Summarise the main effects of globalization and discuss to what extent they are beneficial to your subject area.

Summarise the main effects of globalisation and discuss to what extent they are beneficial to Business Management.



It is commonly accepted that globalisation is a trend, because of the well established and accepted aims, norms, borderlines and frontiers are being emerged. Furthermore, it is a process for unification of distinct national economic units toward global ones. Each country and the people within that country are continually looking for new ways in which to progress and to succeed. Taking into account that, globalisation has several aspects which exercise an influence to the world moreover this reaction has two different consequences - positive and negative effects. First of all, it unites political, economical and cultural processes across various countries with regards to the future to facilitate their thriving. For example, e-commerce, capital flows and foreign investments, free trade, participating in international market, and reconstruction of political, environmental and social perceptions. On the other hand, globalisation generates not so salutary effects, as a case in point unfairly treatment of the small and not so developed businesses by the global market, sometimes increased competition may cause intolerable costs on firms, regions and communities. In addition because of the overdependence of some countries, local industries are being taken by foreign multinationals. Some other negative effect of globalisation is that alien cultures are affecting local cultures through TV and the Internet thereby enemy nations can spread propaganda through the media. This essay is going to assess to what extent some of globalisational effects are beneficial to Business Management and especially how political, economic and technologic factors are favorable for the international industry.

Taking a longer and broader historical perspective during the last decades, globalization economic effects definitely have been beneficially influencing International Business during the years. Varieties of implicated factors are significant to its success. One of the advantages is the falling of cross-borders during the 1990s which support distribution of products all over the world and each retail has became “insatiable” in searching for new and unconquered global markets. Let’s take for instance the international development of Marks& Spencer: after 80 years of its existence first store opened outside the UK into Canada in 1972 and France and Belgium in 1975. In 1980s M&S turned into well developed brand over the world in comparison with its competitors Tesko, Sainsbury’s and Aldi. (Howard, Jeremy, Grazia 1993)

We will discover another advantage of Globalisation when looking at political cooperation between the nations and the integration of their policies, laws and rules. World organizations as NATO, WTO and World Bank which are dealing with transnational problem-solving, are created as a result of political globalization. Ougaard commented that these associations unify interests, made decisions, allocated values and policies conducted through multinational political processes. (Baylis, Smith 2005)
If we give an exemplar as WTO (World trade organization) and scrutinize it, we are going to come across the connection among policy, nations and global dependence. In 1995 there was a conflict between the European Union and United States of America. The main reason that the conflict arisen was that 71 countries were concluding an agreement to import their products into EU. This contract had an aim to help development of the countries in Africa, Caribbean and pacific which are colonies of UK and France which are part of EU as well. Because European Union wanted to facilitate the countries from the Union, they violated the rights for the international trade through trying to expel particularly Latin America to trade in European Union by putting extremely high importing tariffs. As a result, government was interfering into their international conflict. The political forces tried to defend the producers and the domestic trade in the global market because of the EU amorality; it was imposed a “fine” of $191.4 million annually on the European imports. (Hill 2004)

One of the most beneficial effects of the globalization for the humanity is the Internet and the World Wide Web (WWW). Nowadays these new technologies are the easiest and fastest way for selling goods, telecommunicating and the best thing is that they safe a lot of your time. Intercontinental distance is not a problem for these technologies. Moreover, e-commerce is so useful for the global market and it provides quicker and efficient customer services. Amazon and E-bay come to mind as two of the great world e-commerce successful websites. They enable customers to order their purchases on the Web and have them delivered to their home no matter where they are located. In fact, because of the uncomplicated access to these websites and the usage of so many people all around the world, it consist a database and secure sites which enable personal payment and guaranteed delivery of their items. When we are talking about internet and e-commerce, we have to mention and the e-government. The strategy of the Governmental IT is to demonstrate how technology can improve corporate services of government acting on behalf of citizens. The UK has established website called “Directgov” (www.direct.gov.uk) which is for the locals to interact with the government processes online.

It is so easy to criticize the process of globalization and its effects especially when no one pays attention on the facts. But this is something normal for the personnel’s behaviour. It is complicated to can definitely state if the globalization is beneficial or it has more negative aspects to world. Is there someone who can say that? May be not, but if we try to explore it, to make some efforts to develop it in positive direction, to be much more understandable to common desires and needs, may be we will discover the right answer. We are the future so we have to do our best to transform these factors with which we disagree, not only standing aloof. Finally, Globalisation symbolizes our perception for the life and how we consent to live it.