For this research essay, globalization is selected as a research topic. Globalization refers as a process by which business organizations expand their international influence all around the world. In other words, it can be said that, globalization is the process of international integration by which business firms start to operate their businesses on international scale. Along with this, it is a process of interface as well as assimilation among the natives, companies, and governments of different nations. Globalization is the process of growing and expanding the businesses as well as technologies all around the world. On the other hand, this research essay would be advantageous to describe the major concepts related to the globalization. This essay would portray the countries or industries that are affected by the globalization. Furthermore, this research essay would also valuable to demonstrate the positive and negative cases associated with globalization with the help of facts as well as figures related to globalization.
Globalization is a common term that is widely used in the 20th century. The term globalization depict that the world has become integrated by culturally, socially, economically, and politically all through the development of communication, transportation, and technology. It is the method of incorporation and exchange of cultural, social, and financial aspect of people outside national boundaries (Dahlman, 2007). Along with this, globalization has played a major role to improve the economies of nations in more beneficial manner. The development in technologies has allowed businesses to operate their businesses beyond the nation boundaries. Moreover, just because of globalization, companies become more creative as well as competitive.
Globalization is a process of cultural, political, and economic integration. It has broken down boundaries among different nations. Moreover, both developed as well as developing countries have been affected by globalization. It is because of with the help of this, business organizations become able to adopt and implement different innovative strategies for the growth of their businesses. These strategies of companies were totally based on the new ideological trends that were helpful to make balance between the rights and interest of people as well as business organizations (Goldberg and Pavcnik, 2007). Moreover, with the help of globalization, both developed and developing countries become able to operate and compete globally. The origin of globalization has made dramatic changes for leaders, labor and management by legally accommodating the involvement of workers and government in the development and implementation of policies as well as strategies of business organizations. Also, business corporations also implemented diversification strategies to reduce risks and to operate as well as expand their businesses in both national and international marketplaces (Lee, and Vivarelli, 2006).
In addition to this, globalization brought restructuring at the national as well as international levels. Particularly, it brought restructuring of international trade, production, and financial markets for both developed and developing countries (Goryakin, Lobstein, James and Suhrcke, 2015). Along with this, globalization has influenced industrial economic as well as social relations through multilateralism and microeconomic trends including business competitiveness internationally. The revolution of production systems has influenced the business structure, labor process, and application of technology in a positive manner. The event of globalization is drive by four major factors such as: globalization of products, globalization of financial markets advanced technologies, and deregulation. The globalization of product as well as financial markets has increased economic integration in both developing and developed countries. The advanced technologies have offered new distribution channels to the business organizations of both developing and developed nations (Roberts, Hite, and Chorev, 2014). Moreover, deregulation has permitted entry of new providers to increase multinational existence in the business activities.
In the same manner, globalization offers growth opportunities to both developed and developing countries by decreasing macroeconomic volatility on output as well as consumption of nations. Moreover, with the help of globalization, developing countries become able to improve their economic growth and resolve the deficiency problems within the countries (Al’Abri, 2011). Prior to globalization, business firms of developing countries were unable to take advantages of world economy because of the trade barriers. They were unable to share the economic growth similar to the developed countries. But, after the globalization, the World Bank promoted developing countries to go all the way through market reforms as well as radical changes with the help of large loans (Cornia, 2001). Consequently, with globalization, developing countries become able to remove trade barriers to take advantages of the world economy.
On the other hand, with globalization, developing countries become able to improve their employment level. It is because of developed countries begun to invest in developing countries and also created job opportunities for the people of nations. As a consequence, there can be seen rapid growth in the developing countries especially in India and China. This rapid growth reduced the level of poverty and raised the standard of living of people of developing countries (Jaumotte and Tytell, 2007). Along with this, globalization has established strong relationship between developed and developing nations. Developing nations depend on developed nations only for resources and technology. Developed nations depend on developing nations for raw materials, commodities, goods, oil, and so on. So, globalization has developed a stronger relationship between developed and developing nations. Moreover, with the help of this relationship, both developing and developed nations are benefited equally.
