Globalisation

Globalisation: The increased integration and interdependence of national economies; it involves increased international trade, increased inward investment and an increased role for global multinational companies. Reasons for greater globalisation of business: 

• The growth of free trade areas, such as EU & NAFTA, have reduced barriers to trade within their groups and mean that individual economies are becoming more closely integrated with each other. 
• Tariffs and other protectionist barriers have gradually been reduced in countries around the world, leading to an increase in world trade
• The WTO has been instrumental in bringing about a more integrated and interdependent global economy 
• Increased communication and improved transport have led to reduced barriers between countries and made global travel easier 
• The growth of large multinational firms creates increased opportunities for economies of scale, leading to lower prices for consumers
• Improved technology makes it easier to communicate and share information around the world 
• Improved mobility of capital.…