Globalisation

World economy is now much more integrated and interdependent with a marked acceleration in this trend. National economies are less isolated, commonly due to lower cross border trade and investment barriers and Smaller’ geographic and time zones distance.

Other considerations include fewer national government regulations, less individual business systems and lower impacts on national cultural differences.

The removal and/or reduction in tariffs and barriers to the free flows of goods has enabled the increase in global supply chains.

These tariffs were originally intended to protect domestic industries form global competition. With the world moving towards a global economy that is more integrated, organisations now rely more upon sources throughout the world for raw materials.

Organisations now have access to the best resources from around the globe and has allowed global sourcing to become part of most procurement processes with organisations.