Assignment

of

Business Environment

Globalization describes the process by which regional economies, societies, and cultures
have become integrated through a global network of political ideas through communication,
transportation, and trade.

Economic globalization is the integration of national economies into the international

economy through trade, foreign direct investment, capital flows, migration, the spread of
technology, and military presence.

The barriers to free trade and free flow of capital around the world has been abolished and
hence globalization rate has increased. Theoretically, this should generate more wealth and
improve the standard of living of the people in the global economy.Practically, it has been
seeen that the developed countries or rich countries benefit more than the poor countries.

Globalized countries aften reduce the workforce, decrease the wages or relocate the firms so
that the cost of manufacturing is reduced. New technology with globalization often
introduces the new workforce due to which manpower is reduced.

Less barrier to trade and investment has increased opportunities for highly skilled labours but
reduced opportunities for low and semi-skilled labour groups. Companies which goes global
reduce their workforce or there is reduction of wages.Due to Globalisation advanced
technology is used, which replaces man power.

In this way, Globalization increases poverty and inequality.