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side effects of globalization
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This essay focuses on the topic of globalization, taking along several other factors with it. Increasingly in the world, it becomes obvious that the globalization is affecting almost all the businesses of the world. Every market in some way or the other is following the principles of globalization. For example, McDonalds is a chain of restaurants working in collaboration to deliver their customers with the best product and to achieve this McDonalds follows the concepts of globalization. This essay will discuss anc ethnographic study at McDonalds examining whether it confirms or denies the claims made about globalization. The ethnographic study took place at McDonalds’ shop, Leeds, local market in the afternoon of Monday, 17th January 2011. From away I could observe the huge logo of McDonalds. I stood at the entrance and stared at the shop for few seconds. The shop was far more elegant than the average McDonald’s. The interior has a minimal style with posh chairs, tables, black art deco fixtures, beautiful paintings and attractive lights and draperies. There were large windows so it was impossible for customers to see into the Harvey Nichols store. Also, outside were window boxed filled with flowers or greenery. I could hear some relaxing music. At first glance, I noticed that customers were people with different age groups, genders, ethnic classes, social classes and cultural backgrounds. The language which was more spoken was English. [Without thinking, I was moving towards the counter, I faced] the girl behind the counter [; she] was wearing a red t-shirt with a cap and a hut. She seemed to be in a rush to handle the orders. Despite that, she was friendly and with a smile on the face to welcome the customers. The most co... ... middle of paper ... ...International Economics. Krishnan, R. (1996). The first revolt against globalization. Monthly Review, vol.48, no.1. Krugman, P. (1994). Does Third World Growth Hurt First World Prosperity? Harvard business review Oman, C. (1994). Globalisation and regionalisation: the challenge for developing countries. Paris: Development Centre studies. Osland, S.J. (2003). Broadening the Debate, the Pros and Cons of Globalization. Journal of Management inquiry, Vol. 12 no. 2, pp.137-154 Rodrik, D. (1997). Has Globalization Gone Too Far. Washington: Institute for International Economics. Rosenau, N. J. (2006). The Study of World Politics: Globalization and governance. Abingdon: Routledge. Valaskakis, K. (1998). The challenge of strategic governance: Can globalization be managed? Optimum, vol. 28, no. 2, pp. 26-40. http://www.mcdonalds.co.uk/ (accessed 15/01/2011)
The discernments provided in this book by a distinguished ‘insider’ is manna for economists, investment banks, governments of both developing and developed countries and just about anybody who wants to learn and understand economic development, the politics of international business and globalization, and public policy formulation with regards to globalization and liberalization. The author provides a holistic view of all aspects of globalization – the good, the bad, and the ugly. International organizations and business practitioners in particular will be wise to glean valuable insights from this book.
Globalization’s shift to large scale production has forced companies to move towards localization, or expanding to other nations, and less standardization. Localization allows corporations to monopolize the power over cultures of other nations. In fact according to the World Bank’s World Development Report in 2000, of the world's 100 largest economic entities, 51 are now corporations and 49 are countries (Anderson, Sarah). National governments have lost their grasp on world power. The top corporations now suppress the combined economies of the countries and not to mention control the working conditions of countries they hold much influence over. Allowing these corporations to do as they please, charge what they want, and pay less than expected. After all how else would they be so powerful without excess profit? For example according to one source, 60% of the banana trade is controlled by only 3 companies and the all fami...
Globalization has influenced almost each aspect of life in almost every nation. From economic to social to culture, this widespread exchange of goods, services and ideas have affected changes around the world. Even though the cultural influence in globalization is of slight significance to policy makers, its power has tremendous consequences to the nations involved and its people. Food is the oldest global carrier of culture.” Any changes in the foods that we eat, in its preparation, the way it is served and consumed diminishes the traditional beliefs of the people.
James Watson’s McDonald’s in Hong Kong is a textbook example of globalization. According to Webster’s dictionary, globalization is defined as “worldwide integration and development”. In McDonald’s in Hong Kong, Watson discusses a well-known and successful American fast food chain migrating over seas and embedding itself in the Hong Kong culture. Although Hong Kong was already recognized as an extremely transnational civilization, there were worries that the country would lose cultural identity. The fears were that Hong Kong would become more Americanized and lessen their ties to the Cantonese ways.
