If globalization is fully implemented, many cultures will be eradicated and wiped out, because it doesnt matter how rich the culture is and money always has the final say. 3) Levels up and balances the competition in the market. Some scholars claim that governments are becoming less influential in the face of an increasingly economic world. China is a prime example of a country that has benefited immensely from globalization. Turning our back on globalization is not the . In todays era that is high on the aspects of social media and online selling, globalization provides all the required impetus. It's more. This threatens to undermine investment and the shared understanding that is vital to address our shared threats. It is an act that aims to turn the world into a village where different nations and people from all walks of life relate and interact without barriers. I'm Amy, This of all ideologies linked to globalization is the most sugar-coated one; because its unethical (in my own point) to decide for the people and speak on their behalf. In general, globalization decreases the cost of manufacturing. Developing countries often appeal to investors because of the huge potential for growth. This ultimately makes everyone feel appreciated for being unique individuals.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[250,250],'curiousdesire_com-leader-3','ezslot_10',109,'0','0'])};__ez_fad_position('div-gpt-ad-curiousdesire_com-leader-3-0'); The future is unknown, which is why its important to prepare ourselves for whatever might come next. They can achieve higher revenues in unsaturated markets while saving money via the lower cost structure that results from cheaper labor, rent, and materials. The needed infrastructure may not be in place. The world of business has been blessed with a boon of globalization that has worked wonders not only for the big players in the market but also for the new and small ones that are still finding their strong foothold. In short, Globalization is the free movement of goods, services and people across the world in a seamless and integrated manner. However, the exploitation of globalization is also inadequate for the less developed nations. While globalization is often referred to as a contemporary or modern phenomenon, globalization can be studied from a historical perspective, by using the historical record spanning many centuries or millennia. Proponents of globalization argue that it improves the state of the world in many ways, such as the following: Many proponents view globalization as way to solve systemic economic problems. Sometimes they must contend with different types of legal and banking systems entirely. Money, products, materials, information and people flow more swiftly across national boundaries today than ever. 2. Imagine a business call with members of eight different countries. Don't know where to start? Where it is dangerous or difficult to travel, small business owners simply use their mobile phones to reach clients and contractors. It removes the barriers set by geographic constraints, political boundaries and political economies. This shows how globalization can be a big step forward towards economic growth and prosperity for everyone, encouraging countries to produce more goods and services. Put simply, globalization is the connection of different parts of the world. The rapid adoption of mobile technology hasspurred entrepreneurism in countries like Kenya. Though it has become commonplace to say it, its true that the world is getting smaller. In general, critics blame the pressures of globalization for encouraging an environment that exploits workers in countries that do not offer sufficient protections.Studies also suggest that globalization may contribute to income disparity and inequality between the more educated and less educated members of a society. More open access changes the way products are developed, supply chains are managed and organizations communicate. This is simply on the scale of media, but it should go as far as politics. Globalization represents an unavoidable phenomenon in the history of mankind, which is making the world smaller and smaller by increasing the exchange of goods, services, information, knowledge . Definition, Importance and Examples. Wealthy, industrialized countries have shipped their trash to China and Malaysia. Interconnected markets also mean that with a lack of regulation, if something goes wrong, the repercussions will resound globally. Everest Group Names G-P an Industry Leaderin the Employer of Record Market. This means that unskilled workers may be affected by declining wages, which are under constant pressure from globalization.Into the FutureRegardless of the downsides, globalization is here to stay. Is your company a remote-first company? IBM's introduction of the personal computer in 1981 and the subsequent evolution of the modern internet are two examples of technology that helped drive international communication, commerce and globalization. They bring jobs, skills and wealth to the region they are investing or doing business in. Although technology and culture might change with time, globalization ensures that peoples values will remain the same regardless of such changes since it allows them to grow alongside one another instead of becoming isolated from each other. (2021, Mar 23). When you reach out to him or her, you will need the page title, URL, and the date you accessed the resource. On this platform, I aim to utilize my passion for writing in the best possible manner, using it as a medium to share whatever knowledge I have with the readers. Comment * document.getElementById("comment").setAttribute( "id", "a15399950c0b1dc9ec59837dea2cdb7c" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved, 6 Reasons that Explain The Importance of Globalization, Best Practices - Definition, Importance and Examples, Meaning and Top 15 Benefits of LLC Firm | Marketing91, What is Business Agility? For example, liberalized national trade policies drive economic globalization. Fill out this form to download the content in a PDF format. Anthony Giddens, the outstanding sociologist, believes that some social sectors quite simply dont share a positive feeling towards globalization and perhaps denounce it, while other sectors of the society are starting to acknowledge it, paving a way to inevitable consequences to come along capitalism. I mean, its not ok for a sociologist, especially one as profound as Giddens, to address a school of thought in such negativity. The views and perceptions of people depend on who they are, where they live and what they possess. This development also has the effect of increasing real wages by lowering the cost of living. Globalization Allows People Stick To Their Roots, 8. But they also can destroy local businesses, exploit cheap labor and threaten indigenous cultures. Meanings and Perspectives of Globalization. Effectively, this means that workers in the developed world must compete with lower-cost markets for jobs; unions and workers may be unable to defend against the threat of corporations that offer the alternative between lower pay or losing jobs to a supplier in a less expensive labor market.The situation is more complex in the developing world, where economies are undergoing rapid change. Political and economic stability facilitate globalization as well. Atmines in the Democratic Republic of Congo, where metals needed for electronics abound gold and tungsten, tin and tantalum armed militia groups, often using child soldiers, have taken over, keeping power with violence and trading minerals for guns. When medical professionals from around the world came together through Doctors Without Borders, in cooperation with the World Health Organization, and workedto eradicate SARS in Vietnam, they prepared a SARS kit afterward and developed guidelines for dealing with the infection. Air India to discontinue Vistara after merger, DS Group Partners with Lderach (Swiss Chocolate Maker), Castrols unveils a New Logo and a Refreshed Brand Identity. Plus they are also able to charge a premium for their offerings in the native market stating that the firm also caters to the international audience. The G20, or Group of Twenty, is an international forum that aims to foster international cooperation by addressing global economic issues, such as financial stability and climate change. Globalization is useful not only for opening doors to new places but also for sharing technology and information across borders so everyone can benefit from it, especially those who live in less developed countries, so they experience important improvements which increase their standard of living. One of the biggest benefits of Globalization is that there is a free movement of goods and services manufactured and offered by the firms on national and international levels. Liked this article? Increased Flow of Capital. The views expressed in this article are those of the author alone and not the World Economic Forum. Specify your topic, deadline, number of pages and other requirements. 1. Globalization has altered the way we live and earn a livelihood. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. And with this merit both the parties involved customers, as well as the companies, are able to take benefit of the same. original papers. On a similar note, globalization increases the availability of jobs worldwide which is a great thing for people because more job opportunities mean higher salaries and living standards, which in turn keeps bringing new money into the economy so it feeds itself allowing everyone to benefit from globalization. The 21st century has witnessed both. And today, every nation is dependent and interdependent on each other for some of the other requirement. As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower. Individuals who travel around the world for business or leisure andtry different foods, listen to different music, read different books, gain exposure to different media outlets, and learn to express themselves, even poorly, in another language gain a broader perspective on the world. When the firms realize and apply the Importance of Globalization, they make their tasks simpler at much-lowered costs and overheads. These 10 Countries Have Been Hit Hardest by Food Inflation, Earthquake in Turkey and Syria: How satellites can help rescue efforts, Turkey-Syria earthquakes: A seismologist explains what has happened, These are the main uncertainty drivers around the world, according to the IMF, Hites Ahir, Nicholas Bloom and Davide Furceri. This ultimately benefits many families financially and emotionally. The worlds economy is expected to grow by 4.9 percent by 2022 just because of globalization. The council should make rules to put a ceiling to the foreign investments in such nations, cutting some slack for national organizations to have a say as well. Political policies also affect cultural globalization, enabling people to communicate and move around the globe more freely. The premodern period saw technological advances that allowed trade and communication to flourish. Hire a verified expert to write you a 100% Plagiarism-Free paper. This technology is enabling the development of decentralized databases and storage that support the tracking of materials in the supply chain. Forbes reports that the move toward globalization has