Quick Summary
Diagram
Important Table
| Point | Meaning | Example / Use |
|---|---|---|
| Trade Integration | Countries trade more | Imports and exports |
| Capital Flow | Investment across countries | FDI, portfolio investment |
| Technology Flow | Transfer of innovation | Digital platforms |
| Cultural Exchange | Spread of ideas and lifestyles | Global brands and media |
Best 10 Marks Answer
Globalisation is an important topic in International Business Environment. It helps managers understand how global economic, political, legal, cultural and technological forces affect business decisions.
Globalisation is the process of increasing integration and interdependence of economies through trade, investment, technology, communication and movement of people.
In international business, this concept is useful because firms operate across countries where markets, laws, currencies, cultures and competition are different. A business must analyse these factors before entering a foreign market or expanding globally.
For example, a company planning to sell products in another country must study customer culture, exchange rate, trade barriers, legal rules, political stability and local competition.
Conclusion: Therefore, Globalisation helps businesses reduce risk, identify opportunities and make better global business decisions.
Tips and Tricks to Remember
- ✅ Mention interdependence among countries.
- ✅ Write both advantages and disadvantages.
- ✅ Use examples like global brands and outsourcing.
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