Concept of Globalization
The report helps in the analysis of the different kinds of globalization effects or impacts on different countries in an effective or ineffective manner. There are different kinds of positive or negative consequenceThe report has helped in analysis of the effects or the consequences of the globalization in the entire business economy of the developed countries. s of globalization in various countries with proper implementation of different examples as well.
Furthermore, the different examples of various countries are required to be provided in order to understand the negative or positive consequences of globalization in those respective countries. The main aim and purpose of the report is to analyse the main four consequences of globalization in the business economy in developed countries.
Globalization is defined as the process of process of integration along with interaction between the different companies, individuals and governments worldwide. Furthermore, the globalization has grown to a large extent due to the different advances in the communication and transportation technology (Carmody 2017). This is the economic process in the integration and interaction which is associated with the different cultural and social aspects.
According to Stromquistand Monkman(2014), globalization results from removal of the different barriers between the different national economies as this will help in encouraging flow of the different goods and services, capital along with labour. Furthermore, Nica, Manoleand Potcovaru(2016) has commented that the different policy makers have decided three major aims in order to achieve the globalization which includes the stimulating competition in domestic market and this will help in stimulating farmers, local industrialists as to minimize the cost of production and this will help them in becoming more competitive in the international market.
Najam, Runnalls and Halle(2016) has hypothesised that globalization helps in boosting foreign investment in the economy along with free import of the foreign kind of technology will help in supporting gross and industrial product along with the rate of the growth. Furthermore, Martínez(2017) has opined that globalization helps in restoring trade along with balance of the payments problems by reducing the different costs and this helps in allowing free access to import of the different raw materials and capital goods.
For instance-Politically, globalization has created positive impact on Australia as the government of Australia has created and aided different programs which mainly focuses on economic growth and this helped in enhancing the service delivery in different countries in which this is required. Furthermore, globalization has created favourable impact on different sectors in India as per the recent surveys, this has been analysed that the industrial sector in India has significantly grown at 6.8% rate and the country ranks as the best markets in Asia-pacific region (Der-Karabetian 2017).
There are different kinds of globalization which are being described as follows:
- Economic typeis wherein the countries trade with many others and there are only few kinds of trade barriers which are globalized economically. Furthermore, the economic structure of globalization means that there is proper two-way structure for the resources and technologies (Tripathi and Rathore 2016).
For example- In USA, which sell the technologies to the different countries which lack these and the different natural resources from the different developing countries are being sold to the different developed countries which is required by them.
- Social typeis in which this is the measure through which the different information is being passed between the different individuals in the own country and between the different other countries which is also inclusive of internet and social media networks as well (Hirst,Thompsonand Bromley 2015).
- Political typeis wherein there is political corporation between the different countries(Carmody 2017).There is proper co-operation between the different countries and this has been seen that there are different kinds of global companies such as WTO and United Nations such as the EU have helped the increase the degree of political globalization (Reader 2017).
Globalization has introduced different kinds of positive and negative impacts on the management of the developed countries. There are different factors which includes education, competition, investments along with organizational structure and culture.
Types of Globalization
Global Market- There are different kinds of successful emerging kinds of markets in different developed countries which is the result of the privatization of the different industries which are state owned in nature. The different multinational corporations are the result of the globalization and these MNCs occupy central role within the entire process of globalization which is being evidenced through global foreign direct investment inflows (Shahbaz et al. 2015).
Furthermore, it can be seen that there is increased competition in the market, the corporations continue to enlarge their market and this helps them in enjoying large economies of scale as well (Claessensand Van Horen 2015). The main reason behind the same is that globalization helps the economies to compete fairly at different levels and this attracts different investors as well (Pinheiro, Chwieroth and Hicks 2017).
For instance- In developed countries like USA and UK, there are different corporations which helps them in enlarging the market in an effective market and this will attract different kinds of investors in the entire market as well. McDonald’s is one such examples in which this has been seen that globalization is successful in different countries in which they have tried to expand their market and this was a big step for McDonald’s as the strategic alliance was effective in nature.
Competition- There is huge rate of competition in the market which is due to globalization and the positive results are visible in nature and the global level of competition leads to production of the different products of the high quality. Furthermore, enhanced quality of the different goods and services are based on approaches of production of the demands of the customers along with customer services.
For example- This can be seen that in USA and UK, there is huge competition in the market and this was seen that McDonald’s has tried to expand their business in different developed countries which will be essential for them to be successful with the help of the different strategic alliances in an effective manner.
Furthermore, due to globalization this can be noticed that it has involved greater trading of the commodities across the entire globe. Furthermore, due to the globalization, the different restrictions which are being imposed by the various countries on allowing the imports of the other countries have been reduced as well in an effective manner. Lastly, there is huge cultural effect of globalization has led to rise of the uniform kind of culture which is homogenization and this has led to uniformity in the different tasks which are being performed effectively.
There are negative consequences of the globalization in the business management in different developed countries. There are different kinds of negative impacts which has hugely affected the organizational capability drastically. The most common drawback of globalization is that it is widening the overall gap between the poor and rich wherein this has been seen that the rich people are becoming richer and poor are becoming poorer in nature.
