Globalisation is a result of the world becoming increasingly interconnected due to the hugely increased trade and cultural exchange. The biggest companies are no longer just simply national firms, but multinational corporations with subsidiaries in many different countries, making business and industry global enterprise.
Globalisation isn’t a direct result of the last few decades, instead, it has been happening for hundreds of years, although over the last fifty years, in particular, it has sped up substantially. Many of the effects of globalisation are more obvious than others, including increased international trade; companies functioning on a global scale in many countries; a greater dependence on the global economy; freer movement of capital, goods and services and the international recognition of companies such as McDonald’s and Starbucks in less economically developed countries (LEDCs).
There’s a lot to be said for globalisation, and indeed it’s probably helping to create more wealth in many developing countries; increasing awareness of global issues and bringing foreign currency to local communities, but it is not helping to close the gap and wealth distribution between the world’s poorest and richest countries.