Globalisation: Some Key Points

26.MAY.06

Globalisation has different impact throughout the world economy. Globalisation brings with it economic restructuring at both the local and global levels.

Globalisation makes it easier for us to purchase products from another country or many different countries.

Global pressures facilitate the widening of markets and increase competition. {{more}}

Globalisation impacts on technological innovations and new forms of production.

Globalisation impacts on all enterprises, including those in the public sector and regardless of the nature of their operations.

Globalisation of the world’s economy is characterized by the amount of trade which occurs between countries, the movement of Foreign Direct Investment (FDI) and the growth of transnational corporations and changes in where production is located.

Globalisation is driven by factors such as the free market ideology which has led to the dismantling of trade barriers allowing the opening of trade borders enabling the movement of goods and services throughout the world economy; technology transfers; technological advances improving communication and transports thus lowering costs in these areas; the shifting of the economic dominance from the developed to developing countries.

Globalisation impacts employment throughout the world. It affects the type of work, the demands for skills and the distribution of employment opportunities within and between countries.

The process of globalisation has led to general shifts from manufacturing to service industries now considered to the fastest growing industries throughout the world.

Globalisation will force companies to adapt to changes in the economic environment. The companies that move first will have the best chance of using these changes to bring about competitive advantages.

• Submitted by the Centre for Enterprise Development Inc. (CED) a non-profit company that provides business development services to the local private sector.

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