What is globalisation, and whatexplanations have been put forward to explain how it affects individuals andcommunities? In order to answer thisquestion you will need to reflect on the globalisation...

1
Globalization can be defined as inevitable integration of markets, countries and
technological advancement happening all across the world. Due to this the corporations and
the nation states are coming closer to each other defying the physical boundaries, to the
extent never before in the history of world making the technology, goods and
communications faster, cheaper and better. Globalization led to the production of goods,
services, ideas and culture on the world level scale imparting local edge with global thinking.
The globalization can occur at various levels: at goods and services level, market level
and at production level. The globalization at market level pertains to the expansion and
reaching out to the businesses and production facilities across the world. The globalization of
markets means that the expansion and access of businesses to all over the world to fulfill the
needs of the customers globally. This has become feasible because of rapid advancement in
the technology in every country. Owing to the IT revolution which has swept the world and
with the advent of internet, it has become possible to source material, procure technologies
and outsource the non-competencies to reduce cost and increase the focus on core
competencies to the any country in the world. Due to these phenomena, many big markets
have merged and come up as the single market according to the customers’ demands to the
proximity of the market.
Although still many differences exist between countries, but the tastes and preferences
are coming to the similar levels owing to intermingling of markets owing to the advanced
communications. Many firms are going global, not only to reach customers but to leverage
the raw material source, labor cost arbitrage and knowledge pool of the destination country.
Firms which are going for global strategy transfer the skills and products derived from the
apparent competitive advantage to the destination countries with restricted customization
according to the local preferences. Firms which pursue multi-domestic tactics standardize
their products and services customize their product offering, marketing strategy, and business

2
strategy to national conditions. Firms which pursue global strategy focus on cost benefit
which are due to learning curve and location advantages.
Not only the economic advantage but investing in the foreign country would provide
the chance of incorporating foreign management experience which was needed for the firm in
order to gain the status of globally integrated corporation. Companies all across the world are
increasingly taking advantage of the fact that logistics and communications have become so
fast that it is important to actually have subsidiaries across the world in order to make the
global presence felt to the consumer.
Globalization of products also made it possible for the companies to reach out for the
new customers because of alignment of the preferences and acceptance of foreign products
across the world. More and more companies were sending their representatives to understand
the new markets and product requirements in terms of tastes and standards.
There are three major forces that bring globalization into effect to affect all quarters of
economy, politics and social fabric of any particular country. Although these forces differ in
their terminology with respect to various authors or economists but are similar as far as broad
perspective is concerned.
1. Liberalization: This pertains to opening up of world economies to mutual trade beyond
borders to facilitate international trade and capital movements
2. Technological Advancement: Accelerating technological process and the advent of the
information society with the avalanche of technology taking precedence over other
modes of operation across the globe making it possible to communicate and coordinate
through countries and time-zones.
3. Deregulation: This concerns to state being limited to welfare...