Globalisation: The process of growth in world markets through a process of integration where it is possible to trade in a global market in the same way as one would in a domestic market.

Factors that contributed to globalisation:

• Increase in trade and the number of transactions taking place
• Increase in movements of capital for investments
• Increase in the movement of people across international borders for work
• Increase in the availability of communication through phones and internet.
• Bigger economies of scale for long distance shipping
• Less laws on trade

Advantages:

• The incoming company brings investment, jobs and training
• News and ideas spread quicker than before
• More economic activity in developing countries

Disadvantages:

• Benefits of globalisation are mostly felt by developed countries more
• Loss of jobs in developed countries due to outsourcing
• Multinational businesses can exploit developing countries.