business globalization

What is business globalization?

　　Business globalisation was initiated in the early centuries as a way of integrating the world ofeconomists, business and political activities which were focussed on cost associated protection. This resulted from the idea of declining international economic integration. This gave birth to several international institutions that were supposed to oversee international trade by removing the barriers to trade. It is thus a process that aimed to be beneficial to all people within a country and in the whole world. However, globalisation is nowadays involving many other activities which are multivariate in approach. It involves economics, social and political dimensions. Globalisation is therefore having various aspects which are affecting the world in different ways. Such aspects include looking for the markets for the products and access to a range of foreign products which are required for their productions. Since the inauguration of globalisation, the industrialist system has recorded an unbelievable number of achievements. The industrial revolution has fetched a new standard of prosperity, shape and comfort to the people of the world.

Factors that have accelerated production and market globalisation

　　There are so many factors which are thought to affect globalisation both in the market and production process. There has been an advancement made by large segments of the world population in this age of globalization. There is good evidence that globalization has led to increased production and also at the same time increased the markets for these goods and services. Let us see some of the factors which are said to have accelerated the production and market globalization. (Kawai, 2002, pp 167-204).

New technologies

　　The modern technologies are one of the factors which are thought to have accelerated production and the global market. In the last two decades of the 20th century, the world has experienced a fundamental change in the perception of the world and one of the reaching transformations has been the economic structural changes on the global scale. The backbone of all these changes is seen to lie on the technological information revolution. The innovation of the new technologies gas made many countries to grow and a good example in this case is e-marketing. E-marketing promotes more personal contact between the seller and the buyer. E-marketing is a part of e-commerce which involves electronic medium which his sued to achieve marketing objectives. It is set of a strategic level which uses traditional marketing and businesses strategies. As was highlighted earlier, many companies have responded to the new marketing styles. An efficient e-marketing model does not only involve communication with the buyers but it takes into consideration other aspects like the production, distribution, and transformation of the organization and its cooperation to an e-business organization in all aspects. In the early days of its application, many organizations came up with theories of disintermediation as the new drives to the new economy and which were later adopted in the production and distribution of goods and services. It is with e-marketing that most of the producers have been in a position to produce most of their goods and sale to the potential consumers effectively. As a result, you will find that since the marketing process has been made easy, then the producers of these goods will be in a position to produce more goods since the new technology ensures that proper marketing strategies has been developed hence leading to the increased growth of these countries. (Kawai, 2002,pp 167-204).

　　Another good example in this case is the use of internet in most of the activities which are done by many of the companies. The internet can be used to advertise the various goods and services which are produced by these companies. As a result, you will find that most of the consumers will be in a position to know the new products which have been introduced in the market hence leading to increased production. As a result, you will find that in the global market, most of the consumers will be in a position to access these products hence leading to the increased production of these goods and services. Consumers are also in a position to shop online. This is one of the modern technologies associated with globalisation so you find that with online shopping, then consumers will be in a position to access these goods without actually travelling to the areas which these goods have been produced. As a result, you will find that with the introduction of the new technologies, the production of these goods have been increased in the global market hence leading to a diversified growth in these countries. (Kawai, 2002, pp 167-204).

Cultural homogeneity

　　Cultural homogenization can be defined as the domination of a particular culture over the other cultures. Culture in this case means shared believes, values, attitudes, languages among others. This is the situation whereby you find that there is only one culture which is used by so many people. So due to globalization, it has led most of the economies in a village market whereby there is free trade of goods and services and you also find that there is no restrictions on this trade. So, many argue that Cultural homogenization is seen to have positive impacts in the global market. Global market in industries says tourism and the hospitable industries means that we will have the same culture in this industry. So, this is important in the sense that when we have culture homogeneity in the global market, it means that trade in this case will be made easy. A good example is in the common language. If we have a common language which is been spoken in the provision of these services, then you will find that there will be no language barriers when delivering these services. One of the major barriers to trade is language barrier. So, if a common language is established to be used by all countries when providing these services, then it will mean that people will be in a position to communicate with each other effectively. All people from every region of the country will be in a position to get these services effectively hence leading to a greater importance to those people who trade in this businesses. You will also find that the economic growth of these countries who deal with the tourism industries will be in a position to grow. So, with a cultural homogeneity, then you find that theglobalisation process will definitely increase since when we have a common culture in terms of a common language, then it means that there will be no language barriers and countries will be in a position to produce and sale their goods at the global market without any problems. So, cultural homogeneity is one of the factors which are thought to have accelerated the production and market in the global process. (Boswell, and Dimitris, 1997, pp 288-308).
 