Fluctuation in the prices- The globalization has led to the increased competition in the market which has led to fluctuation in the pricing. For example- This has been noticed that in different developed countries, like USA which have been forced in order to reduce the prices of the different products as there are different countries such as China is selling different kinds of similar products at a lower price.
Positive Effects or Consequences of Globalization
As per the example, this can be analysed that the cost of production in China is lower than in USA and this is the main result that the developed countries USA withstand competition and have more customers and they are being forced in order to lower the prices. This has caused huge issues in lowering the social welfare of the country as well (Gaddisand Pieters 2017).
Additionally, this has been seen that the old welfare state is giving more way to more minimalist kind of state which performs certain kind of core functions such as the maintenance of the law along with providing security to the citizens.
Job Insecurity- On the other hand, there are job insecurity is caused due to globalization and this has been seen and noticed that global economy jobs are temporary and are unsecured. This kind of impact is felt in different kinds of developed nations such as USA as they have the power to outsource cheaper manufacturing and white-collar jobs (Flew 2017).
For instance- the manufacturing costs and wages are lower in India as well as in China which is making the countries UK and USA to outsource the different kinds of labour which is cheaper in nature. The major impact on the developed nations is that the people in the different developed countries are having fewer jobs which is ineffective in nature.
Conclusion
Therefore, it can be concluded that the globalization has created huge negative as well as positive impacts on the business management culture in developed countries such as USA and UK. Furthermore, this has been seen and analysed that there are different negative impacts on emerging countries such as USA wherein the individuals are not getting any proper jobs and they are becoming jobless as well.
Furthermore, this has been noticed that the globalization has improved the overall standard of living and this has created a significant impact of globalization as well.
For instance- This has been seen that globalization has brought in about different kinds of opportunities for trade and these are the different countries which have tried to open new avenues for the foreign investments which will help in creating large revenues as well.
Therefore, this can be recommended that the negative impacts of the globalization on the entire business management economy is required to be reduced in an effective manner. There are three practical solutions which can be provided in order to mitigate the different kinds of risks and challenges effectively. Firstly, the microeconomic policies are essential in nature by providing better kind of education, planning of the career and less rigid in nature.
Furthermore, education is the essential kind of catalytic effect on the different developed countries wherein this will help both men and women to be equal in the different tasks which will be performed by them and this will help in unlocking the different growth opportunities as well.
Additionally, the investment in the technology can create new opportunities for the sustainable kind of growth and new kind of technology can help in reducing the different kinds of reduction in the emissions of the carbon and this will reduce the health hazards as well. The different kinds of globalization is required to be analysed in an effective manner which will create huge impact on the business economy in developed countries.
References
Carmody, P., 2017. The liberalization of underdevelopment or the criminalization of the state? Contrasting explanations of Africa’s politico-economic crisis under globalization. In Globalization, the Third World State and Poverty-Alleviation in the Twenty-first Century (pp. 47-62). Routledge.
Claessens, S. and Van Horen, N., 2015. The impact of the global financial crisis on banking globalization. IMF Economic Review, 63(4), pp.868-918.
Der-Karabetian, A., 2018. Relationship of Sustainable Behavior, World-Mindedness, National and Global Identities, Perceived Environmental Risk and Globalization Impact Among College Students in the United States.
Flew, T., 2018. Understanding global media. Palgrave Macmillan.
Gaddis, I. and Pieters, J., 2017. The Gendered Labor Market Impacts of Trade Liberalization Evidence from Brazil. Journal of Human Resources, 52(2), pp.457-490.
Hirst, P., Thompson, G. and Bromley, S., 2015. Globalization in question. John Wiley & Sons.
Martínez, J., 2017. Globalization and its impact on migration in agricultural communities in mexico.
Najam, A., Runnalls, D. and Halle, M., 2016. Environment and Globalization: Five Propositions (2010). The Globalization and Environment Reader, p.94.
Nica, E., Manole, C. and Potcovaru, A.M., 2016. Competition in the worldwide workplace: economic globalization and labor rights. Journal of Self-Governance and Management Economics, 4(3), p.73.
Pinheiro, D., Chwieroth, J.M. and Hicks, A., 2015. Do international non-governmental organizations inhibit globalization? The case of capital account liberalization in developing countries. European Journal of International Relations, 21(1), pp.146-170.
Reader, J., 2017. Reconstructing practical theology: The impact of globalization. Routledge.
Shahbaz, M., Mallick, H., Mahalik, M.K. and Loganathan, N., 2015. Does globalization impede environmental quality in India?. Ecological Indicators, 52, pp.379-393.
Stromquist, N.P. and Monkman, K. eds., 2014. Globalization and education: Integration and contestation across cultures. R&L Education.
Tripathi, A. and Rathore, R., 2016. Impact of Liberalization and Globalization on Stock Exchange Markets A Study of Interdependence and Co-Movement of Selected Asian, European and American Market. JIMS8M: The Journal of Indian Management & Strategy, 21(3), pp.60-64.
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