Page 80 - DMGT548_GLOBAL_HRM

Unit 4: Globalisation in World Economy

 Globalisation has had significant impacts on all economies of the world, with manifold Notes
effects.

 The globalisation of markets refers to the merging of historically distinct and separate
national markets into one huge global marketplace.
 In many markets today, the tastes and preferences of consumers in different nations are
converging upon some global norm.

4.5 Keywords

Emerging Economies: Emerging economies are nations with social or business activity in the
process of rapid growth and industrialisation.

Foreign Direct Investment (FDI): An investment made by a company or entity based in one
country, into a company or entity based in another country.
Human Capital: The skills, knowledge, and experience possessed by an individual or population,
viewed in terms of their value or cost to an organisation.
Infrastructure: The stock of fixed capital equipment in a country, including factories, roads,
schools, etc., considered as a determinant of economic growth.
Intellectual Capital: Collective knowledge of the individuals in an organisation or society. This
knowledge can be used to produce wealth, gain competitive advantage, and enhance value of
other types of capital.
International Trade: International trade is exchange of capital, goods, and services across
international borders or territories.
Market: A market is any place where the sellers of a particular good or service can meet with the
buyers of that goods and service where there is a potential for a transaction to take place.

Multinational Enterprise: A multinational enterprise is any business that has productive activities
in two or more countries.

4.6 Review Questions

1. What do you understand by global economy?

2. How is globalisation leading to the emergence of global economy?
3. State the major factors behind the transformation of world economy.
4. Elaborate on the Technological advancements that aid the globalisation process.

5. Explain the geopolitical factors that helped global economy in emerging.
6. What has helped the globalisation of investment?
7. What do you understand by the globalisation of production?
8. What do you think at what pace globalisation will continue?

Answers: Self Assessment

1. Globalisation 2. Openness

3. Geopolitical 4. Technological

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