Globalisation: integrating the economy of a country with the economies of other countries under conditions of free flow of trade, capital and movement of persons across borders.
Globalisation interconnect different countries by:
- Foreign trade. It leads to integration of markets across countries due to which the latest models of goods like digital cameras, mobile phones and televisions etc. are available in one country.
- Foreign investment. MNCs invest capital in different countries by
- jointly producing with local companies.
- buying the local companies.
- placing orders for production like garments footwear, sports goods etc. with small producers of other countries.
