Globalisation and Foreign Direct Investment

661 Words3 Pages
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. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. refers to the emergence of an international network of social and economic systems. With improvements in transportation and communication, international business grew rapidly after the beginning of the 20th century. Well known MNCs include fast food companies such as McDonald's . vehicle manufacturers such as General Motors, Ford Motor Company and Toyota, consumer electronics companies like Samsung, LG and Sony, Most of the largest corporations operate in multiple national markets. Strong markets require significant state and transnational intervention. To be sustained across time they also require stable social relationships and an environment of trust. Because of globalization, most of the countries of the world no longer concentrated on local markets. Their focus became on regional or even world markets The effects of Globalization are manifold, affecting various aspects of the world economy to bring about overall financial betterment. The Impact of Globalization influences businesses at varying degrees. Variations in the price and supply of labour the rise of cheaper workforce in the Far East has lead some businesses to moving their manufacturing abroad, cutting their overall costs. The improved levels in communication for example the Internet globally; this has allowed a lot of companies to outsource telesales and administration, reducing their cost. FDI The growth of FDI has accompanied the rise of globalisation. The benefits Investing overseas can
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