What do you understand by globalization? Explain in your own words.

Globalisation refers to the process of integration between countries such that there is a greater flow of goods, services, capital and labour among them. This process is making world into “one big village”.

This process has had following impact:

● Greater coordination and cooperation at international level.

● Emergence of institution like WTO (World trade organisation) for facilitating trade led relation among countries.

● Separation of the process of production, where in a company can have R&D, Manufacturing unit and distribution zone, being located all separately in different location.