Dewhurst, M., Harris, J., & Heywood, S. (2011). Understanding your 'globalization penalty'. Mckinsey Quarterly, (3), 12-15.
According to Hanser and Gomila (2015), “Globalization is the process by which societies, cultures, and economics around the world have become integrated due to advances in communication and transportation technology, as well as the passage of laws and treaties that facilitate this integration” (p. 7). The concepts of globalization have impacted small, medium and large businesses in the United States. Globalization has influenced the way leaders think, make decisions, and lead their organization. We are surrounded by super information highways and modern technology, which makes it easier and accessible to conduct business across nations.
Jonathan Luckhurst, 'From Globalization to Global Governance?', Chapter in Potiño Manfer, R. and Rios de los Angeles, A., eds. (2011) Contemporary Themes of Economic Law Mexico City Editorial Porrúa and UNAM
As a final point, McDonald’s “First Day” uses many techniques to convey their message to its audience. They use things such as color schemes to relate to their audience. They also use color schemes to get the audience appeal to their credibility. These color schemes play an enormous factor in McDonald’s “First Day." These color schemes help McDonald’s gain more customers because customers can relate. This use of pathos, ethos and color schemes is what communicates with audiences to go to McDonald’s and enjoy a
Gilpin discussed the MNC’s evolution through the lenses of a number of business economic theories. Using Raymond Vernon’s Product Cycle Theory, the overseas expansion of American companies until the 1960s was shown as a means of preempting foreign competition and preserving monopoly positions, which was possible then because of the wealth and technology gaps that existed between the US and the rest of the world (282-83). Following the closing of such gaps, Dunning and the Reading School’s Eclectic Theory explained the next stage of the MNC’s evolution as propelled by the great leaps made in technology and communication, which made internationalized management both possible and viable (283). Michael Porter’s Strategy Theory, meanwhile, asserted that the MNC is now in the era of strategic management, wherein activities and capabilities spanning borders allow it to “tap into the value chain” in the most advantageous positions (285-85). Gilpin made an interesting point, however, that MNCs are oftentimes the result of market imperfections and unique corporate situations. In many instances, the decision to expand a firm’s operations in another country was a means of circumventing protectionist measures and trade barriers, or simply to curry favor with governments, as practiced by IBM (280...
"Studying McDonald's ABroad: Overseas Branches Merge Regional Preferences, Corporate Directives." Editorial. Nations Restaurant News 11 Nov. 2005: n. pag. MasterFILE Premier. Web. 5 Mar. 2013.
Globalisation is a vast concept. It is mandatory for the survival of almost any nation’s economy. It is the network of interdependence between countries for products, services as well as basic needs. Globalization has its’ myriad advantages as well as disadvantages which we may not have acknowledged yet. I intend on discussing some o...
Globalization assists in the diminution or eradication of constraints by States in relation to exchanges across borders. Further to this, the said diminution and eradication of State border constraints kindles an increase and integration of multifaceted global systems of production. This has ultimately led to improved levels of exchange of goods and services. Thomas Friedman is of the opinion that globalization is a growing phenomenon and with that will have enormous influence in the business organization and practice just like globalized trade, outsourcing, supply chaining and political forces have had in the past (Friedman, 2008). Globalization can thus b...
In order to understand McDonald's structure and culture and why they continue to be the world's largest restaurant chain we conducted a SWOT analysis that allowed us to consider every dimension involved in the business level and corporate level strategies.
Globalization remains a pivotal topic in many schools of thought, and continues being a topic of controversy even in local economies today. Perhaps the reason for this is integration and competitiveness the world over. Conceivably, even more than integration, is the competitiveness of organizations, has possibly facilitating the fascination and misconception about of globalization. Nevertheless, globalization has brought about a number of effects influencing the design and geographical location of the organization. However, globalization has effectively placed the world in a bubble, or maybe one could equate the changes to being placed in an envelope.
Stonehouse, G., Campbell, D., Hamill, J. & Purdie, T. (2004). Global and Transnational Business (2nd ed.). Chichester: John Wiley & Sons.