Globalization

Objective
The objective is to critically examine the impact of globalisation on the business

environment and how globalisation affected by political, economical, social-cultural and
technological environment.
Contents
Introduction
Impact of Globalisation
Effect of Globalisation
WTO
Case Studies
References
Introduction
Globalisation is a decisive configuration of social, economic, political and cultural
changes which frequently transforms key instructions in this modern world. Globalisation of
world makes closer between different parts of the world. Globalisation of industry makes
closer between the different parts of the members in the industry. Globalisation is a global
process, which refers to the shift toward a more integrated and independent world economy.
The globalisation has been around for past 500 years, on the other hand globalisation is
defined as interconnection and interdependence between states and between societies.
According to Thomson Larsson, The Real Story of Globalization (2001), stated that
globalisation:
“Is the process of world shrinkage, of distances getting shorter,
things moving closer. It pertains to the increasing ease with
which somebody on one side of the world can interact, to mutual benefit,
with somebody on the other side of the world.”
Thomas Lauren Friedman (an American journalist) examines the impact of the 'flattening' of
the globe", and argues that globalized trade, outsourcing, supply-chaining, and political
forces have changed the world permanently, for both better and worse. He also argues that
the pace of globalization is quickening and will continue to have a growing impact on
business organization and practice.

Impact of Globalisation
Globalisation is very important topic in discuss about the context of developed and
developing countries. Globalization has had extensive impact on the world of business. In a
business environment marked by globalisation, the world seems to shrink, and other
businesses halfway around the world can exert as great an impact on a business as one right
down the street. Internet access and e-commerce have brought small-scale coops in Third
World nations into the same arena as thriving businesses in the industrialized world, and
visions of low-income workers hand weaving rugs on primitive looms that compete with rug
dealers in major cities are not totally far-fetched.
Globalisation has affected workforce demographics, as well. Today's workforces are
characterized by greater diversity in terms of age, gender, ethnic and racial background, and a
variety of other demographic factors. In fact, management of diversity has become one of the
primary issues of 21st-century business.
Trends such as outsourcing and offshoring are a direct offshoot of globalisation and have
created a work environment in which cultural diversity can be problematic. But today most
developing countries want to profit from globalisation in the form of increased foreign trade,
foreign direct investment, foreign aid and industrial borrowing. On the other hand,
globalisation also raises problem in these countries. The problem is related to the consequent
fast structural changes in the economies. Then we can analyse globalisation on different
ways, with focus on the economic impact on developing countries. Globalisation has a
relatively new idea that the world has been embracing. The positive effects of globalisation
are numerous and extremely beneficial for everyone in all countries. It has been the most
successful prosperity and antipoverty movement in modern history.
(REF: http://www.etla.fi/files/918_FES_02_3_developing_countries.pdf)
Effects of Globalisation
Globalisation has various aspects which affects the world in different ways:
Political Political stability and risk, Government’s policy
Economical Gross Domestic Product (GDP), Employment
Social-Cultural Level of Education, Demographics, Consumers life
style changes
Technological Environment Innovative product and service, Improvement of
Customer Relationship Management (CRM)
POLITICAL
Globalisation is mainly used for the creation of a world government which regulates
the relationships among governments and guarantees the rights arising from social and
economic globalization. Politically, the United States has enjoyed a position of power among
the world powers, because of its strong and wealthy economy. With the influence of
globalisation and with the help of The United States’ own economy, the People's Republic of
China has experienced some tremendous growth within the past few years. If China continues
to grow at this rate then within next few years, there will be major reallocation of power
among the world leaders. China will come stronger in their economy with enough wealth,
industry, and technology to rival the United States for the position of leading world power.
30% - http://redblueint.com/Content/Knowledge_Center/Knowledge_of_Industry.html
52% - http://www.absoluteastronomy.com/topics/Globalization

Globalization

Uploaded by

Copyright:

Available Formats

Globalization

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Globalization

Uploaded by

Copyright:

Available Formats

Objective

The objective is to critically examine the impact of globalisation on the business

Globalisation is a decisive configuration of social, economic, political and cultural

defined as interconnection and interdependence between states and between societies.

“Is the process of world shrinkage, of distances getting shorter,

things moving closer. It pertains to the increasing ease with

with somebody on the other side of the world.”

business organization and practice.

dealers in major cities are not totally far-fetched.

Globalisation has affected workforce demographics, as well. Today's workforces are

primary issues of 21st-century business.

successful prosperity and antipoverty movement in modern history.

Political Political stability and risk, Government’s policy

Economical Gross Domestic Product (GDP), Employment

Social-Cultural Level of Education, Demographics, Consumers life

Technological Environment Innovative product and service, Improvement of

Customer Relationship Management (CRM)

You might also like