Globalization is the process of integrating the economy of the country with world economy. It is a movement towards greater interaction, integration and interdependence among people and organization across borders. The strongest manifestation of globalization has been the increasing economic integration among countries in trade and investment.

The importance of globalization is as follows : 

(a) Efficiency: Globalisation focuses on the best quality of services and goods. It encourages the global trade and commerce. It increases competitive nature which makes firms more efficient.

(b) Transformation of technology: Through this technology, improvements are made all over the world. As a result, all countries can reap the benefits of improved technology by enhancement in income and increase in jobs.

(c) A global village: The concept of global village mainly brings a feeling of oneess among the citizens of the world. Contacts are made easily accessible through technology and communication.

(d) Mobility of labour force: It allows free movement of people in search of jobs or getting education at global level. Hence mobility is made simple and easy.

(e) Emerging global competition: Global competition is emerging as a result of growing skill and techniques. The world is looking for better opportunities and performance at competitive rates.

(f) Outsourcing: This is an important outcome of the globalization process. In outsourcing, a company hires regular service from external sources and from other countries.