Globilization and the World Economy

Globalization as generally understood involves the increasing interaction of the world's peoples through their national economic systems. Of necessity, these economic systems are reasonably compatible and, in at least some important respects, market oriented. During the past half-century, barriers to trade and to financial flows have generally come down, resulting in a significant broadening of world markets. Expanding markets, in turn, have enhanced competition and nurtured what Joseph Schumpeter called "creative destruction," the continuous scrapping of old technologies to make way for the new. Standards of living rise because the depreciation and other cash flows of industries employing older, increasingly obsolescent, technologies are marshaled, along with new savings, to finance the production of capital assets that almost always embody cutting-edge technologies.

Importance of international business The plus points of having your business involved in the international level business are not just limited to an increased exposure leading to tremendous traffic flow and continuous sources of money for filling up your pockets. In fact, letting your business grow in a bigger market houses a wide range of benefits that you might be unaware of. That’s why we have compiled this article to help you in getting an idea of importance of international business. A detailed view of importance of international business Balanced demand and supply ratio Whenever a product’s production rate increases as compared to its demand in the market, the prices of that product start facing a decline and so does the company’s

2. Merger activity is greater during economic expansions than during contractions, and mergers are more likely in bull markets – markets in which share prices are rising and lots of buying is going on. However, unless we believe that companies purchase other companies just because they are in a position to do so, this alone cannot explain the phenomenon. I believe that merger waves occur as the result of industry shocks (regulatory changes, technological developments, etc.). However, mergers can only happen if there is liquidity in markets and capital is easily available, so this is the reason we see mergers primarily during times of economic prosperity.

With investments pouring into the economy, companies are able to make bigger profits to reward their shareholders with dividends. Although there are disadvantages of a public listed company, the advantages outweigh the disadvantages where companies are able to seek for additional funds for future expansion and growth. A public listed company also has a better reputation and credibility where it is able to contribute to the global economy.

Business’s choice of entry modes in international market and its advantages and disadvantages Introduction Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become stronger than the other competitors and in addition, to lower their expenses by getting resources they need at lower cost. Recently most of business’s activities are affected by changes that occur globally; this is a result of their operating activities with foreign markets, most of companies’ export goods, move resources with other country and also many companies get suppliers from foreign countries.

Globalization has affected every aspect of the business community in one way or another. Globalization in a simple sense is a business’s movement from one country to another. This is done for a number of reasons; amount of readily available resources, labor market, increased number of customers, and to ultimately become more profitable. There is a decisive advantage for a business to move overseas, but there are a number of drawbacks globalization creates on the local economy. When businesses become an international entity the home country experiences increased unemployment rates, the human resource department now has to manage across borders, prices of goods fluctuate, and forcing wages to decrease for unskilled workers and increase for skilled ones.

The big players of the world invest capital into the developing countries in order to set up plants, factories and industries thus not only affecting employment in that sector but in related sectors as well. This usually leads to an overall growth of the economy. Also consumers get a far more varied choice of goods and services at competitive prices. Countries in the middle east with their large expat population or even the Silicon Valley where a lot of work is outsourced to countries like India are the best suited examples of the success stories of Globalisation. But Globalisation would not be so encouraged, if not for the many international organisation who control and regulate it.

To understand the impact of globalization on human Resources you must understand what globalization is and what it does. Globalization is a “process by which the experience of everyday life, is made clear by the dissemination of goods and ideas, is becoming consistant globally. Aspects that have also added to globalization include increasingly sophisticated communications and transportation technologies and services, mass relocation along with the movement of peoples, a level of economic activity that has outgrown national markets through industrial combinations and commercial groupings that cross national frontiers, and international agreements that reduce the cost of doing business in foreign countries. Globalization offers huge potential profits to companies and nations but has been complicated by widely differing expectations, standards of living, cultures and values, and legal systems as well as unexpected global cause-and-effect linkages (Encyclopedia Britannica).” Globalization is a word in business that indicates the incorporation of an organization's operations, processes and strategies into various cultures, products, services and ideas. While globalization has evolved, the responsibility of human resource management should not be understated.

Whether they believe that the tax rate is too high or too low, there is always something to gripe about. The best policy to aid an economy’s recovery or give it an additional boost in boom times is always a tax cut. This can be engineered either as a straight up tax cut or as a rebate to taxpayers. Both methods leave more money in consumers’ and companies’ coffers, allowing them to spend more freely. This additional money in the economy causes a greater demand for goods, which in turn drives companies to produce more products.

After the main body of my argument I will summarize and conclude. Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation brings many benefits such as freer movement of capital, goods, and services; bigger companies are now able to operate in more than one country and because of that there are more jobs in less economically developed countries (LEDC’s). Of course there are a few disadvantages such as an intense competition and widening gap between rich and poor countries. First, I will examine if globalisation actually has strengthened and benefited industries in developing nations.