing easy access toevery product and services either online or at their door step. This has made life easy though hasincreased competition amongst small and medium enterprises which has affected economygreatly. Globalisation has brought benefits in developed countries as well as negative effects.The positive effects include a number of factors which are education, trade, technology,competition, investments and capital flows, employment, culture plus organisation structure. Thenegative effects are increased competition, imbalances in economies and wider gap betweenclasses of people.GLOBALIZATIONThe term globalisation refers to making the world one single market where all types ofservices and products are easily available. Because of globalisation, the economies of the worldare being increasingly integrated, example: mobile phones and internet have brought peoplecloser (Cohen, 2018). The world is becoming a smaller place. Work can be outsourced to anypart of the world that has an internet connection because of improvements in traffic infrastructureone is able to reach one's destination in a short time. Globalisation through globalcommunications, global markets and global production have promoted and facilitated by a fourtharea of global activity in relation to money (Dermody and et.al., 2018).Globalisation is opening doors for various small and medium enterprises to export theirfinished products and import any sort of raw materials. It is providing individuals a large marketby marking market efficient thereby raising the space of competition. There are many benefitsand associated risks of globalisation which tends to be affecting the society. It increases foreignexchange between countries and thus raises the general living of people. The overall concept ofglobalisation refers to making the world a market place where people all over the globe can buyand sell products and services thereby enhancing their living (Asongu and De Moor, 2017).Every single and independent manufacturer can produce identical products and sell to consumersglobally.The growth rate of globalisation has increased tremendously as world trade ratio israising. In addition, the foreign direct investment has increased in both developing anddeveloped countries (Hopper, Lassou and Soobaroyen, 2017). With globalisation, moreconsumption is taking place of goods of similar taste and identity produced by a single
manufacturer all over the world. Newer form of technology and new ways of production hasenhanced growth of particular organisation as well as world economy. New concepts have beenraised which has brought greater benefit to human kind. It has brought in liberalisation of tradewhich implies reduction of barriers between countries for purpose of trading. Various tradebarriers and tariffs levied by government have been reduced so as to continue trading betweencountries which will bring in foreign investment (Purnell, 2018).Globalisation has becoming an important source of travelling by enforcing people tomove out and know about the trends going around the world (Hopper, Lassou and Soobaroyen,2017). People travel from one place and country to different countries. Each part of globalisationis bringing in new knowledge and technology into the country as well as FDI which has enhanceeconomic growth of UK (Purnell, 2018). The growing international market though poses threatsfor small and developing countries to compete with developed markets. This has not onlyincreased living standard of people but it has also affected economic system in both positive andnegative ways. It has brought in new economic reforms and regulations which has affected UKeconomy by enhancing financial system and reducing risk.Globalisation has brought in development of technology and science as the world is nowbecoming a global village. The use of internet and mobile phones has made communicationbetween various countries an easy task which tends to provide solutions fast and handy.Integration of people, their cultures and different religion is all because of increasingglobalisation. It has also affected education system by greatly contributing towards enhancementof technology (Purnell, 2018).
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