Globalization means the planet is becoming interconnected by trade and cultural exchange. This wonderful piece is written to offer a simple explanation of the merits and demerits of globalization. Management of any business means putting individuals together to achieve targeted objectives.
Globalization in a nutshell encompasses the total effort in closely connecting the world, creating in effect a small village’s interconnectedness on a global scale. When globalization is understood with reference to business, I simply mean the interconnectedness of foreign markets and the management of several firms in a global industrial community. This involves international investment, through which a company extends its company and invests in foreign countries.
People living abroad can easily reach bent their home countries during a matter of seconds. Telegram and postal letters are close to extinction. Everything has shifted to the web now. Electronic email, popularly referred to as email, is the norm today. It’s fast, reliable and cheap – the sole requirement is an online connection. This mode of communication has been backed by advancements in transportation. It won’t be wrong to believe that these two factors progressed hand in hand and have made our world a global village as a result.
The logistics companies that are operating worldwide have greatly benefited from these recent advancements in transportation and communication. The delivery time of these logistic companies has gone down drastically. Some courier service providers offer 24-hour delivery services if the package is to be delivered intra city. If a package is to be sent from Pakistan all the way to Canada, it takes 3 days in total.
The logistic firms ensure deliveries arrive not only on time but safe and sound. The courier service providers must take special care of perishable or fragile goods. Perishable items include cakes, snack packs, and other food items, while fragile items include gift items like perfume bottles, glass decoration pieces, and so forth. These packages must be carefully handled so as to avoid being broken or rendered otherwise defective during transportation. Send something special to your friends and family and allow them to skills special they’re.
BUSINESSES NOW RUN SEAMLESSLY WITH GLOBALIZATION
Recent research suggests that globalization has assisted in simplifying how to manage businesses across the world. This is often thanks to the advancement in technology, transport, communication, education, and regulations of trade that creates fair trade for all parties. This attracts more people to interact with international businesses and international trade. Managers worldwide face many challenges thanks to high competition within the industry; good decisions must therefore be made so as to satisfy and maintain their customers and attract more customers for his or her products. Companies enjoy economies of scale thanks to reduction of cost within the management.
POSITIVE IMPACTS OF GLOBALIZATION ON THE PLANET
Here are a few ways in which the world economy has benefitted from globalization:
More efficient markets
Efficient markets should be what every economy strives for. An efficient market is one where there’s equilibrium such that what the seller is offering to sell matches the exact specification of what the seller wants. If you improve the way you offer a product or service by doing things like outsourcing certain processes or buying from a foreign supplier that gives discounts, you’ll then afford to lower your asking price, which increases demand and affordability. When businesses don’t lower prices, they can disburse the surplus profit into such aspects as raising salaries, taking on more investments, or even creating more development activities to make extra income.
Any time that you have multiple producers competing for a hold of the economy, that’s a sure sign for consumers that there are numerous options available. When companies started venturing across foreign boundaries, what they often did was introduce a replacement standard into the worldwide marketplace. Consumers then had more options to choose from. With more competitors fighting over market share, each company must constantly look to enhance their goods or services or create more value for his or her customers. This usually comes in the form for better products and sometimes lower prices, which is almost always welcome to buyers.
If your economy depends heavily on the prosperity of another country, it’s hard to imagine either nation attacking the other. Globalization has helped improve world stability in a strange way. Although this might seem quite strange given the unrest in the world today, many conflicts that would have become ugly wars have all been averted if their country’s financial health didn’t depend upon the opposite.
More equality of income around the world
While many Americans claim that globalization has lowered their standard of living, the flip side is that many thousands of people around the world now have jobs, have started their own businesses, and can provide for their families. Living in the U.S., we take things like clean water, shelter and plentiful food for granted. Living large is so common compared to many nations such that once we cannot buy frivolous luxuries for ourselves, we claim we are poor. Globalization may have enlightened you not to purchase another expensive gadget, but people in third world nations are largely benefitting from it because it serves as a means of livelihood for many families.
Knowledge at our fingertips
Globalization offers the sharing of ideas, experiences and lifestyles of individuals and cultures. People can experience foods and other products not previously available in their countries. Globalization increases awareness of events in faraway parts of the world. For instance, the United Kingdom was quickly made conscious of the 2004 tsunami and sent help rapidly in response. Globalization may help to make people more conscious of global issues like deforestation and global warming, alerting them to the necessity of sustainable development.
Widening of Gap between the haves and have nots
The biggest demerit of globalization is the clear margin between the haves and have nots; where wealthy folks are literally beginning to be poor and richer are literally beginning to be poorer.
Loss of jobs
As a consequence of outsourcing, globalization might rob an entire state of its resources and jobs. This is because globalization allows jobs to be done regardless of the distance between the business, the worker, and the consumer.
Loss of Values and traditions
Although individuals belonging to cultures that are different and countries have a chance to figure along side each other , it brings a few loss in values and tradition.
Disruption of Natural Ecosystem
As species are literally bereft of their non-native ecosystems, there are literally increased risks of them spreading diseases and disrupting the other natural ecosystems and therefore the native species of theirs.
KEY PARAMETERS AFFECTING GLOBALIZATION
There are several key parameters that have affected the globalization process:
Larger freight vessels suggest that the expense of shipping goods between countries has drastically reduced. Economies of scale mean the value per item can reduce when operating on a larger scale. Transport improvements also mean that goods and other people can travel more quickly.
Freedom of trade
Organizations just like the World Trade Organization (WTO) promote trade between countries, which help to minimize barriers between countries.
Better Improved communication system
In many nations, the internet and mobile technology have improved communication between users across the world.
Availability of skilled labor
Countries like India have lower production costs (about a 3rd of costs in the UK) and high levels of skilled labor. Labor-intensive industries like textile can rely on lower labor costs and reduced legal constraints.
All in all, globalization tends to be a fairly beneficial education development, although there are still some obstacles to its implementation. The Harvard economist David Bloom once said that globalization has flourished in the world economy, as they all share a strong dedication to children’s education. He also emphasized that although some nations have gone on to use globalization to extend their educational prosperity, globalization has further widened the gap between the haves and have nots.
It had been suggested at another Harvard conference that education for pre-college students be more informing also, and people students should know before getting into that, for instance, “the state of India’s economy, could affect their ability to receive and maintain employment once graduated”. The entire idea is extremely intriguing, and globalization’s impact on education will likely be significant – as it has been for many other areas of society.