Table of contents
1. Introduction - 4 -
2. Determination of globalisation - 4 -
3. Emergence of Globalisation - 4 -
4. Drivers of Globalisation - 5 -
4.1.1. Diminishing of Trade Barriers - 5 -
4.1.2. Technological Changes - 5 -
5. Impacts of Globalisation and its Challenges - 6 -
6. Conclusion - 8 -

Abbreviations
(1st ed.) First edition
(Ed.) Editor
(Eds.) Editors et al. And others
GATT General Agreement on Tariffs and Trade
(n.d.) No date
NAFTA North American Free Trade Area
(p.) Page
(pp.) Pages
USD United States Dollar
WTO World Trade Organisation

1. Introduction
The issue of globalisation is multifaceted and therefore a short overview is provided. The structure will lead through definitions of
18, 24; Dowling et al., 2009, pp. 14-15). Keeping consumers within their domestic markets was almost not possible anymore, as they consequently had a global choice of products and services. This meant in turn for companies the opportunity of distributing their product across an international market area, but also a global competition. Furthermore the idea of outsourcing production sites to locations where goods can be produced cost efficiently and in a high quality became attractive (Hill, 2009, p. 24; Dowling et al., 2009, pp. 15-16).

5. Impacts of Globalisation and its Challenges
The determination of impacts derived from the process of globalisation is very complex as the whole process is highly interconnected. The following chapter tries to outline classifications of impacts, which are relevant for this task. Globalisation should not only be seen as an interaction within a politico-economic system, as it affects people’s everyday life (De Ruiter, 2000, p. 31) and therefore it generates challenges for the economy as well as for individuals. For this reason the following impacts refer to an economical and socio-cultural aspect.
Owing to the aforementioned fact of the diminishing of trade barriers, the process of globalisation had been unstoppable. This affected the economy by a vast increase of world trade, which rose from 1950 to 2007 from 320 billion USD to 6.8 trillion USD and also an immense rise of foreign investment (Farrell, 2007).