assalamualaikum.
The term “globalisation” is often used to describe the increased flow of knowledge,
resources, goods and services among nations. The term is sometimes defined as “the
development of an increasingly integrated global economy marked especially by free trade,
free flow of capital and the tapping of cheaper foreign labour markets”.*
Globalisation can also be described as a process by which the people of the world are
unified into a single society and function together. This process is a combination of
economic, technological, socio-cultural and political forces. The term is, however, often
used to refer in the narrower sense of economic globalisation, involving integration of
national economies into the international economy through trade, foreign direct
investment, capital flows, migration and the spread of technology.
OECD (2005) highlights that three major forces have contributed importantly to the
globalisation process: i) the liberalisation of capital movements and deregulation, of
financial services in particular; ii) the further opening of markets to trade and investment,
spurring the growth of international competition; and iii) the pivotal role played by
information and communication technologies (ICT) in the economy.
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