First draft Introduction

Summarise the main effects of globalisation and discuss to what extent they are beneficial to global businesses. (First Draft)

Introduction

Over the past century there has been a dramatic increase in the world economic growth and the world GDP has been risen sharply (Lasserre P, 2007, p12).Some people believed that one of the key factors which have increased in the world economic growth is globalisation. While a variety of definitions of the term globalisation has been suggested by many institutes such as the Canadian Economy has defined “globalization as the increased mobility of goods, services, labour, technology and capital throughout the world” or “globalisation is the growing integration of economies and societies around the world” which was given definition by the World Bank. The phenomenon of globalisation has been widespread effect in many aspects, for example, businesses, finance, culture, education, technology, political, health care, environmental, human right. It is widely believed that globalisation has brought a lot of benefits to global economy e.g. trade liberalization, new market opportunities, direct foreign investment, reduce cost of transportation. However, some critics argued that the huge benefits of globalisation has been delivered to only a group of multinational companies .Moreover, the income gap has been increased rapidly in developing countries (Anand S, 2006).This essay will summarise the main effects of globalisation and also will show the benefits and drawbacks of globalisation that might be impact in global businesses.