Transformations  in
Business & Economics

On the Phenomenon of Globalisation

JEL classification: Y20.

The debate over globalization is lively, multifaceted, complex and has many dynamic aspects as it was discussed during the International Scientific Conference “International Business Development: Globalization, Opportunities and Challenges” organized by International Business School at Vilnius University, Lithuania. There is no an all-encompassing definition of globalization since it refers to many global interactions and could be analytically viewed from different perspectives. For the economists and business people, globalization is essentially the emergence of a global market, widening of international trade flows, growth of globally interlinked financial markets and consumer markets with global brands. For sociologists, globalization refers to the growth of diversity and at the same time the convergence and assimilation of cultures, values and lifestyle patterns. In addition, globalization could be defined as the ongoing process of greater interdependence among countries and it refers to an increasingly integrated world economy and worldwide integration of many other aspects. Nevertheless, globalization is a natural outcome of technological advancements, economic growth and science progress. During this process globalization gave rise to new actors like multinational corporations, new international organizations and multilateral laws, emergence of regional blocks and communities.

Globalization entails challenges, opportunities and realities. The overall challenge to economic globalization is to make the global system deliver more economic growth and shared prosperity in order to reduce inequality among developing and developed countries. A clear, shared vision of the future is needed both at national and global levels in order to coordinate effectively macroeconomic policies and promote global stability. In addition to these processes, much attention should be paid to sustainable development since the growth of global markets and widening consumerism have opened new challenges to develop in a sustainable way in terms of resources management, environment and many other areas.

Although the international financial system is meant to facilitate international trade, investment and world economic growth, nevertheless, globally interlinked financial markets have financial volatility and in many cases the frequency of financial crises are increasing with the growth in international capital flows. This approach requires not only sound and well-developed financial systems but also improving the understanding of economic and political dynamics at national and international levels. Therefore, such factors highlight the need for a shared vision in each country about its position in the dynamic and vulnerable global economy. At the global level stronger agenda must be drafted to develop a more inclusive and future-oriented system. Therefore, in this debate an important role is given to partnership and stakeholder engagement.

Higher education establishments are highly affected by globalization developments as well. Currently, many business schools are entering foreign territories striving to teach global business perspectives, reach global markets of perspective students, conduct globally relevant research and promote innovations and entrepreneurship. Increasing mobility of students and faculty and the growth in international partnerships among education, research and other institutions and stakeholders also make the agenda more complex and in need of networked resources. Today globalization is in every aspect of activities and it is an unstoppable phenomenon, presenting opportunities to those who are prepared and threats to those who are not.