The result of greater foreign investment and greater foreign trade has been
greater integration of production and markets across countries. Globalisation is a
process of rapid integration or interconnection between countries. MNCs are
playing a major role in the globalisation process. More and more goods and services
, investments and technology are moving between countries. Most regions of the world
are now in closer contact with each other as compared to a few decades back.

The flow of capital, people and technology is supposed to have created a
borderless world. As a result, states lose power to determine many aspects of life
even within their borders. For instance, the most important decisions regarding the
value of a currency, which were earlier made by sovereign governments, are todaymade
outside government corridors and more often by market players and forces
over which governments have very little control.

Factors that have enabled Globalisation

Technology

Rapid growth of technology has been one major factor that has stimulated
the globalisation process. For instance, the past fifty years have seen several
improvements in transportation technology. As a result, goods are delivered
faster across long distances at lower costs.

The developments in information and communication technology have been even more
remarkable and rapid. Telecommunication facilities (telegraph, telephone including
mobile phones, fax) are used to contact one another around the world, to access
information instantly and to communicate from remote areas. This has been
facilitated by satellite communication devices. Computers have now entered almost
every field of activity. You might have also ventured into the amazing world of
internet, where you can obtain and share information on almost anything you want to
know. Internet also