Consumerism

　　Consumerism in economic terms means the policies that place more emphasis on the consumption and also the free choice of consumers in the purchase of good and services. With globalization, it means that there is a homogenous consumption of goods and services. It is a world where everyone can eat the same food just like the other, people can dress the same and also the entertainments are usually the same. This is because it is a village market whereby all economies of the countries meet to exchange their goods and their services. So, in this case, consumerism is one of the factors which are thought to have accelerated the production and the market of goods and services in the global market. This is because there is a ready market for these products. Many consumers are willing and able to purchase these products since with global market; you find that there is the production of different qualities of products hence the consumers in this case are free to choose the kind of product they want. So, in this case, due to the free export of these good and services, the consumers from every part of the world are in a position to access the goods and services of their choice hence leading to a ready market for the producers of these goods and services. As a result, you find that the producers can increase their production since they are sure that there is a ready market for these goods. So, with consumerism, it’s argued that its one of the factors which are said to have accelerated the rate of globalisation in the marketing and the production process. (Boswell, and Dimitris, 1997, pp 288-308).
 

Enhanced economic interdependence

　　Economic interdependence can be taken to mean the economic corporation of many countries. Many countries are thought to have increased their economic interdependence. These countries are seen to come together for the trade purposes. A good example in this case can be seen in the formation of NAFTA, WTO, and UNACTAD among other bodies which are said to have increased the production and the market globalisation. A good example in this case is NAFTA (North American free Trade association). It is with the formation of NAFTA the member countries have been in a position to expand in growth. This is because it is a free trade association between the member countries whereby there are reduced tariffs to the members of the association. So, with this you find that the infant industries in these countries can be protected hence leading to their increased production. So, you will find that these countries will be in a position to produce more goods and services and sale them globally hence leading to the growth of the economy. So, it can be argued that the increased economic interdependence has led to the increased production of goods and services and also the globalisation market. This is because these countries have made trade agreements so that they can promote trade. (Boswell, and Dimitris, 1997, pp 288-308).#p#分页标题#e#

　　It is also with the increased economic integration that economies have been in a position to improve on infrastructure. You find that the communication process in this case has been made easy since the communication travel for these goods are made easy. So, you find that with good infrastructure, the production of these goods and services have increased since they can be transported quickly and marketed so quickly. The integrated labour force is also another area which has led to the increased production of goods. This is because the integrated labour ensures that people from other countries can work in a given country as long as they have the skills. So, in this case you find that there is employment of more expertise in the production of goods and services hence leading to the increased production and the globalisation market. (Boswell, and Dimitris, 1997, pp 288-308).
 

Impacts of globalization

　　Globalisation has so many impacts both to the individuals and the communities at large. The empirical evidence on the impacts of globalisation is seen in many areas and some of these areas include the following. (Boswell, and Dimitris, 1997.pp 288-308).]
 