led to deindustrialization throughout the United States, which was once home to many more factories and auto plants. Thats why setting boundaries and not pushing limits is the most efficient moderate card on the poker table today. Pregnant women without access to traditional medical care can use their phonesto keep in touch with midwives. And in such a scenario, large and known firms enjoy the power of monopoly in the market as they have been into the market for a longer period of time and have a huge list of loyal customers. Make sure your essay is plagiarism-free or hire a writer to get a unique paper crafted to your needs. Another example of globalization is the response to the COVID-19 pandemic. What is globalization? Globalization provides a wealth of benefits, but it also comes with economic and cultural consequences that can be difficult to navigate. Our writers can help you with any type of essay. However, countries also enacted strict travel restrictions and many closed their borders to cut down on the free movement of people and spread of the virus. This, in turn, spurs innovation and, in some cases, the exchange of ideas and knowhow. Globalization presents challenges for multinational corporations in terms of capital investment and leadership. Transportation. Advances such as automation and 3D printing have reduced geographic constraints in the manufacturing industry. Globalization has long been used by the automotive industry, for instance, where different parts of a car may be manufactured in different countries. In continuation of the above-mentioned point where we discussed the competition in the market. Globalization is commonly thought of as a new phenomenon, but contact between diverse individuals is not new. Automation speeds up processes and supply chains, giving workforces more flexibility and improving output. Communication technology. Required fields are marked *. Globalization is more than just an economic phenomenon; it has had a deep impact on society and culture. This, however, is not the case. The solution is easy if you ask me is to form a new global council to monitor the impacts of globalization. India has seen an increase in the value of its computer service exports from $11 billion in 1995 to almost $110 billion in 2015. In addition, people coming from other nations to do business and work bring with them their own cultures, which influence and mix with other cultures. 3D printing enables digital designs to be sent anywhere and physically printed, making distributed, smaller-scale production near the point of consumption easier. The garment industry in Bangladesh makes clothes that are then shipped out across the world. On a side note, there is a portion of the society that fights a completely different war. What are the theories of Globalisation and their use, Your email address will not be published. It can also be difficult to find and retain managers with the requisite skills to add value to the company and work effectively within the local culture. The importance of this economic phenomenon cant be stressed enough; arguably the most significant contributor to increasing a countrys GDP (standard of living) is foreign direct investment that is, foreign companies who invest in your country. Create a free account and access your personalized content collection with our latest publications and analyses. Their target market is widened as they are no more confined to the borders and they are manufacturing products and service offerings to the customers all over the globe through online sales, digital marketing, and social media. Download Report, G-P Once Again Named a Market Leader. Hundreds of philosophers and social observers have taken sides for many years, either supporting or opposing the standard . A large reason why people from all around the world are able to gather in large cities in developed nations is due to Globalization. A large reason why people from all around the world are able to gather in large cities in developed nations is due to Globalization. Globalization is the most important trend of global development. Give me your paper requirements and I connect you to an academic expert. As borders between different countries become more permeable, it becomes much easier for citizens of one country to experience other ways of living and visiting different places. If no button appears, you cannot download or save the media. This is part of whats known as economies of scale where businesses can make huge profits by producing more items with less effort and time while still charging the same price for each item. And by embracing the aspect of globalization in the business, the firms are able to accomplish the same. One of the main aims and objectives of the firm is to attain a higher market share, higher sales, and higher profits. 2023 Globalization Partners. What are the Different Types of Business Environment? your personal assistant! The firms have the facility to tie up and amalgam with the international firms for the import and export of the goods and services. Review best practices and tools Configuration profiles make it easier to manage BYOD iPhones, but they're also associated with malware. Its easy for people to fear others whom they have never met. Today, we as a global society, benefit from Globalization not only in economic means, but in social, cultural, political, and environmental circumstances. We mean that the whole of the world is increasingly behaving as though it were a part of a single market, with interdependent production, consuming similar goods, and responding to the same impulses. Save my name, email, and website in this browser for the next time I comment. Below, we