Is globalization good

Document Type:Essay

Subject Area:Business

Document 1

It has enabled worldwide access to resources like cheap raw materials which has helped many firms to be cost competitive in both the overseas and their own markets. It has also helped in global sourcing which has enabled most firms to acquire cheapest raw materials from around the world. Access to large market also increases the demand for the products of the local firms and hence they benefit from the economies of scale and therefore leading to a reduced average cost of producing the commodities (Ahmad, 2013). Globalization has also boosted inward investment between economies and has, therefore, benefited the recipient countries. The benefit includes the sharing of technology and knowledge. Globalization results from advancement in transportation and communication technologies (Ahmad, 2013). Due to interactions between nations and individuals in the early 18th century, it let to the growth of international trade, culture, and ideas.

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Globalization has other numerous definitions in various countries; these definitions include, ‘globalization is a web of complex processes that expand and intensify worldwide cultural, economic, political and technological connections and exchanges’ Dr. Cairo. From this definition, we can deduce that globalization is the interconnected web of economic, political, social, technological and cultural processes that affect before directly and indirectly worldwide (Amin, & Thrift, 1995). Other upgrades such as telegraph, internet and new mobile phone designs that have boosted telecommunication is another factor that has led to globalization. International Monetary Fund (IMF) in 2000 identified four basic aspects of globalization as trade and transactions, investment and capital movement, migration and movement of people and knowledge dissemination. There are other environmental factors that have been linked to globalization such as global warming, air pollution, over-fishing and cross-boundary water.

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In broad terms, we can say that globalization affect and are affected by work organization and business, social and cultural resources and the natural environment. Literature review and other literature work always categorize globalization into three major areas which are cultural globalization, economic globalization, and political globalization. This has been realized through consumption of cultures that have been diffused by popular culture media, the internet, and international travel. It broadly involves the formation of shared knowledge and norms with which people associate with (Kraidy, 2017). Cultural globalization has been seen through diffusion of businesses such as fast food chains. There are two most successful global food and beverages companies that can be ranked under this category, McDonald's, and Starbucks which are American companies with over 36000 and 24000 locations operating worldwide as of 2015.

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Political globalization This Refers to the growth of the worldwide political systems, both in complexity and in size. For the poor and smaller countries, globalization has helped them in low-cost wholesale goods such as clothing, electronics and raw materials that are kept low by cheap domestic labor rates. According to the data extracted from World Bank, over the last 50 years, the world’s dependency on the exports has doubled as a result of eastern economies accessing the global marketplace through globalization (Das, 2008). The countries that can be placed under this category include Turkey, Korea, China, and Thailand. Other winners of globalization are the cheap producers and high-quality producers. This is because they are able to sell their goods and services at lower prices and in larger quantities and hence they will make more profits.

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This, in turn, lowers production costs of production. Aldwin’s book, The Great Convergence – Information Technology and the New Globalization, looks at the pros and cons of off-shoring business functions and the new possibilities for growth for the collective workforce. The following is a list of the top predictions that result from new globalization according to the book; It will affect national economies with finer degree of resolution; in new globalization, the impact is more individual because the winners and the losers are no longer grouped by skill groups and sectors but it can vary across workers who possess the same skill but still working in the same sectors (Osland, 2003). That's how new globalization impacts modern businesses in terms of production.

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It is also noted that the impact of new globalization in business will be more sudden and uncontrollable this is because of the rapid growth in technology hence transmission, storage, and computing capacity will be faster doubling every year at a very high rate. Assessing Globalization Globalization has benefits and drawbacks of Trade and Integration A research done by Andrew Kohut, President of the Pew Research Center and Director of the Attitudes Project showed that globalization continues to be a divisive subject among political activists, business leaders, academics, and policymakers. Some of these people look at the rapid political and economic changes taking place around the globe and see injustice. Others look at the changes and see progress. On both sides of the debate, much discussion dwells on the elites oh what do average citizens think around the world about the powerful forces transforming their societies.

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The survey research conducted showed that many of them embrace the idea of globalism albeit cautiously. The production, not goods and services tends to be cheaper in the developed counties as compared to the less developed nations and therefore when these products are introduced into the markets, due to high quality and cheap production they will earn more profits as compared to those from less developed countries which may be of lower quality and their cost of production is very high. References Ahmad, A. Globalization of Culture (or Cultural Globalization). In New Age Globalization (pp. Palgrave Macmillan, New York. 1 Winners of Globalization. De la Dehesa, G.  Winners and losers in globalization. John Wiley & Sons. Friedman, T. S. Broadening the debate: The pros and cons of globalization.

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