The impact of this level of globalisation has undoubtedly led to economic growth.
In specific terms, the effects of globalisation are as follows:
• The major effect of globalisation is that the global economy is becoming more integrated day by day.
• The volume of world trade has grown at a faster rate than the volume of world output.
• There has been a trend of lowering the barriers to the free flow of goods, services and capital among • countries.
• Foreign direct investment has been playing an important role in the global economy.
• In order to become competitive, company have started investing in overseas operations.
• Global operations have led to the emergence of Multilateral Trading Systems.
• Imports are penetrating deeper into the world’s largest economies as well.
• The growth of world trade, foreign direct investment and imports led to more foreign competition in the domestic markets.
• In order to compete with the foreign players, domestic firms are required to enhance the production and distribution capabilities.
• Companies have started looking the world as a market for their products.
• Companies have started dispersing their manufacturing, marketing and research facilities around the globe where cost and skill conditions are most favourable.
• Opportunities have been increasing for the firms.
• Innovations have started spreading faster.
