Explain The Implications Of Globalisation For The National Economies Assignment

Explain The Implications Of Globalisation For The National Economies In General And Its Impact On The Business Environment In The United Kingdom - Assignment Example Most of the governments were unable to protect their market from the foreign competitors and got attracted by the import tariffs. On the other hand, the introduction of advanced technologies has reduced the costs of communication and transportation by a certain degree (Shangquan, 2000). Likewise, this paper will provide a study of the enhancing factors and the major impacts imposed by globalisation in developing the economy and also the business environment of the UK. Theoretical Background There has always been a strong linkage between globalisation and growth along with development. Globalisation is duly considered as one of the major aspects in the modern economic scenario and is also regarded as one of the vital factors determining the future prospect of economic growth and development. This can be justified from a theoretical perspective that it affects the productivity of goods or services of a nation. In addition, it also affects labour employment and the elements utilised in the process of production by a greater extent. One of the major impacts of globalisation, in general, can be apparently observed as the growth in Foreign Direct Investment (FDI). The FDI growth rate is much higher than the entire growth in the world trade in the course of globalisation. The reduction in trade barriers and the increment in the global income of FDI have led several countries towards attaining superior competitive position with better economic growth along with development. The growth in the FDI rate eventually lead towards the introduction of pioneering technological advancements and the establishment of huge enterprises on the global level. Thus, the combination of... This paper stresses that the aforesaid study reflects detailed information about the impact of globalisation especially on the national economy in general and also on the business environment of the UK. It has already been observed in the earlier description that the UK economy was the major beneficiary of globalisation. The reduction in the income of the labour and the fall in the bargaining power of the labour force are the major aspects that have been attained from the impact of globalisation. One of the vital impacts of globalisation on the UK economy and also on the business environment of the UK can be viewed as that the major portion of the companies has become much international in nature. This report makes a conclusion that tthe global financial system of the world is not working well as it is intended to. The writer affirmed that if the global system is working well, then why the global crises are occurring in various nations of the world. In recent years, it can be viewed that the net flow of funds has been transferring from the poor countries to the richer ones, but the actual incident should be the opposite one. However, in order to cope up with the problem, the writer has also suggested that the government and the larger organizations must keep in mind certain important aspects while performing business at the global level. The companies must possess effective labour force in their capital market.