The Introduction Of Globalization Economics Essay

The Introduction Of globalisation Economics EssayTerm Globalization is difficult to explain because it may come with a split up of meaning save according to Griffin Pustay Globalization quite a little be defined as the inexor fitting integration of market, nation-states and technologies in a way that is modify individuals, corporations and nation-states to reach out the realness farther, double-quick, deeper and cheaper than ever before (Griffin Pustay, 2012, p.32)In general, Globalization certainly had m all changes in the world we live in thus, it talks more about the trend towards countries joining together economically through society, politics and education and they view themselves not only through their national identify but also as part of the world as a whole. It is to be said that, Globalization has brought all nations people closer through a parking lot medium like the economy or internet.In the bigger picture, Globalization refers to the growing economic interd ependencies among different countries and thus it reflects the increment in business of goods and service and slap-up flows crossways the countries border. It provides advantage to companies to function across the globe in different countries and environment.Technological Advancement TransportationOne silent revolution which has brought changes in international business is due to transportation applied science. Due to promotion in technology, its foreseeable, the amount of reduction in transportation cost in finishing two decades and has greatly impacted in declining converse cost as well. Across the globe various businesses and government have adopted technology for faster communication and effective management for overseas business which stimulates fast economic, production and market globalization, resulting in rapid improvement over transportation and communication make trading easier and more over cheap to reach new market eitherwhere across the globe.The heavy reducti on in transportation cost has do companies to move its resources across globally at much lesser rate. However, its easy to predict and to say that globalization isnt short of its supporters such as global Agreement on Trade and Tariff (GATT) who is helping in cutting down more and more tariff to bring up more opportunities to maturation in overseas trade activities and investment and World Trade Organization (WTO) who is the only global international organization dealing with the rules of trade between the nations. In short, technological transportation changes in past decades has brought not only different countries together but also has given them more opportunities in doing international business.Drivers of GlobalizationThe obvious benefits of globalization be mostly accompanied by Multi-national Companies (MNC). Globalization has led to an unprecedentedexpansion of multinational companies. Thus, they have become very gravid and powerful. For instance, some companies are wo rth more than the entire Gross Domestic Product (GDP) of entire country. Mainly Multi-national companies have massive good or up restrain effect on country whereby they do business. (Tutor2u, 2012)Pros and Cons of Globalization on Asia-Pacific RegionIn todays time Globalization is widely used to severalise worldwide phenomena. Its gives positive meanings to those who can advocate greater economic integration across the national borders Resulted in rapidly growing international flows of goods, capital and investments, while it has given threats to. The following discussion is about pro and cons of globalization that has brought into Asia-Pacific region.Pros of GlobalizationEconomic Growth Economic globalization is the process of integration of the worlds economy. It refers to the reduction and removal of barriers such as trade restrictions, quotas, tariffs and restrictions between national borders in order to import goods, services and capital from others nations. Hence, it results to reap more opportunities for a country to promote trades and brings more investments which leads to more economic growth and helps in creating more job opportunities for locals.Employment Opportunities Globalization led towards developing countries world-wide, as a lot of international companies are locating up their factories in developing countries like china, India, Vietnam, Malaysia and Thailand. Thus, it helps in creating more job opportunities for the locals especially for countries like India and China whereby in that location population across billions, resulting in providing not only skilled workers but also a cheap source of labor which captivates certain industries to set up their factories and plants as it also helps in improving their standard of living.More Opportunities for Consumers Developing countries symbol of an open economy, which emphasizes more on international trade and distant investments helps in expanding choices for consumers As they can have a gr eater choice of products to purchase than ever before and helps in bring more funds and technologies from abroad. Thus, with attach in choices and technologies helps in raising their standard of living.Example Numbers of companies in America has actually travelled to Japan to take a expression as how Toyota company run its factories. Not only MNCs but also government agencies from different countries have showed some interest in knowing their methods and practices. Whereby, at the first place, Americans were the maven who introduced continuous improvement concept as in todays time, Toyota is practicing that concept. Its just not the only example, as there are many other examples in which integrity country generates idea and progressively it spreads to other part of globe. This is only possible with the concept of globalization as without it it would have never been possible.Cons of GlobalizationReduction in Economic Growth Where Globalization has given a lot of opportunities acr oss the globe in resembling way it has created some negative impacts over job ratio and economic growth to such countries where ratio of importing is more than exporting. Its important for countries across