1
,MNB3701 EXAM PACK
Explain the phenomenon of globalisation.
Globalisation refers to the increasing integration of
production, development and communication amongst
nations on a worldwide/international scale. Globalisation
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 influences or start operating on an
international scale.
1. Identify the types and drivers of globalisation.
Globalisation is the growing interdependence of
countries worldwide through the increasing volume and
variety of cross border transactions in goods and
services, as well as international capital flows
Changes in political environments
- Can be credited with two developments namely:
Creation of global economic/trade regulatory bodies and
the collapse of communism
- Creation of economic/trade regulatory bodies included
General Agreement on Tariffs and Trade (GATT) in
1947served as a medium through which international
trade negotiations and arrangements were conducted and
2
, the World Trade Organization (WTO) in 1995- aids
international trade and safeguards the rights and
privileges of entrepreneurship, innovation and invention
- Collapse of communism allowed the spread of capitalism
and the trade liberalization across the globe
Changes in the technology environment
- Email and videoconferencing has made it easier for
multinational enterprises to communicate, transmit and
share large information and allows for discussion in a
virtual environment
- The Internet and the World Wide Web (WWW) provide
enterprises the opportunity to monitor and respond to
competition and provide consumers with products at
reduced prices.
- Company intranets and extranets enable for fast
distribution of large volume of information throughout
the organisation
Changes in the transportation, innovations
- Air and speed rail are some of the modern advances in
the field of transportation.
2. Clarify the implications of globalisation for
international business.
3. Identify emergent themes in discourses on
globalisation.
ACTIVITY 1.1
1. Briefly explain the history of globalisation,
highlighting the milestones in its evolution.
The evolution of globalisation is rooted in historical
events. Indeed, this was a forerunner of inter-regional,
3
, symbiotic trading arrangements between people,
countries and nation-states. It served as a catalyst to the
development of undeveloped countries, foreshadowing a
greater degree of regulated trade in these countries. But,
the real focus of the historicity of globalisation
concentrates on the advent and duration of slavery and
colonisation, as more countries fell under the political
jurisdiction of more powerful nations such as the United
Kingdom and France. This state of affairs persisted for
centuries; only the emancipation of slaves and the
liberalisation of these countries served as a stimulus to
further globalisation. The evolution of modern trading
and investment arrangements, with their corresponding
financial and capital operations, together with various
economic integrations, stemmed, it is argued, from this
emancipation process. Ultimately it also gave rise to
unprecedented political and economic alliances.
2. Explain how globalisation is changing, in consequence
of the efforts of anti-globalists.
The positive aspects of globalisation are the benefits of
economic integration, trade liberalisation, knowledge
transmission and diffusion, cultural stability, power
coalitions, globalisation and free markets and the
phenomenon of socio-political control, coupled with
improvements in world health care.
These affirmations are constantly being countered by the
antagonism emanating from the anti-globalists who argue
against the alleged benefits of globalisation. They do so,
citing the “impervious weaknesses” of globalisation as
evidenced by negatives such as the risks involved, the
inequitable apportionment of resources to the
disadvantage of poor countries, and the capricious
4
,MNB3701 EXAM PACK
Explain the phenomenon of globalisation.
Globalisation refers to the increasing integration of
production, development and communication amongst
nations on a worldwide/international scale. Globalisation
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 influences or start operating on an
international scale.
1. Identify the types and drivers of globalisation.
Globalisation is the growing interdependence of
countries worldwide through the increasing volume and
variety of cross border transactions in goods and
services, as well as international capital flows
Changes in political environments
- Can be credited with two developments namely:
Creation of global economic/trade regulatory bodies and
the collapse of communism
- Creation of economic/trade regulatory bodies included
General Agreement on Tariffs and Trade (GATT) in
1947served as a medium through which international
trade negotiations and arrangements were conducted and
2
, the World Trade Organization (WTO) in 1995- aids
international trade and safeguards the rights and
privileges of entrepreneurship, innovation and invention
- Collapse of communism allowed the spread of capitalism
and the trade liberalization across the globe
Changes in the technology environment
- Email and videoconferencing has made it easier for
multinational enterprises to communicate, transmit and
share large information and allows for discussion in a
virtual environment
- The Internet and the World Wide Web (WWW) provide
enterprises the opportunity to monitor and respond to
competition and provide consumers with products at
reduced prices.
- Company intranets and extranets enable for fast
distribution of large volume of information throughout
the organisation
Changes in the transportation, innovations
- Air and speed rail are some of the modern advances in
the field of transportation.
2. Clarify the implications of globalisation for
international business.
3. Identify emergent themes in discourses on
globalisation.
ACTIVITY 1.1
1. Briefly explain the history of globalisation,
highlighting the milestones in its evolution.
The evolution of globalisation is rooted in historical
events. Indeed, this was a forerunner of inter-regional,
3
, symbiotic trading arrangements between people,
countries and nation-states. It served as a catalyst to the
development of undeveloped countries, foreshadowing a
greater degree of regulated trade in these countries. But,
the real focus of the historicity of globalisation
concentrates on the advent and duration of slavery and
colonisation, as more countries fell under the political
jurisdiction of more powerful nations such as the United
Kingdom and France. This state of affairs persisted for
centuries; only the emancipation of slaves and the
liberalisation of these countries served as a stimulus to
further globalisation. The evolution of modern trading
and investment arrangements, with their corresponding
financial and capital operations, together with various
economic integrations, stemmed, it is argued, from this
emancipation process. Ultimately it also gave rise to
unprecedented political and economic alliances.
2. Explain how globalisation is changing, in consequence
of the efforts of anti-globalists.
The positive aspects of globalisation are the benefits of
economic integration, trade liberalisation, knowledge
transmission and diffusion, cultural stability, power
coalitions, globalisation and free markets and the
phenomenon of socio-political control, coupled with
improvements in world health care.
These affirmations are constantly being countered by the
antagonism emanating from the anti-globalists who argue
against the alleged benefits of globalisation. They do so,
citing the “impervious weaknesses” of globalisation as
evidenced by negatives such as the risks involved, the
inequitable apportionment of resources to the
disadvantage of poor countries, and the capricious
4
