PRINCIPLES OF GLOBAL BUSINESS MANAGEMENT (MNB370-1)

LEARNING UNIT 1: CHAPTER 1: GLOBALISATION AND INTERNATIONAL BUSINESS 1.3 DEFINING GLOBALISATION Globalisation refers to the increasing integration of production, development and communication amongst nations on a worldwide/international scale. Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. Globalisation is the process by which businesses or other organisations develop international influence(s) or start operating on an international scale. The key interlinked factors influencing the tendency towards globalisation are as follows: - GATT (General Agreement on Tariffs and Trade (GATT) Definition: Multilateral international trade treaty first created in 1947 and frequently amended. ... GATT was active under that name from 1947 until 1994, when WTO was founded. The records of GATT are now managed by WTO in Geneva) and WTO (The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments.) - Structural shift in the world economy - Integration and operational velocity of financial markets - Diffusion of computer-based technologies and information systems - The “agile” corporation - Competitiveness based on supply chains Perspectives of globalisation Culture- process of transformation in the spatial organisation of social relations and transactions that generate flows and networks of activity. Economic- the growing, interdependence of countries worldwide through the increasing volume and variety of cross-boarder transactions in goods and services, international capital flows and technological advances