the globe to maintain balance of trade, whereby when import by one country is equal to export by the other country in monetary cost if the payments is in excess (Negative Balance) is called Trade Deficits or Trade Surplus where theres a positive balance. When any industry gets failed to survive in any country under intense international competition, then that country clamss relying more on imports which led to imbalance of trade, resulting in net exports will decrease as well as GDP and economic growth. (Libraryofeconomicsandliberty, 2012)Adverse Effect on Environment Although globalization has only become a widely recognized phenomena in the last few decades but its effect on environment is apparent. Many viewed global actions as threating not only to environment but also to nicety and traditions too. Example Proposition is fairly simple, the reason why economic growth is at upstretched is due to natural resources such as oil, timber, metal, gold etc. except its feasible these natural resources are finite amount of available for human consumption. More importantly, these resources are heavenly used as if n for grand economic expansion of large developing countries such as India and china. All these facts together makes us realize that sooner or later it would result to adulteration of ecological system and possibly become the single most critical threat for continuing of current globalization. (Bernhardsdottir E., 2010)In Relating, High tech industries computers and electronics have grow globally, which is contributing to heavy environmental cost due to manufacturing of semiconductors which contains several chemicals that harms human health.Widening Income Gap The increase in trade and capital flows influenced by globalization led to raise demand of workers and push up their hire for certain skilled labors in various industries which do gives competitive advantage but on other hand, demand of unskilled workers declines, so their wages. This widens the income gap in the country.Countries like India, China, Russia and Eastern Europe have dense workforce available, hence forcing down the wages everywhere. In todays time, companies tend to invest and locating their plant where they can acquire lowest paid workers. At the same time, due to rise in technology in each and every sector demand of skilled workers are increasing as well and on other hand, technology is making a lot of workers jobless.The result is widening income gap is stretching across the world between highly skilled workers and unskilled workers, top one rising rapidly, the middle one rising slower and bottom one ceased or even declining. (Channelnewsasia, 2012)Pros and Cons of Globalization Over Business OrganizationTechnology advancement had a great impact over the workplace in past few decades.Pros of Globalization over Business OrganizationExpanded Marketing If we look from business perspective, one positive effect of globalization over companies is that of expanded markets which contributes that if a business was selling its product and service locally only, can start selling its product and services overseas as a result expansion in market to take advantage of opportunity and gain a competitive advantage. Globalization has transformed the business environment into a more competitive one and has given a lot of new opportunities for expansion of organization.E-commerce generally consisting of distributing, buying, selling, marketing and servicing of product and service over electronic communication internet has given a lot of boost to companies to expand their product or service across the worldwide.Example In todays time, several companies doing e-commerce through the use of distribution channel like e-bay, amazon etc. are expanding u p their market across the world in a faster way. One reason why marketers prefer e-commerce is due to few involvement of intermediaries in distribution channel, the advantage of this is that fewer intermediaries means fewer middleman involved which eventually allows smooth transaction between manufactures and consumers.Another example, through which companies are able to capture their market is through the use of social networks such as Facebook, Twitter, Myspace and the list goes on. Today, companies are taking advantage of social media sites by creating their profile and bill of fare regular updated advertisement to capture global market.Gains to Owners Globalization permits free movement of new communication technologies such as Use of internet, E-mail, Mobile phones and satellite beam offer to people and providing them more opportunity to communicate in groups and gets access to training from both close and distant source quickly from across the world. Having information on fingertips, Multinational companies are tend to respond faster to the changing factor of wages and enables them to shift their units from high-wage country to low-wage country, which ultimately bring benefit to the owner and gain a competitive advantage over others. (Internationaleconomics, 2012)Managing Competition Its feasible to say that international business faces more competition than other businesses, as a company on other part of the world may be producing same level of product, information technology provides company speed of communication which enables them to stay ahead of their competitors. (Ehow, 2012)Example Software like Skype, Voice over instant protocol allows workers to perform their job from any location via these software which can be access with internet connection. Hence, it removes the barrier and enables companies to communicate anywhere in the world and moreover in todays time its one of the cheapest medium or we can its cost efficient.Cons of Globalization over Business OrganizationDependency Todays society are more groundbreaking and relies more on technology, this means more companies are depending on technology like computers and other form of technology for accomplishing their day-to-day activity. So anyhow if any of their machines breaks or computer gets crashes, their work halts for the time until the problem is solved. Hence, this kind of dependency put people at distinct disadvantage.