Business owners must consider both the advantages and disadvantages of finding new international markets for their products. Including some statistics, analyze and evaluate the causes, trends and impact of Globalisation on the various parties involved in businesses, society and the economy.
Globalisation is the increasing worldwide integration of markets for goods, services and capital. The causes, trends and impact of Globalisation play a large role in the functioning of the economy as well as the success of many businesses and the standard of living enjoyed by society. However Globalisation has both advantages and disadvantages that must be considered.
Globalisation has existed for centuries, dating back to the Roman Empire however recent years have seen a dramatic surge in global trade. This can be attributed to recent developments in technology and an increase in Free Trade agreements. Technology dictates the manner in which goods, services and capital can be traded between economies.
The World Wide Web has made it possible for businesses all over the world be in contact 24hours a day. This allows buying and selling to take place at anytime of the day or night. However this alone is mostly unprofitable without means of efficient transport. Sheldrake (2006) claims that developments such as those in packaging, miniaturization, containers and container-handling systems have been able to keep up with the growing demands for global trade.
Free Trade is also increasingly popular. According to Austrade (2006) Free Trade creates a 'Level Playing Field'. Free Trade removes restrictions on exports and imports imposed by governments to facilitate a free flow of goods and services globally. Restrictions include tariffs, which is a tax on imported goods or services and quotas that limit the quantity of certain imports. If countries have goods or services with which they hold an absolute or comparative advantage Free...