Essential conditions for globalisation

 Business Freedom: There should not be unnecessary government restrictions which come in way of
globalisation, like import restriction, restrictions on sourcing finance or other factors from abroad, foreign
investments etc.
 Facilities: The extent to which an enterprise can develop globally from home country base depends on the
facilities available like the infrastructural facilities.
 Government Support: Although unnecessary government interference is a hindrance to globalisation,
government support can encourage Globalisation. Government support may take the form of policy and
procedural reforms, development of common facilities like infrastructural facilities, R&D support, financial
market reforms and so on.
 Resources: Resources is one of the important factors which often decides the ability of a firm to globalise.
Resourceful companies may find it easier to thrust ahead in the global market. Resources include finance,
technology, R&D capabilities, managerial expertise, company and brand image, human resource etc.
 Competitiveness: The competitive advantage of the company is very important determinant of success in
global business. A firm may derive competitive advantage from any one or more of the factors such as low
costs and price, product quality, product differentiation, technological superiority, after sales service,
marketing strength etc.
 Orientation: A global orientation on the part of the business firms and suitable globalisation strategies are
essential for globalisation

 Positive Effects of Globalization

Increased Competition
One of the most visible positive effects of globalization is the improved quality of products due to
global competition. Customer service and the 'customer is the king' approaches to production
have led to improved quality of products and services. As the domestic companies have to fight
out foreign competition, they are compelled to raise their standards and customer satisfaction
levels in order to survive in the market. Besides, when a global brand enters a new country, it
comes in riding on some goodwill, which it has to live up to. This creates competition in the
market and a 'survival of the fittest' situation.

Employment
With globalization, companies have forayed into the developing countries and hence generated
employment for them. But it is one of the positive and negative effects of globalization, depending
on the point of view you wish to see it from. It has given an opportunity to invest in the emerging
markets and tap up the talent which is available there. In developing countries, there is often a
lack of capital which hinders the growth of domestic companies and hence, employment. In such
cases, due to global nature of the businesses, people of developing countries too can obtain
gainful employment opportunities. But the developed countries have lost jobs on account of this
movement of jobs to the developing world and hence it is a pinch felt by people in the First World.

Investment and Capital Flows

One of the most visible positive effects of globalization in India is the flow of foreign capital. A lot
of companies have directly invested in India, by starting production units in India, but what we
 also need to see is the amount of FII that flows into the developing countries. Indian companies
which have been performing well, both in India and off the shores, will attract a lot of foreign
investment, and thus pushes up the reserve of foreign exchange available in India. This is also
one of the positive effects of globalization in US and other developed countries as developing
countries give them a good investment proposition. China's trade with Africa rose sevenfold
during 2000-07 alone.[14][15]

Foreign Trade
While discussing the positive effects of globalization, how can I leave out the impact of
foreign trade on an economy. Comparative advantage has always been a factor even in
the old times. While trade originated in the times of early kingdoms, it has been
institutionalized due to globalization. Previously, people had to resort to unfair means and
destruction of kingdoms and countries to get what they wanted. Today, it is done in a
more humane way, with mutual cooperation. People who operate in uncivilized ways,
now have to face the WTO and other world organizations that have been established with
a view to control and regulate the trade activities of the countries.

Spread of Technical Know-How

While it is generally assumed that all the innovations happen in the Western world, due to
globalization, the know-how also comes into developing countries due to globalization.
Without globalization, the knowledge of new inventions, medicines would remain cooped
up in the countries that came up with them and no one else would benefit. But due to
improved political ties, there is a flow of information both ways. And this point - the
spread of know-how, can also be expanded to include economic and political knowledge,
which too has spread far and wide. The most obvious example of the spread of
knowledge is that the Western world today are waking up to the benefits of Ayurveda and
Yoga, while the Western antibiotics and flooding the Indian markets improving the quality
of life (and the longevity too) of people in India.

Spread of Culture
The positive effects of globalization on culture are many! Not all good practices were born
in one civilization. The world that we live in today is a result of several cultures coming
together. People of one culture, if receptive, tend to see the flaws in their culture and pick
up the culture which is more correct or in tune with the times. Societies have become
larger as they have welcomed people of other civilizations and backgrounds and created
a whole new culture of their own. Cooking styles, languages and customs have spread all
due to globalization. The same can be said about movies, musical styles and other art
forms. They too have moved from one country to another, leaving an impression on a
culture which has adopted them. Worldwide fads and pop culture such as Pokémon,
Sudoku, Numa Numa, Origami, Idol series, YouTube, Orkut, Facebook, and MySpace;
accessible only to those who have Internet or Television, leaving out a substantial
portion of the Earth's population. Worldwide sporting events such as FIFA World
Cup and the Olympic Games.

Spread of Education
One of the most powerful positive effects of globalization on women and men both is the spread of
education. Today, you can move in the search of the best educational facilities in the world, without any
 hindrance. A person living in US can even go to another continent for a new experience and some
courses which one may not find in the home country. If one is interested, one can even get a
specialization in subjects indigenous to a country and spread that knowledge to the home country. A good
example of that is how the American managers went to Japan to learn the best practices in the field of
mass production and incorporated that knowledge in their own production units.

Legal and Ethical Effects

Gone are the days where the limited jurisdiction became a hindrance in the prosecution of criminals.
These days due to international courts of justice, these criminals can no longer seek asylum in a foreign
country, but will be brought forward and there will be justice. Due to globalization, there is also an
understanding between the security agencies and the police of two or more different countries who will
come together to curb global terrorism. Hence, it is now possible to catch the perpetrators of crime
irrespective of which country they choose to hide in. This is undoubtedly one of the greatest positive
effects of globalization on society.

Organizations for Environmental and Social Concerns

In cognizance of the damage that has been caused to our world over the years, the individual nations
have decided to come together to find a way to save our world from ourselves. Organizations monitoring
climate change as well as those which look at the welfare of our animals and marine life, are undoubtedly
one of the positive effects of globalization on the environment.