Globalization can be defined as a process of dealings and incorporation of the individuals, businesses as well as the governments of diverse countries. It is a procedure determined by global operations and venture and assisted by IT (Information technology). This procedure has consequences on the surroundings, on civilization, on political systems, on financial improvement and affluence, in addition to on human corporal well-being in communities all over the globe. It is the continuous procedure of superior interdependence amongst nations and their residents. It is difficult and a complex process. A lot of of the troubles that the critics of globalization bring in are genuine. A number of them are associated to economics. Others connect to the non-economic, however not as much of significant, features of existence. And even as a number of of the troubles do appear as the procedure of worldwide incorporation, erstwhile do not (Boorman et al., 2000).
By 2007, the global business had attained 60% of the GDP all over the globe, as in comparison to mid-1980s, which was less than 30%. The developed countries might argue that the globalization has been a reason behind more and more job creations and worldwide growth. However, the developed nations faced augmented rivalry and competition that has caused the banking and non banking organisations to search for ways to enhance their market-share in various new economies and trying to influence more clients from different nations, which helps them in the diversification of risks. Due to high competition faced by businesses in the developed nations, there has been decrease in costs by improvements in the technology. The deregulation has intended that banks are capable of getting into the trade that had not been allowed earlier like securities, asset management and insurance. The non-banking financial establishments have been gradually challenging with conventional banks, tendering financial services customarily offered completely by banks, agreeing to fresh economic risk computation ways, and piercing conventional banking activities in credit markets, for example syndication of advances and bridge advances by means of new prearranged financial tools (Jureidini, 2002).
The developed nations- though might lose jobs to developing nations, get economies of scale. They get better talent at lower cost and are able to expand their business all over the globe. The developed nations are able to get cheap labour and cheap raw materials, technology from other parts of the World thus maximising their revenues and assisting them in raising their individual nation’s GDP.