Globalisation Case

Today business operation and the world economy are characterized by domination of multinational corporations(MNCs), strong presence of the government in economy and the long-term tendency towards globalization in the world. Globalization started after World War II, globalization is understood to mean major growths in exchanges and worldwide trade that involves better openness in the international economy, an integration of markets on a worldwide basis, and a movement toward a borderless world (Intriligator,2003). The World Bank defined globalization as the global circulations of products, services and trade as well as people and ideas (World Bank, 2001). In addition, Scholte (2000) as cited by Oni(2007) says that there are 5 elements of globalization definition as it is broad to be defined exactly. A growing economic interaction of countries or an integration of national economic systems through increased trade activities, capital flows and investments are involved in globalization. Technology, communication networks, internet access, movement of free trade, collapse of communism and growth of economic cooperation-trading blocs such as the North American Free Trade Area (NAFTA), European Union(EU), ASEAN Free Trade Area (AFTA) and more made the integration of economies possible. However, in globalization there are benefits like consumer choices, economic growth, reduce poverty, unemployment rate and more likely to cause only some countries such as developed and developing countries able to exploit all of it. Somehow many developing countries still in weak economic, legal, and political institutions that causes vulnerable to high levels of corruption, insecurity and conflict. This situation is worsened due to lack of competitiveness in term of labour, technology and skills.