The New Rules of Globalization

This report highlights the importance of globalization in developing and prospering world economy. It bridges the gap between developed and developing nations, linking people, resources, and technology for mankind's development. The report emphasizes that forces like political, economic, social, technological, and legal factors contribute to the development of global economy. Strategic alliances and the rise of capitalism in emerging markets are also explored as models to analyze deepening trade relations.

THE NEW RULES OF
GLOBALIZATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Forces that contribute in development of global economy.........................................................1
TASK2.............................................................................................................................................2
Impact of global forces on organisations....................................................................................2
TASK 3............................................................................................................................................2
Models and framework to analyse deepening trade relations.....................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
One of the key feature of contemporary world is globalisation. It is considered as a
process to integrate and exchange products, views, thoughts and ideas of different nations. The
report highlights importance of globalisation to develop and prosper world economy. It bridges
gap between developed and developing nations so that link people, resources and technology in
favour of development of mankind.
TASK 1
Forces that contribute in development of global economy
Nowadays there is immense increase trade and commerce activities taking place between
different nations' territorial boundaries. It has helped to exchange products and services along
with integration of their culture and ethics (Robertson, 2012). Following are forces responsible
to develop global economy:
Political factors
According to this force, every country has its own political scenario which determines
intensity of government intervention in business activities. Political stability in an economy plays
crucial role in increasing global activities and providing profitability to the country.
Economic factors
The economic scenario of a country is determined through general taxation policies, trade
cycles and industries thriving in its premises. Investors of multinational companies are interested
to invest their capital in global economy so that it increases their profitability.
Social factors
Exchange of philosophies, ideology, art and culture at global level drives people to
explore global economy. It helps to connect individuals with each other and understand their
culture. The cultural implication, demographies social lifestyle and domestic structure are
studied and evaluated.
Technological factors
Inculcation of updated and advanced technology helps to improve quality standards of
producing products. This factor plays crucial role in making methods and procedures faster and
comfortable to execute (Hopkins, A.G., 2011). There is technological change happening every
minute and global economy welcomes this advancement.
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Legal factors
Every country has its own legislation, certain rules and regulations that should be abided
and respected by individuals and organisations. It helps to make optimum utilisation of resources
without hampering their productivity.
TASK2
Impact of global forces on organisations
Proper evaluating of global environment analysis helps organisations to execute their
operations effectively in global economy. It helps to sustain their marker position in better
manner and promotes globalisation. There is great impact of global forces on different
enterprises and entities functioning in international market, which are as follows:
 It is a general belief that political stability in the country reflects there is larger scope of
trade expansion. Organisations are provided systematic approach to handle issues in
effective manner.
 Multinational companies are interested in increasing profitability and establish brand
image in global territories (Zoomers, 2010). Favourable interest rate and economic trends
help organisations to grow and prosper in better manner.
 As mentioned earlier every country has its own culture implications, the business
enterprises are required to adopt and respect them. It develops strong relationship
between people, institutions, resources and environment.
 Another impact of global factor is exchange of new and advanced technology. It helps to
develop infrastructural facilities and reduces time required to perform various activities.
There is proper utilisation of resources and individuals are able to improve their skills and
abilities in better form.
TASK 3
Models and framework to analyse deepening trade relations
There are various models used to improve international trade relations in this highly
competitive world. The rise of capitalism in emerging market has increased their participation in
trade and commerce activities. According to this model, world economies like India, Brazil and
Japan earlier used to follow socialism principle. But with the course of time, these countries are
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also showing interest in investing funds for international trade and commerce. Now, profit
maximization is their prime objective to make proper use of funds and resources.
Another framework used to analyse deepening trade relations at global level is through
strategic alliance. The international trade take place with execution of joint ventures, mergers
and acquisitions of various organisations (Michie, 2011). The companies are interested to share
their assets ad liabilities so that it reduces burden of loss incurred. It benefits people and
organisations to explore and develop their resources collectively. Through these alliances people
are able to determine polices and plans essential for execution of resources. Many countries offer
different opportunities that a multi business strategy can be compelled for implement better
policies.
CONCLUSION
The current report determines significance of globalisation in growth and development of
countries involved in this process. There various forces like political, economical, social,
technological and legal factors which play significant role in developing global economy.
Models like strategic alliance and rise of capitalism in emerging market helps to depens
international trade relations.
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REFERENCES
Books and Journals
Robertson, R., 2012. Globalisation or glocalisation?. Journal of International Communication.
18(2). pp.191-208.
Hopkins, A.G., 2011. Globalisation in world history. Random House.
Zoomers, A., 2010. Globalisation and the foreignisation of space: seven processes driving the
current global land grab. The Journal of Peasant Studies.37(2).pp.429-447.
Michie, J. ed., 2011. The handbook of globalisation. Edward Elgar Publishing.
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