Globalisation
When countries buy and sell goods from and to other countries, this is called globalisation. However, globalisation also refers to the relatively free movement of financial capital, skills, people, and ideas across geographic and political borders. It can also be described as the way in which societies and governments adjust to the spread of economic and business innovations around the world. Many people assume that global trade is on a government to government basis, which is not true. Global trade is made business to business, not nation to nation, and it is always changing and growing. Technological advancement has assisted in changes to the way global business operates. Although the method of e-commerce is quite popular, it is not yet significant in global trade. However, the method will surely expand rapidly when all nations involved acquire the technology required. The deregulation of financial markets in the later half of the 20th century has resulted in the expansion of global business and trade. This has allowed funds, securities, and equities to move rapidly across borders with ease. Trade barriers which used to exist in abundance have been dramatically reduced by the introduction of regional trading alliances.
