seems to be used predominantly in a wider and more descriptive sense for economic cross boarder trade, â€œGlobalizationâ€? is a fairly new term, used to describe the process of a transforming international trade towards more liberalization and its impacts that can supposedly be associated with social-cultural and political changes on a global scale. It is most commonly used to discuss the relationship of trade increase in the past decades with issues like free markets, dissolving of purely national companies, global inequity developments, reduction of national political influence and reduction of cultural diversity in favour standardization and integration as regions become increasingly interconnected and inevitably dependant on each other (e.g. Spero/ Hart 2003). The key semantic difference of both terms as defined in this work shall be, that International Business describes a factual situation, where cross boarder trade does take place and deals with associated developments that influence its operations on the basis of a stable set of environmental determinants.
Globalization of the economy refers to the integration of the world economies whereby economies in the world are become more interdependence. This economic development is being achieved through cross-border movement of capital, services, goods, and technology. This trend is believed by many to be irreversible and economies will continue depending on one another. One of prominent economists who believe economic globalization cannot be reversed is Gao Shanguan. Organizational development efforts are the laid down plan that is supposed to spur the organization to achieve its goals.
1. Introduction The current integrated and interdependent world economy is the outcome of the process of Globalization. Various definitions of Globalization are available. As per Block (2004), in his research paper, has defined globalization as “Intensification of world-wide social relationships which link distant localities in such a way that local happenings are shaped by distant events and, in turn, distant events are shaped by local happenings.” The IMF (2008) claims that globalization is a result of advancement in technologies and modernization of the people. It is the result of growing incorporation of economies in the world, predominantly through the movement of labor, technology, knowledge, services, merchandise and investments across international borders.
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However, I will be solely discussing the economic aspects of globalization and how it effects the prosperity and living standards of people around the world. Though the current international economy faces many challenges, the idea of trade liberalization is superior to its alternatives. Economic globalization improves the world and is ultimately good. By integrating markets, globalization generates economic growth by fostering efficiency and specialization. In addition, globalization uplifts those in poverty and creates more technologically advanced societies.
Globalization is the tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of different markets. (“Globalization,”) It also has had the effect of not only increasing the international trade but the cultural exchange. However, when it comes to globalization both its advantages and disadvantages have been greatly scrutinized and heavily debated in the past few years. People who believe in globalization say that it helps the developing nations “catch up” to the much faster industrialized nations. This happens through increased employment and a great amount of technical advances.
Globalisation and its discontents. Palgrave, Basingstoke. Meinhard, S. and Potrafke, N., 2012. “The Globalization–Welfare State Nexus Reconsidered” Review of International Economics, Vol. 20(2) Mullard, M., 2004.
Globalization can be defined as the system of interaction among the countries of the world in order to develop the global economy. It also refers to the integration of economics and societies all over the world (http://hotbabefatchicks.hubpages.com/hub/Definition-of-Globalization). Globalization can be both advantageous and detrimental to developing countries. Some of its advantages are increased external finance, improved technology and political conformism. Disadvantages of globalization include death of small and medium businesses, loss of cultural identity and the effect of foreign policies on domestic economic development.
The process of globalization is accelerated by the dynamic nature of technology, change in price, and liberalization of trade makes it easier for countries to merge their trade rules, minimizing competition. The countries of transition show integration of the global economy as characterized in specific regions. The concept of globalization is complex and controversial happening over time. The growth of globalization over the year’s takes time as numerous features requires the global economic integration. Globalization ensures internalization of the products produced by different countries.