This essay explains the concept of globalisation, identifies and appraises its main drivers, describes its extent and limits, and discusses its impact on business. In addition to the course text, other references on the topic were used and cited when appropriate.
64-65) as the opposite of localisation; it is the process of adapting products for use outside the home nation (think steering wheels in cars or Chinese versions of Windows). Firms must internationalise if they want to sell to markets outside their home country, because foreign markets have different cultures, needs and wants, demanding that firms make adjustments to products and services, organisational structures, leadership and people systems, and supply chains, amongst others.
In a landmark paper on the topic, Whitley (1994) observed that the post-war internationalisation process of firms was primarily driven by increases in foreign direct investment by transnational (or multinational) enterprises. This led to increased interdependence of the industrialised economies and changes in the world economy with the following characteristics: (1) the establishment of a distinct global system of coordination and competition, (2) the denationalisation of leading firms, and (3) the international standardisation of managerial structures and practices. It can be said that the natural progression from internationalisation to interdependence and greater integration of the world economy resulted in the complex phenomenon that we now call "globalisation".
Globalisation is a concept that is best described than defined because of its complexity. ...