are sharing reasons as to why Globalization Is Important, to make you well-aware of its importance:if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[336,280],'curiousdesire_com-medrectangle-3','ezslot_7',117,'0','0'])};__ez_fad_position('div-gpt-ad-curiousdesire_com-medrectangle-3-0'); After a thorough research, we have come up with a list of 15 benefits of globalization. Consumers also have access to a wider variety of goods. The customers have access to the products and services offered by international brands. The outsourcing of labor also leaves a dearth of jobs in industrialized countries, where labor is more expensive. All Rights Reserved. Although many people consider globalization a twentieth century phenomenon, the process has been happening for millennia. With globalization, understanding other peoples culture becomes a lot easier and simpler so it certainly makes sense for people who have no interest in going abroad whatsoever to explore the opportunities that globalization offers them. These technological advances have been especially pronounced in transportation and telecommunications. Meanings and Perspectives of Globalization, This example was written and submitted by a fellow student. The importance of Globalization is a phenomenon that involves the free movement of humans among different regions of the world, exchange of information, and open market for businesses. Problems in Globalization: Jobs Loss and Transfer to Lower Cost Countries, Globalization in Context: Diminishing Religious Differences, The Effects that World War i and World War II had on Minority Groups in America. They have very similar effects: they raise output in countries, raise productivity, create more jobs, raise wages, and lower prices of products in the world economy. (MBA2013MBA) [A] to accelerate the I.T. Globalization is a word that has multiple meanings and perspectives. With the power of internet marketing and social media, the entire world is like a global village and customers having access to all the domestic and international brands in a seamless and eased out manner. The Economic and Employee Benefits of a Flexible Working Environment, Get started with Amazon CodeGuru with this tutorial, Ease multi-cloud governance challenges with 5 best practices, How to ensure iPhone configuration profiles are safe, How to remove a management profile from an iPhone, How to enable User Enrollment for iOS in Microsoft Intune, Use Cockpit for Linux remote server administration, Get familiar with who builds 5G infrastructure, Do Not Sell or Share My Personal Information. If you liked this article, we bet that you will love the Marketing91 Academy, which provides you free access to 10+ marketing courses and 100s of Case studies. The word globe as we know it refers to earth. Without international trade, we would lack the physical and capital requirements to grow large cities that are abundant with skyscrapers that employ thousands of people who deal with international relations etc. The global financial crisis, for example, hit many nations hard. May 13, 2019 By Hitesh Bhasin Filed Under: Business. The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization. Globalization has enhanced the entire world on the course of the past hundred years. For more details, review our .chakra .wef-12jlgmc{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;font-weight:700;}.chakra .wef-12jlgmc:hover,.chakra .wef-12jlgmc[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-12jlgmc:focus,.chakra .wef-12jlgmc[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);}privacy policy. It was founded in 1999, following the 1997 financial crisis, and has met every year since then. Globalization contributes largely to sustainable prosperity for all people. For instance, a Chinese herbal cosmetic brand can cater to Indian markets quite easily as Indians love to indulge in herbal products. Globalization also captures in its scope the economic and social changes that have come about as a result. In a globalized economy, countries specialize in the products and services they have a competitive advantage in. This makes goods and services more affordable for everyone who can then purchase them. Rapid advances in technology and telecommunications are responsible for much of this change. This not only benefits the foreign companies (in this case, American companies like Apple) but also helps the countries being invested in by increasing their exports, creating jobs, closing the technology gap, and overall, improving quality of life. Though countries may wish to help, too large an influx puts a strain on resources and social structures. Together, we aim to promote a more educated future by providing a greater knowledge around the studies of economics and political science. Give us your paper requirements, choose a writer and well deliver the highest-quality essay! Thus . For developing countries, especially, being able to skip the long technological development processes of industrialized countries brings rapid progress. As consumers realize they have a variety of options from all corners of the globe, they will choose to purchase the best and cheapest options, requiring companies to enhance quality and provide affordable prices if they wish to remain competitive. Organizations that build 5G data centers may need to upgrade their infrastructure. More recently, nationalist political movements have slowed immigration, closed borders and increased trade protectionism. One of the biggest benefits of Globalization is that there is a free movement of goods and services manufactured and offered by the firms on national and international levels. In general, globalization has been shown to increase the standard of living in developing countries, but some analysts warn that globalization can have a negative effect on local or emerging economies and individual workers.A Historical ViewGlobalization is not new. The result is more jobs in countries where jobs are needed, which can have a positive effect on the national economy and result in a higher standard of living. 