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 of the world economy is the integration of economies throughout the world through financial flows, the exchange of technology and information, trade and the movement of people” (IMF, 2006). Globalization brings opportunities with the opening of the borders. There is flow of resources even in the form of capital, technology and labor. Globalization gives opportunity to people to work with people across the globe and acquire new skills and develop individual personality at individual level. At the national level, globalization plays a very important role for both the developing and the developed nations.
This goal of growth in economy can be achieved through international trade, which involves many countries. Despite the obvious gap between developed and developing countries, economic globalization can manage to bring out positive results for both countries. Benefits arising from economic globalization can be shared among different organizations in various nations. When countries get involved in global trade, companies in those respective countries also benefit from such a move. Nations as well as business organizations are able to explore new markets and therefore increase their output leading to economic growth.
Globalization can in general be described as the growing interaction amongst integration of activities. This mostly affects economic activities of human societies around the world. Nevertheless more realistically, globalization refers to the increasing economic interdependence of countries or states internationally through the escalating amount and variety of cross-border relations and transactions in goods and services and of global capital stream. It is also through the extra speedy and widespread diffusion of technology. In this case therefore, globalization includes both a description and a prescription.
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... ... middle of paper ... ...sto.com Friedman, Thomas L. (2008).
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.
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.
Economic globalization and its impacts have generated widespread debate across and within countries worldwide. Analyze the ways in which critics and defenders of today’s global political economy differ in their assessments. What is your position in this regard? Economic globalization is defined as the increase in the interdependence of economies worldwide that resulted from the opening of foreign markets and easier flow of commerce from one country to another. The creation of the global economy is made possible by the globalization of new ideas and technology, allowing information and wealth to spread at a faster rate than in the past.
Globalization can be defined as the growing interconnection of the various nations worldwide through the increasing volume and variety of cross border transactions which results in capital flow , and also through the more rapid and widespread dispersion of technology. Globalization is the harvest of human modernization and technological progress. It refers to the increasing amalgamation of economies across the globe though trade and capital flows. The term also refers to the migration of people (labor) and technology across international borders. It has the potential of making societies richer through trade and creates an environment of knowledge and understanding across the world.
Globalization started some several centuries ago but has become an important strategic element of many businesses in the modern economy (Lechner 2009). This is due to the huge competitive advantages, which it offers to an organization. Globalization also allows expanding the market niche, reducing costs by moving the operations to places with low overheads, and expanding the business access to skills (Scholte 2005). Many businesses are taking advantage of technologies such as the internet, video-conferencing, and fast transport, to expand their operations internationally. Globalization has changed the world economies, hence the global politics, which are anchored upon the economic muscles of the different nations.