Globalization

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//Before writing about the use of technology by the Multinational Corporations, for expansion of the business, we will write about the 'Importance of Globalization' and its role in expansion of business in the global market. It will assist in understanding the different characteristics of Globalization useful for a nation.//

Globalization

Globalization refers to the integration of the economies of the countries all over the world into the world economy, particularly through trade and financial flows. Most of the times, the term also refers to the movement of people (labor) and knowledge (technology) across international borders. The term "globalization" reflects technological advances that have makes the transactions to be quicker and easier. It is the result of human innovation and technological process.

The forces of globalization and liberalization have forced the governments of various countries to change their policies and thus there is an increasing awareness to adopt international corporate and business level strategies.

The crises in the emerging markets have made it quite obvious that globalization does not come without risks. Such risks may come due to volatile capital movements and the risk of social, economic, environmental degradation. This may cause to bring changes in the policy to build strong economies and financial markets that will generate more rapid growth and reduce poverty.

Globalization is a process that holds 6 basic characteristics to a nation; namely STERIF S T→ Technological Gap E→ Entrepreneurial skills R→ Risk bearing I→ Innovation in the product F → Foreign exchange gap. Globalization offers greater opportunity to companies to tap in more markets in the world. It allows access to technology, more capital flows, marketing capabilities, cheaper imports and large export markets. But it does not always ensure that the benefits of efficiency are shared by all. Thus, the countries must be prepared to implement the policies needed.

//Above, we discussed about the rationale and characteristics of Globalization. Now, we will discuss about the importance of technology in the international business. It will support in analyzing the economic and business policies of a country regarding the 'Globalization of Business' and 'Role of Technology'.//

Technology is a kind of knowledge or skill used for employing and controlling the factors of ...