Poverty eradication

　　It is noted that poverty is a global “bad” hence calls for a concerted collective action by all countries to help in eradicating this poverty levels especially in the poor countries. In a globalized world, societies from anywhere are said to benefit from poverty eradication and this is because of the negative externalities which are thought to be associated with certain things like conflicts in the sharing of the economies resources, the spread of communicable diseases which are thought to interfere with the development of a country and lastly the harm which is given to the environment. Poverty reduction has remained the central challenge to majority of the countries especially the developing countries. It is with the help of globalization that majority of the countries have been in a position to reduce their poverty levels. There is great evidence that with the introduction of globalisation, it has been in a position to eradicate poverty levels and eventually accelerating growth in most of the countries. It is an important catalytic role in both accelerating growth and also at the same time reducing poverty levels. A good example in this case can be explained by analysing the developing countries. You find that the developing countries have been in a position to grow out of globalisation. This is because with globalisation, it means that there is a common market for goods and services and at the same time there are no restrictions to trade. It means that the developing countries that are not in a position to compete with the already developed countries can now compete well with them since you find that with globalization, it means free trade that is a trade which is free from trade restriction. Most of the developing countries found it hard to trade globally due to the introduction of tariffs which were usually high for the infant industries to meet. They had limited exports since the tariffs which were imposed when exporting these goods and services were high hence leading to the increased costs of production. It is out of the increased costs of production that the infant industries from the developing countries could not realize their competitive advantage hence leading to increased poverty levels to these countries. As a result, the countries which are still undergoing development can now benefit from globalization since it means that they are in a position to export there products freely and hence can compete effectively with the other developed countries. As a result, it means that globalisation has done so much in eradicating poverty levels especially in the developing countries. (Boswell, and Dimitris, 1997, pp 288-308).
 

Impact on inequality

　　Global inequality in this case is seen as more complex issue. The trades in the global inequality is said to depend more on the changes in inequality that is between and also within countries. It is well known that global inequality has reduced and this is out of the inclusion of the developing countries in the globalisation process. The issue of Global inequality is seen in two dimensions and this is inequality between individuals and also inequality between countries. A good example in this case can be explained by the developing countries. Inequality is seen to reduce in the developing countries since you find that they are not left behind from the benefits of globalization. There is equal participation of all countries in the global market and you find that there are no restrictions to countries to participate in this market. It is with globalisation that the poverty gap between the rich and the poor countries has reduced. This is because of the equal participation of all countries in to the benefits that are associated with globalization. So, the issue of integrating economies together is seen to have many advantages to majority of the countries and hence it is a good initiative since it involves a common market for the sale of goods and services to all economies of the world and no country has lagged behind from the benefits of globalization. (Fischer, 2003, pp 1-30).

　　On the centrally, I as an individual have experienced income inequality increasing in many of the major industries and this has been experienced over the last five years. The degree of this inequality has some variations in many of the countries say in U.S.A. and Britain where there is an increased inequality respectively and also seen to be lower in the continental economies. You find that the major industries are allocated with majority of the resources while the infant industries are left to suffer. As a result, you will find that these companies will not be in a position to compete with the advanced companies and this might lead to their closure. (Fischer, 2003, pp 1-30).

　　Another area of inequality is seen in the individuals. Individuals in the sense that you find that in the sharing of income, some people tent to benefit at the expense of the others. The rich in this case will continue to be rich while the poor at the same time will continue to be poor. This is because it’s only the rich people who will be in a position to access these goods and services while the poor are actually left to suffer. So with this you will find that globalisation will at the same time lead to increase inequalities between countries and the individuals as well. (Fischer, 2003, pp 1-30).

　　The internationalization of the market has a direct impact in most important sectors which are mostly dominated by the poor. Mostly, the poor are kept in those sectors which are widely associated with the production but not in the distribution. The poor producers do not benefit from globalisation as the middle class men always makes the best of the un informed poor men in the globalise world. Thus the globalise trade in agricultural and livestock commodities from the poor are lowly paid for. This makes such sectors to be lagging behind in terms of industrialization. However, it is in the agricultural markets that rich countries have been stubborn in putting favourable policies for the free trading conditions. (Fischer, 2003, pp 1-30).

Conclusion

　　Globalization in business is one of the areas which have led to most economies to improve. A good can be explained by analyzing the developing countries. It is out of globalization that most of the developing countries that could not compete effectively with the developed countries are seen to benefit a lot from the issue of globalization. Globalisation is seen to have so many advantages as when compared to the disadvantages with globalisation. It is seen to have increased production hence leading to the economic growth of countries especially in the developing countries.
 

Reference

Fischer, S 2003, “Globalization and its challenges.” American Economic Review, pp 1-30.

Kawai, M 2002, “Global and National Approaches to the International Financial Architecture”, International economy, pp 167-204.

Wong, J and Sarah, C 2003, “China-Asian free trade agreement. Shaping the future of economic relations”. Asian Survey, pp 507-526.

Boswell, T and Dimitris, S 1997, Globalization and international labour organizing, work and occupations, pp 288-308.