It describes globalisation, its effects, types and reasons for the same

1. International
Financial
Management
Submitted By:
Name: Aarti Gaur
Roll No. 6020
Semester: 4, Year: 2
Course; Masters of Commerce’
College; Shaheed Bhagat Singh College
Submitted
To:
Rati
Dhillon
Ma’am

2. Questio
n “Globalisation has made a tremendous impact
throughout the world in the past few years. There
are various reasons in this progression.” Elaborate
on the statement and discuss the reasons.
0
1

3. Answer
01.
Globalization ,the word used in the statement refers to the growing
interdependence of the world’s economies, cultures, and
populations, brought about by cross-border trade in goods and
services, technology, and flows of investment, people, and
information.
The wide-ranging effects of globalization are complex and politically
charged. As with major technological advances, globalization benefits
society as a whole, while harming certain groups. Understanding the
relative costs and benefits can pave the way for alleviating problems
while sustaining the wider payoffs.

4. Economic
Globalization
The focus is on the integration of
international financial markets
and the coordination of
financial exchange. Free trade
agreements, such the North
American Free Trade Agreement
and the Trans-Pacific Partnership
are examples of economic
globalization.
This aspect of globalization
focuses in a large part on the
technological and societal
factors that are causing
cultures to converge. These
include increased ease of
communication, the
pervasiveness of social
media and access to faster and
better transportation.
Types of Globalisation
Political Globalization Cultural Globalization
This type covers the national
policies that bring countries
together politically,
economically and culturally.
Organizations such as NATO and
the UN are part of the political
globalization effort.

5. Effects of Globalisation
Access to a wider variety of
resources, good and services
Cybercrime and
Terrorism
More education opportunities for
people in developing countries
Pollution of the oceans and
Deforestation
POSTIVE
IMPACT
NEGATIVE
IMPACT
Lowering production costs of
products and more job
opportunities
Encourages positive trends in
human rights and the environment
Facilitates global recessions and
Increases the likelihood of
pandemics
Increased Global Warming
As mentioned in the statement, it impacted the world in
various ways as listed below:

6. Reasons for Globalisation
Improved
Transport
Transportation and globalization are two highly intertwined subjects.
Without reliable transportation across the geographic divides,
globalization would not exist. Moving people and goods is of high
economic importance, as it improves the economic welfare of a
society.
Growth of
global media
The media industry is perfect for globalization, or the spread of
global trade without regard for traditional political borders. Low
marginal costs of media mean that reaching a wider market creates
much larger profit margins for media companies. Because
information is not a physical good, shipping costs are generally
inconsequential.

7. Reasons for Globalisation
Improved
Transport
Makes it easier to communicate and share information around the
world. E.g. internet. For example, to work on improvements on this
website, I will go to a global online community, like elance.com.
There, people from any country can bid for the right to provide a
service. It means that I can often find people to do a job relatively
cheaply
Containeriza
-tion
Since these businesses operate on a global scale, they are
sometimes referred to as global enterprises. The main business
controls and operates the operations on a global scale. MNCs’
products and services are offered in several countries, demanding
global management. MNCs may have a significant impact on local
economies and even the global economy.
Improved
Technology
Growth of
MNCs

8. Reasons for Globalisation
Growth of
global
trading blocs
As well as increased integration amongst members of a trading bloc. It
is argued trading blocks help globalization through making global
negotiations easier. For example, in the case of trade negotiations.
The EU will negotiate as a single trading block making it easier to
push through practices which increase free trade.
Reduced
tariff barriers
Tariffs are placed on imported goods as a way of protecting sensitive
industries, for humanitarian reasons, and for protection against
dumping. The WTO has been, and continues to be, a way for nations
to meet and negotiate through barriers to trade. The gains of
globalization are very large, especially for smaller countries, but are
beneficial to all.

9. Reasons for Globalisation
Improved
Transport
In the past few decades, there has been a general reduction in capital
barriers, making it easier for capital to flow between different
economies. This has increased the ability for firms to receive finance.
It has also increased the global interconnectedness of global financial
markets. Also, people are more willing to move between different
countries in search for work.
Containeriza
-tion
New trade theory (NTT) refers to modern economic theory that
explains It helps decipher the main reason behind international trade
based on economies of scale, network effects, and first-mover
advantage. globalization and intensive trading between similar
economies. In addition, it paves the way for the government’s role in
the industrialization of a country.
Improved
mobility of
capital and
labour
New Trade
Theory

10. Conclusion
Thus, proving the above statement
absolutely right, we can conclude
that, globalization is a longstanding
trend that is in the process of
changing and possibly slowing.
There are advantages to the more
open border and free trade that
globalization promotes, as well as
negative consequences.
In a modern, post-pandemic world,
individuals, businesses and
countries must consider both
sides of the globalization issue
keeping in mind the various
reasons for the same.

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