Globalisation: Causes and Consequences

Globalisation refers to the increasing integration and interdependence of the world's economies through the growth of international trade, capital flows, migration, and the spread of technology and ideas. It is one of the defining economic trends of the past fifty years and has profound implications for growth, inequality, employment, and the environment.

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Defining Globalisation

Key Definition: Globalisation is the process by which national economies become increasingly integrated and interdependent through the growth of international trade, investment, migration, and the sharing of technology, culture, and ideas.

Globalisation is not a single phenomenon but a multifaceted process encompassing:

• Economic globalisation — increased trade, FDI, and financial flows
• Political globalisation — growth of international organisations (WTO, IMF, World Bank, UN)
• Cultural globalisation — spread of consumer brands, media, and cultural practices
• Technological globalisation — global communication networks, the internet, and digital platforms

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Causes of Globalisation

1. Trade Liberalisation