Globalisation vs Regionalism By-Devika Rajeev Introduction The advent of international trade has helped economies all over the world. Be it a developed country which is looking for the best option in terms of skilled and unskilled labour, natural resources etc, or a developing country looking to increase employment opportunities, investments etc. Not only has this helped economies, but has helped to share popular culture around the globe. This started with the process of globalisation but recently there is increasing trend of regionalism in place. Even though technically both lead countries to open up it’s economies for trade there are some important differences between the two which will be identified here.
The trend toward a single global economy is expanding markets and providing opportunities to managers.today, countries are going to work together as more of a global economy. Globalization is a process of interaction and integration among the people, companies and governments of different nations. Globalization not only has effects on the economy, but also the political systems, environment, culture and law. Globalization can help to expand a company's market. Expanding the market where an organization does business and promotes its products opens up a larger customer base and possibly greater profit margins.
Globalization is a natural phenomenon which refers to the changes in the world where countries are moving from self-contained countries and toward a more integrated world, in both cultures and markets. Hence, globalization of business is the change in business from a company associated with a single country to one that operates in multiple countries . The impact of globalization on a business can be easily be categorised into two broad sections, which are market globalization and production globalization. Market globalization can be specifically defined as the barriers declination to selling in another countries other than the home country. This huge change will makes it easy for a company to begin selling internationally.
Also, they reduced the barriers to exchange and signed many international agreements to promote trade and investments. Mostly, the issue that people think in globalization is the trade in good and services. It is one of the most noticeable aspects in globalization, however, not only the local trade is known but also the international investments are the one that brings the world together. This type of investments can change whole methods of products through the transfer of technology, knowledge, and management techniques. Moreover, globalization and the foreign investments put up many questions about the change of culture, political relationships, and economics around the world.
The global economy has enabled customers to enjoy a buyer’s market where the company with the most competitive price possible for a product or service receives orders from customers around the world. The burgeoning world ... ... middle of paper ... ...ad of capitalist organizations that are no longer constrained by borders are replacing governmental control, and corporations are becoming more heterogeneous and adapting to people who are from different nationalities and cultures. In the modern global economy professionals who possess an understanding of sociology, psychology, communication, and management are more likely to succeed in business. “Globalization has changed us into a company that searches the world, not just to sell or to source, but to find intellectual capital - the world's best talents and greatest ideas” as cited by Jack Welch N.D. Works Cited Greenspan, A. (2008).
Prices may be lowered on certain goods as a result of this. Furthermore, Globalization also increases communication between different nations throughout the world, which in turn may create allies or "friends" among other countries in times of crisis. Different nations can work together to enhance the business and general living standards of the society as a whole (Rosenau, World Politics 98/99, pp. 15-16). However, there may be some serious downfalls to Globalization.
The decline in trade and investment barriers has enabled the international business to growth further. Once a business exports/imports goods from other countries or commits to FDI, it becomes an international business. Lowering trade and investment barriers are characteristics of international business. This allows growth in FDI and moves towards regional economic integration. The advantages of the political driver on international businesses include; the diverse variety of goods available to consumers through the new trade theory, low prices, economic growth and competitive advantages.
The advantages of free trade can be seen through domestic markets and the growth of the world economy. T... ... middle of paper ... ...ystem primarily responsible for promoting global competition. Free trade also promotes shifts in production so as to fit the “comparative advantage” model. Though free trade is widely practiced concerns with how to regulate free trade, something supposedly unregulated, countries have to subject themselves to the controversial institutions of the IMF and WTO. Fair trade policies while potentially creating smaller markets support workers’ rights in both the U.S. and developing nations.
Globalization: Globalization can be seen as reduction in barriers between countries. Globalization has opened the world market for international trade. The movement of globalization have contributed to the spread of knowledge, culture, technology, and information across borders. The increasing role international expansion across border has also increased the focus of multinational corporations to international business strategies. Organizations today in developed nation or in developing nation are going international due to increase in competition.
Globalization Globalization affects this world and the people of this world in many ways. It is the idea of making the entire world like a single country. Globalization is the connection of different parts of the world. Globalization results in the expansion of international, cultural, economic, and political activities. As people, ideas, knowledge, and goods move easily around the globe, the experiences of people around the world become more similar.