In addition to this, globalization is an inevitable phenomenon that affected all the aspects of developing countries and developed countries. For case, industrial and financial globalization increased sustainability and created lots of opportunities for both developed as well as developing countries (Kose, Prasad and Terrones, 2007). Along with this, developing countries are widely affected by globalization. It is because of now developing countries are proficient to attract foreign investors and retain foreign capital for the economic growth of the nations. Moreover, with globalization, free trade between developing and developed countries has increased. Now, business firms are able to transport goods, commodities, and services in an easier and faster manner. The free trade reduced the chances of war among nations and improved the economy growth of the nations as well.
Along with this, globalization developed health as well as education systems within the developing nations. The education level of developing countries has increased with globalization. It is because of globalization provided job opportunities and prompted higher education within nations. It should be noted down that health and education play a major role to improve the economy of nations (Fagan and Munck, 2009). With globalization, there can be seen a strong relationship between health & education system and economic growth of the nations. The economic growth directly improves the living standards as well as life expectancy of people of the developing nations. Moreover, with globalization, the illiteracy rate of developing countries has been reduced. The life expectancy and living standards of developing nations has improved throughout economic gains from globalization. There are lots of international organizations including WHO (World Health Organization), NGO (Non-Governmental Organization), and UNESCO (United Nations Educational, Scientific and Cultural Organization) those play a major role to reduce illiteracy rate and to improve life expectancy & living standards of the people of developing nations (Ritzer and Dean, 2014).
Apart from this, with globalization, cultural differences have reduced between developing countries and developed countries. Cultures of numerous developing countries have been changed all the way through globalization. They copied the culture of developed countries to take advantages of world economy (Cazdyn and Szeman, 2011). Prior to globalization, the developing countries were not able to know the cultures of the other countries and developed countries as well. Moreover, because of important paraphernalia of globalization such as satellite, the internet, and advanced technologies, developing countries become able to know that what strategies and tactics are used by developed countries for their economic growth and development. Also, all the way through the globalization, both developing countries and developed countries become able to know each other in a better manner (Bennett and Tomossy, 2006). So, it can be said that, both developing and developed countries are equally affected through globalization.
Globalization has affected the developing and developed countries in both positive as well as negative manner. Globalization has created troubles for poor countries. The major reason behind it is that globalization has developed inequalities between the rich and poor countries. Moreover, with globalization, the rich countries are becoming richer; and the poor countries are becoming poorer. The benefits of globalization are not universal. For case, in past two decades, developing countries such as India and China have developed faster than the rich countries. But, the rural areas of China are still suffering the situation of poverty (Dumitrescu and Vinerean, 2010). On the other hand, there are numerous positive and negative cases related to globalization. These cases are described as below:
Positive Cases: There are numerous cases those are helpful to show that how globalization has worked in the favor of business organizations. For example, the case related to McDonald’s and Coca-cola can be considered as positive cases of globalization. With globalization, both these companies become able to develop and expand their business within international markets. McDonald’s that is one of the oldest chains of restaurants in the world benefited through globalization. After globalization, McDonald’s opened its branches in both developing as well as developed nations. The company became able to understand the tests and preferences of the customers of different cultures (Hitt, Ireland and Hoskisson, 2012). Along with this, the success and growth of McDonald’s totally depend on the concept of globalization. Now, the company has around 31,000 restaurants in more than 110 countries. It employed approximately 1.5 million employees to operate its business all around the world. Also, the company supports initiatives to ensure its global brand to take advantages of global economy. People may found McDonald’s around every corner of the world. It is a clear sign of globalization; and also a positive case of globalization. Due to globalization, McDonald’s has achieved an enormous success on a global scale (Ritzer and Atalay, 2010).
