KSEEB Class 10 SSLC Business Studies Chapter 3 Globalization Of Business Globalization
After 1980, globalization achieved a great progress in the economic reforms of developing countries.
Globalization is the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services, capital movement and through the more rapid and widespread diffusion of technology.
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Characteristics of Globalization:
- Cross border movement of goods and services
- International flow of capital, technology and information
- Formation of one world wide market
- Production of goods in any region at cheaper cost.
Factors that are included in Globalization:
- Referring the world wide phenomenon of technical, economic, political and cultural exchanges.
- Encouraging international capital & trade overcoming the political barriers.
- Creating free trade zone by removing the export and import duties.
- Reducing the transportation expenses.
- Creating subsidies to the world wide trade organization.
Features of Globalization:
- Free movement of goods, services, capital, etc, across the borders.
- Labour and professionals migration and immigration between different countries.
- International flow of technology, information and capital.
- Formation of one worldwide market by obtaining raw material and other resources from cheap markets.
- Production and marketing of goods in any region of the world at cheaper cost.
- Economic, social, cultural integration of an economy with different economies of the world.
- Growing number and importance of multinational companies.
“SSLC Business Studies Chapter 3 Globalization of Business explained”
Positive Effects of Globalization:
- Internationalization of goods and services
- Globalization of technology
- Capital inflows and foreign direct investments undertake economic transactions across natural boundaries
- Economic, social, cultural integration
- Human resource development
- Economic growth and development of underdeveloped and developing countries
- Reducing regional and income inequalities
- Optimum utilization of world resources
- Improve standard of living.
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Negative Effects of Globalization:
- Sweat shopping
- Unethical practices in business dealings
- Cut-throat competition
- Helped terrorists and criminals
- Increasing pollution and garbage
- Exploitation of III world countries such as child labour and slavery
- Promotion of junk food consumption
- Widened economic inequalities
- Environmental degradation
- Depletion of natural resources
- Dislodging domestic industries
- Unemployment in developing countries
- Spread of deadly viral diseases such as AIDS and Cancer
KSEEB Class 10 SSLC Business Studies Chapter 3 Globalization Of Business World Trade Organization
International trade agreements and WTO:
- WTO office is located at Geneva, Switzerland and established on 19 January, 1995.
- 149 countries in the world are the members of WTO.
Objectives of WTO:
- Improving standard of living
- Settling trade disputes between member nations
- Stimulating economic growth and development
- Promoting international peace and business
- Encouraging good governance
- Making international trade and relations smooth
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Functions of WTO:
- Bringing into force the trade agreements throughout the world
- Acting as a dispute settlement body
- Supervising the revised trade agreements
- Ensuring reduction of tariffs in international trade
- Assistance to underdeveloped nations
- Ensuring optimum utilization of world resources being the international trade under legal frame work
Note: WTO was formerly known as GATT (General Agreement on Tariff and Trade) before 1995.