what is globalization? discuss why the small scale industries got badly hit because of it
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Globalization is a term given to the opening of borders and the increased mutually beneficial relationships between countries so that trade and services may be shared freely. This creates a pretty picture of harmonious alliances after a stronger global economy, and dare we say it, world peace. There are many benefits to increased globalization for the small business owner, however there are also many negatives to consider.
In simple terms, globalization is the process by which people and goods move easily across borders. Principally, it's an economic concept – the integration of markets, trade and investments with few barriers to slow the flow of products and services between nations.
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Globalization, or globalisation, is the process of interaction and integration among people, companies, and governments worldwide. Globalization has accelerated since the 18th century due to advances in transportation and communication technology.
The small scale industries got badly hit because of four reasons :-
1--->Sociology : Globalization, according to sociologists, is an ongoing process that involves interconnected changes in the economic, cultural, social, and political spheres of society. As a process, it involves the ever-increasing integration of these aspects between nations, regions, communities, and even seemingly isolated places.
2--->Traits : •Greater trade in goods and services both between nations and within regions.
•An increase in transfers of capital including the expansion of foreign direct investment (FDI) by trans-national companies (TNCs) and the rising influence of sovereign wealth funds.
3--->Economic benefits : Globalization aims to benefit individual economies around the world by making markets more efficient, increasing competition, limiting military conflicts, and spreading wealth more equally.
4--->Environment : Globalization has had far-reaching effects on our lifestyle. It has led to faster access to technology, improved communication and innovation. Increased consumption leads to an increase in the production of goods, which in turn puts stress on the environment