Globalisation in the 21st century is believed to have the ability to transform the political, economic and social environment of all member countries in the coming years. Thus, the paper tries to bring out the activities, both advantageous and disadvantageous, that result in general globalisation i.e. globalisation to both small and large businesses as well as citizens.
This is the act of bringing together different people with different political, social and economic backgrounds and forming of one global community (Ghoshal and Bartlett, 2000). Behind the success of the process lies the economics of international trade, free market frameworks and investment. As earlier mentioned, globalisation encompasses integrating people from different settings, thus it bridges the gap between developing and developed nations as well as creates new cultural exchanges, business models, considerations and experiences within the participating nations (Ghoshal and Bartlett, 2000).
The globalisation process began during World War II when Britain and USA leaders helped to establish the International Monetary Fund (IMF) and the World Bank (WB) so as to encourage a capitalist world that is liberal and eliminate the Socialism and Marxism world (Nayyar 2000). Nayyar further affirms that the borrower of the loan from these organisations automatically qualified to follow the preset conditions i.e. reduce import barriers, eliminate financial backing for local-based industries, devalue their currency, put emphasis on export production as opposed to production for local consumption and reduce wages and expenditure on social wellbeing. These conditions resulted in a number of open economies developing a mechanism for integrating with other economies which led to the formation of the World Trade Organisation.
Small businesses, small and medium enterprises or simply SME’s as referred to in the European Union (EU) and by other