On the other hand, globalization played a major role in the growth as well as success of Coca-Cola. The major objective of Coca-Cola was to be everywhere all around the world. Moreover, globalization fulfills the objectives of the company in an effectual manner. The company made all its possible efforts to build its image in the eyes of customers. In the beginning, the company wanted that everyone around the world should enjoy its products to fulfill their needs and wants properly (Banutu-Gomez, 2012). Along with this, the company believed that customers of different cultures enjoy the same taste around the world. Coca-Cola has become one of the most famous brands in the world through globalization. Moreover, just because of globalization, the company became able to capture the consumers’ loyalty so they may continue use its products to fulfill their needs properly.
In addition to this, the case of Nike Inc., Starbucks, and so on are the other positive cases of globalization. All these companies expand their businesses in both national as well as international markets through globalization (Dumitrescu and Vinerean, 2010). Globalization generated numerous positive effects for the growth and success of the business organizations. The companies became able to expand their businesses in the international market; and also to take advantages of the world economy for the growth of businesses. Along with this, globalization provided a global scale to trade; so the companies may expand their marketplaces and enjoy economies of scale in an effective and an appropriate manner. Globalization has promoted foreign trade all around the world. Products and services that people only found in developed countries can found in developing countries due to globalization. Now, People and business organizations can get anything from any country of the world. It is because of globalization has promoted import and export between developed and developing nations (Goryakin, Lobstein, James and Suhrcke, 2015). In this way, all these cases and thing indicate towards the positivity of globalization.
Negative Cases: There are numerous negative factors related to globalization that influenced the success and growth of the business organizations in negative manner. The most negative effect of globalization can be seen on the oil companies. The companies increased the oil-prices after globalization. It is because of now they can trade oil in each and every nation of the world (Nissanke and Thorbecke, 2007). As a consequence, the demand of oil increased in a dramatic manner. Moreover, due to high demand of oil, oil countries increased the oil prices. They only want to improve the profitability and take advantages of world economy. But, it was very dangerous for the nations those are weak in their financial aspects. They were unable to pay high prices of oil. In other words, it also can be said, that high increased prices of oil create a gap between developed and developing nations. The main reason behind it was that developed countries were able to pay high prices of oil; but developing countries were unable to play high prices of oil (Adesina, 2012). So, it is a negative case related to globalization.
On the other hand, globalization led to unemployment level within nations. This is also another negative case or affect of globalization. There can be seen an increased competition among business organization due to globalization and global economic integration. So, the business firms want to cut their costs, and also improve their productivity, profitability, and efficiency. As a result, they decide to reduce the number of employees; and this situation increased the level of unemployment within both developed as well as developing countries (Murshed, Goulart and Serino, 2011). Moreover, Indonesia is an example that faced the situation of unemployment as well as poverty as a result of unemployment. Along with this, globalization spread western culture within developed and developing countries. Africa is an example that followed the western culture instead of its local culture that led to deficit within nations.
In addition to this, globalization has its negative effects in the developed nations. Globalization has developed jobs insecurities among the people of developed countries. People have lost their jobs due to the development of advanced technologies. Moreover, globalization has led to misuse of labor. Safety standards are ignored by business organizations to produce cheap goods and also to improve their productivity as well as profitability (Adams, 2013). Along with this, globalization has led to variation in prices. The developed countries have reduced their prices to earn more profits in the competitive business era. Consequently, developing countries also reduced their prices and these things also reduced the profitability of business organizations. These are the negative cases or affects of globalization.
Conclusion
On the premises of the above discussion, it can be said that, globalization has opened new doors for the growth and success of businesses in the international market. Business firms became able to take advantages of the world economy for the economic growth of the nations. Along with this, it is also observed that, both developing as well as developed countries were equally benefited through globalization. Globalization developed strong relationships between developing and developed countries. It promoted economic integration and corporation between nations. Moreover, it is also assumed that, there are numerous positive and negative cases related to the globalization. On the whole, globalization is still beneficial for the economic growth of the developing as well as developed nations.
References
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