In the past decade, globalisation has become one of the greatest driving force or dominant economic political and social theme. It involves the process of breaking down the international boundaries which will increase integration between different countries and have an international influence on all aspects of life. This includes trade and investment, distribution of income, financial markets, environment consequences, business cycle, government economic policies and most of all; growth and development. Economic growth is an expansion of a country's productive capacity or the increasing ability of a country to satisfy the material wants of its people over a period of time. However, economic development takes account of other features such as lower levels of poverty, unemployment; improved health and nutrition; and preservation of the environment. .
Globalisation refers to the development and deepening of world markets in capital goods and services by increasing occurrence of commercial exchanges across national boundaries. There are basically 5 types of economics that are being influenced by the impacts of globalisation. .
1) High income economies are also known as the industrialised or developed economies. These economies have a higher standard of life, economic growth and development compared to the other 4 types of economies. This includes countries such as Japan, United States, United Kingdom and etc. .
2) Developing economies are economies with a relatively lower economic growth, development and quality of life compared to other economies. These economies struggle to achieve higher standard of all aspects and to compete with other economies. Such category of economies includes countries from Sub-Saharan Africa, South Asia and etc.
3) Newly-industrialised economies are economies in transition from operating as developing economies to high income economies. These economies have a relatively high percentage of growth in all aspects.
