Globalisation

• Globalisation refers to the process of interaction and integration among people, companies, and governments worldwide. This process is driven by international trade and investment and aided by information technology.

• It has developed due to several factors, such as advancements in transport, communication, and liberalisation of trade and capital markets, allowing businesses to expand globally.

• In the business world, globalisation is seen through the lens of trade and the global market. Businesses can reach worldwide markets, source goods and services internationally, and interact with international customers and partners.

• The impacts of globalisation on business can be both positive and negative. On the positive side, it can lead to increased sales and profits, new market opportunities, broader access to new technologies and resources.

• On the downside, globalisation can also lead to increased competition, including from companies in low-cost countries, potential loss of jobs in domestic market, and risk of business failure in new markets.

• Businesses must adapt and develop strategies to succeed in the global market. They will need to consider differences in culture, language, and business practises.

• Strategies can include global pricing, product adaptation, global promotion strategies, and choosing the right international distribution channels.

• Economic events in one part of the world can influence markets and businesses in other parts, thanks to globalisation. Examples include economic crises, changes in commodity prices, or shifting political landscapes.

• The growth of multinational corporations (MNCs) is a significant aspect of globalisation. These businesses operate in several countries, affecting local economies, influencing governments, and having considerable environmental and social impacts.

• Ethical and sustainability issues are becoming more significant due to globalisation. Businesses must ensure they adhere to ethical labour practises, respect local cultures, and limit their environmental impact.

• Globalisation has contributed to the emergence of international business standards and regulations. Businesses operating globally should, therefore, be aware of international laws, standards, and best practises.

• Understanding the global business environment is key to managing the impact of globalisation effectively. This requires businesses to stay informed about global trends, monitor international market conditions, and be flexible in adjusting their strategies where necessary.