Globalization Versus Internationalisation

Globalisation versus Internationalisation, what do we think?

We have seen the main aspects of Globalisation and his mechanisms during this report. Now we are going to explain the difference between globalisation and internationalisation. This are two words very close but not similar. Firstly, we will define internationalisation rigorously, and then we will see what internationalisation in the world is. We will try to explain the main stage. We also define globalization to be able to compare the two terms. Finally we underline the differences and similarities of globalisation and internationalisation.

According to G. Rocher, internationalisation refers to different exchanges as economics, politics, cultural, between nations. The relations can be pacific or contentious, complementary or competitive. In other words internationalisation is an organisation of the world based on the development. For instances, to sell a product abroad, the opening of a branch of an industry in a foreign country are sorts of internationalisation of the company.

The term internationalisation is appeared and his development has increased after the Second World War and the setting up of free trade. Both, internationalisation and free trade are link because when there are no more barriers for exchanges, especially with the customs duties, it’s easier to develop exchanges between countries. It’s Adam Smith, Then Ricardo, classical economists in 18th and 19th centuries who has lauded development of international exchanges, particularly thanks to Ricardo with his law about comparatives advantages. This law says that every country earns something if they practice international exchange and if they specialise their production where they are the best. It’s for what free trade needs to be introducing to have easier exchanges and to enrich every countries. However this law has some limits.

General Agreement on Tariffs and Trade (GATT) has been created in 1947. It was an agreement to reduce customs duties, in order to facilitate trade in the world. The rate of the duties had periodically negotiated during round. The most famous was the Uruguay round Which come out of the setting up of the OMC in 1995. OMC is stronger and is a real arbiter in the economics conflicts between two countries. The main aim is to develop in the best way international trade, we can call that internationalisation.

From 1950 to nowadays international trade has increased quickly. It was faster than the international production. The exchanges are not the same, now we trade goods, services, technologies, knowledge, and also capital.

Inch by inch internationalisation led up to the globalization, as if to say a partial homogenisation of the world in several sectors. In fact internationalisation it’s a kind of forerunner of globalisation. But globalisation goes more far.

Globalisation like I have said is a quickening and a deepening of internationalisation. In fact, at an economic level it’s a kind of convergence of national market to form a single market. Globalisation tends toward a single conjuncture instead of several national conjunctures. It can be possible thanks to the boom of commercial and financial flux in the world. It’s due to the direct foreign investments, deregulations in several sectors (financials and telecommunications) and the technologic advancement (computing and communications). Globalisation allows to new countries in development to have an access to capital markets and for big firms to have new opportunities. However the economy is not actually globalised (for instance we have not a single price). There are just some parts which are completely globalised, for instance financial part.

Excluding