Scribd
Upload
36 views1 page

Meaning and Definition of Globalization

Globalization refers to the integration of countries into a single global market and the removal of trade barriers between nations. It means developing countries joining the world economy. For companies, it means operating manufacturing locations worldwide and competing with foreign companies domestically. Globalization occurs at four levels - world, country, industry, and firm - with world level being the highest and most integrated, and firm level referring to individual multinational companies.

Uploaded by

Sonia Lawson
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
Download as docx, pdf, or txt
36 views1 page

Meaning and Definition of Globalization

Globalization refers to the integration of countries into a single global market and the removal of trade barriers between nations. It means developing countries joining the world economy. For companies, it means operating manufacturing locations worldwide and competing with foreign companies domestically. Globalization occurs at four levels - world, country, industry, and firm - with world level being the highest and most integrated, and firm level referring to individual multinational companies.

Uploaded by

Sonia Lawson
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1/ 1

Meaning and Definition of Globalization:

In simple economic terms, globalization refers to the process of the integration of the world into one huge market. Such unification calls for the removal of all trade barriers among countries. Even political and geographical barriers become irrelevant. For developing countries, globalization means integration with the world economy. At the company level, globalization means two things: 1. The company commits itself heavily with several manufacturing locations around the world and offers products in several diversified industries. 2. It also means the ability to compete in domestic markets with foreign competitors. In the popular sense, globalization mainly refers to multi plant operations.

Levels of Globalization:
1. World level Globalization: It is the highest level at which globalization is perceived. Globalization process begins with international economic, social and political relations between the countries. 2. Country Level Globalization: There are various inter linkages through which a large number of cross border transactions are generated. A systematic record of these transactions with rest of the world is recorded by all countries in the form of balance of payments. The major international transactions include import and export of goods, services, interests and dividend payments, foreign loans and investments, commercial borrowings and transactions with the IMF. 3. Industry Level Globalization: Within a country, a few specific industries might be operating at the global level whereas others may be home oriented. Such industries are those which have high degree of technological advancement and strong competitive advantages on the basis of which they are able to compete in the world market. 4. Firm Level Globalization: Within an industrial segment, individual firms can also operate globally. These firms can be foreign collaborations or domestic firms having global operation. These firms often have high level of technological development, strong competitive advantages, international outsourcing connections and access to foreign markets.

You might also like