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When globalization is used in an economic context it refers to the reduction and removal of barriers in terms of trade facilities and investment policies between national borders in order to facilitate the flow of goods and services, capital and labor. The main cause of globalization is influenced from other, more developed, countries. It is a historical process that results from human innovation and technological progress. Globalization means adopting a global outlook in manufacturing, marketing, financing, human resource management and all other areas of business. The factors that led to the development of globalization are enlisted below:
• Due to large flow of funds between the countries the national capital markets are growing into global capital markets.
• There is an increase in similarities of countries in terms of infrastructure, marketing strategies and distribution centers.
• Technological restructuring has reshaped the national market into a global market.
• There has been an increase in competition due to various emerging domestic markets into global markets.
• Growing international competition. In order to survive in the global market the firms should have enough efficiency to improve the operations, reduce costs and also improve the quality.
Article by Anisha Dutta
She is a content evangelist who believes that the Science of today is the Technology of tomorrow.
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