Question

State any four ways in which globalisation has transformed the manner in which business is conducted.

Answer 1

Following are the four ways in which globalisation has transformed the manner in which business is conducted.

1. Dominance of multinational corporations: Globalisation has led to the establishment of multinational corporations (MNC's) with subsidiaries and operations in numerous countries. Multinational corporations (MNC's) have a significant impact on global markets, economies, trade, and business practices.
2. Liberalisation of foreign investment: Globalisation has facilitated the liberalisation of foreign investment policies in many countries, allowing for increased cross border investment and capital flows. This has helped firms get access to new markets, resources, and opportunities, promoting global economic development.
3. Growing competition: Globalisation has increased competition among enterprises for market share in a highly interconnected and competitive global marketplace. Companies confront competition from both domestic and foreign firms entering their home markets. To be competitive in today's dynamic market, organisations must innovate, enhance efficiency, and adapt to changing conditions.
4. Globalisation of markets and production: Globalisation has integrated markets and production processes worldwide. Advancements in transportation, communication, and technology enable enterprises to easily access overseas markets, source inputs abroad, and coordinate manufacturing activities across boundaries. Globalisation of markets and production has led to increased international trade, specialisation, and supply chain efficiency, allowing enterprises to leverage comparative advantage and achieve economies of scale.