87 students ordered this very topic and got Like that time the US-funded Hamid Karzai in Afghanistan back in 2005, he later ended up as a puppet following any strategy the US adopts. It ignores any environmental damage thought to be the result of globalization. If you have questions about licensing content on this page, please contact ngimagecollection@natgeo.com for more information and to obtain a license. When assessing the importance of Globalization, its good to look back to where it originated; Extent of the Silk Road and Spice trade routes blocked by the Ottoman Empire in 1453 spurred exploration and saw rise to international trade. By expanding into new countries, businesses reach markets that are hungry for their novel goods and eager to pay top dollar for them. This growing openness towards different cultures has helped us learn what makes us special and unique, while at the same time learning about the similarities we share with one another. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. With fewer restrictions on trade, globalization creates opportunities to expand. 15 Benefits of Globalization You Probably Didnt Know, 1. Global stock markets plummeted after the Sept. 11, 2001, terrorist attacks in the United States, but rebounded in subsequent years. For instance, the exchange of people and goods across borders can bring fresh ideas and help business. The Concept. The resulting spread of slavery demonstrates that globalization can hurt people just as easily as it can connect people.The rate of globalization has increased in recent years, a result of rapid advancements in communication and transportation. The nations involved account for 60% of the planet's population, 75% of global trade and 80% of world GDP. The members of G20 are Argentina, Australia, Brazil, Canada, China, France, Germany, Japan, India, Indonesia, Italy, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, the United Kingdom, the United States and the European Union. Combining efforts and resources allows for more creativity and innovation to solve problems that affect people all around the globe. Writing, to me, is the smoothest way to explain things to others and share knowledge with them. And the aspect of globalization opens the avenues of providing the best of customer service at a lower cost. Globalization enables countries to access less expensive natural resources and lower cost labor. Cut the circuit breaker power off, wait 10-15 seconds, then turn the circuit breaker back on. Cycles: it explains that there is no single point of origin in globalization but it is a long-term cyclical process wherein the current global age today is only a modication of the global age in the past. Following the European exploration of the New World, globalization occurred on a grand scale; the widespread transfer of plants, animals, foods, cultures, and ideas became known as the Columbian Exchange. Hence, it is very imperative for firms to understand the Importance of Globalization. Globalization affects businesses in a variety of ways: What are the advantages of globalization for businesses? The government authorities of various countries have been giving a lot of impetus to the Importance of Globalization realizing its high potential as it also increases the income levels of the nation as a whole. Since 2008, the G20 has held an annual summit that brings together heads of state to discuss important economic issues. It is very vital for the companies operating in todays dynamic and ever competitive market that the customer has to be given the topmost importance and priority in order to beat the competition and successfully survive in the market. In addition to economic trade, the Silk Road was a route for cultural trade among the civilizations along its network. September 28, 2021 by Zuha Salman Leave a Comment. In other words, when countries that were hitherto closed to trade and foreign investment open up their economies and go global, the result is an increasing interconnectedness and integration of the economies of the world. This means that companies can offer goods at a lower price to consumers. History shows that our ancestors travel from Africa to other places in search of food and security. I could go on about this forever! Setting up a business in a new country, especially a developing country, requires substantial upfront capital. This generally means what they can produce and provide most efficiently, with the least amount of resources, at a lower cost than competing nations. Most Kenyans dont have access to banks or bank accounts, but they can use their phones to send and receive funds, using a text-based app since most mobile phones in the country are not smartphones. As we know, it is the process through which the world stimulates into a unified network. A complete ban on globalization will paralyze the world, bringing nations apart and causing more wars. Blockchain. Arguably one of the top advantages of globalization has been the rapid spread of technology worldwide. When assessing the importance of Globalization, its good to look back to where it originated; Extent of the Silk Road and Spice trade routes blocked by the Ottoman Empire in 1453 spurred exploration and saw rise to international trade.
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