Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Essay:
"Opening up the financial system to foreign capital flows can lead, and has led, to disastrous financial crises, which have resulted in great pain, suffering and even violence" (Mishkin, 2006, p.9).
Directly linked to the previous disadvantage and the basic definition of globalization, is the fact that the interdependence of sectors and institutions increases in a global market. In this instance then, a financial crisis within one country or within one institution is likely to generate negative effects upon its partners. The most relevant example of chain reaction to a financial crisis is the current situation, in which the global community is threatened with economic collapse due to the financial difficulties of the United States. The situation is similar in terms of politics or the social environment.
Globalization has often been assimilated with Americanization, meaning by this the desire of the American corporations to transcend boundaries and get access to cheaper resources (Rollin, 1989). Otherwise put, globalization promotes the interests of multinational organizations, which can simultaneously benefit from various comparative advantages, creating economies of scale. These scale economies are situations in which one company (or a unified group of organizations) has access to resources and the power to implement its own prices. The most relevant example in this instance is Wal-Mart. The retail monolith has often been accused of destroying the local economies by employing uncompetitive prices. The situation is similar in regard to globalization, when large corporations become present in small communities and has best been stated by Grzegorz Kolodko (2003, p.12) as the "dying off of some traditional branches of manufacturing in certain countries due to their low competitiveness, which creates rampant unemployment and poverty."
Following the same line of thoughts, globalization has also been accused of generating fierce competition in the international environment. While this may be perceived as an advantage as it forces national industries to develop, it also poses the threat that the national companies will be unable to adapt along. "The disadvantages of globalization are that a firm might not be able to survive the global competition. The cheaper imported goods will kill the domestic industry. This will bring about problems of unemployment and current account deficit to the affected industry" (Suryadinata, 2006, p.206).
Fact remains the national economies do not become discouraged by the global competition and continue to intensify their efforts. A most relevant example in this instance is given by a situation in which the global corporation sells imported goods at uncompetitive prices. The local manufacturers will strive to increase their competitive position by making personal and financial sacrifices. Their efforts will either be repaid or not, but their existence is a proven fact.
The power that these corporations could come to own in the end is yet another reason for concern and materializes in a "threat that control of world media by a handful of corporations will limit cultural expression" (Dark September Rains). This could then lead to violent manifestations, with the aim of preserving the cultural heritage. Then, another disadvantage is given by increased migration (also generated by the corporations' search for cheap and skilled workforce), which could increase the risks of contagious diseases being transported from a location to the other. Then, relative to Americanization, the post-war economic growth was based on consumption, an unrealistic and unsustainable model of economic growth, which could be transferred to the emergent Asian and European countries (Dark September Rains).
5. Discussion and Conclusions
Globalization is the buzzword of the twenty-first century. The concept basically refers to a free movement of information and resources across countries. Its effects are numerous and multifaceted and affect all features of the everyday life, including the social, cultural, economic, political, technological or environmental backgrounds. The specialized literature on the topic of globalization presents the reader with a multitude of sources and opinions, some defending the process, others disclaiming it.
Among the most significant benefits of globalization, one could point out a more efficient allocation of resources or the increased opportunities of economic growth and development through a better access to capitals, technologies, commodities or labor force. Some disadvantages however revolve around the downside of fierce internationalized competition, materialized in the death of national industries (in the face of scale economies and uncompetitive prices), further generating job losses, increased unemployment rates, reduced living standards and even violent manifestations. In this line of thoughts then, the initial quote seems relevant by presenting a real situation.
The literary references to the role that governments play in addressing the threats of globalization are reduced, generally because this role is reduced. The quote however suggests that governments are as much to blame as the multinational corporations. This is probably because the corporations reveal a growing power relative to the government. For instance, out of the largest global economies, 51% are corporatists, and only 49% are governmental. As a result then, governments tend to support the growth and success of corporations (Leonard). Then, another specification to be made is that governments look at globalization as an external force, in the face of which they have no power. Therefore, the sole stand they can take is to adapt along. "Governments portray globalization as an external force that confronts them and leaves them few choices. They have to adapt. Globalization is a reality, not an option as former U.S. President Bill Clinton expressed it. EU commissioner Leon Brittain said: Resisting globalization is an impossible proposition" (Holm). Ultimately then, governments do seem to dance to the songs of the corporations, which are able to play the federal institutions against each other. And their tunes indicate increased competition which does harm the individual citizens. In making this statement however, one has to remain objective and still remember the benefits of the globalizing forces, against its threats.
Ervin, J., Smith, Z.A., 2008, Globalization: A Reference Handbook, ABC-CLIO
Geddes, P., 2004, the Benefits of Globalization, Foundation for Research on Economics and the Environment, http://www.free-eco.org/articleDisplay.php?id=378last accessed on January 19, 2009
Holm, H.H., Globalization and What the Governments make of it, European Institute Firenze, Retrieved at http://www.djh.dk/pdf/forskning/global.pdfon January 20, 2009
Kolodko, G.W., 2003, Emerging Market Economies: Globalization and Development, Ashgate Publishing
Lane, J.E., 2006, Globalization and Politics: Promises and Dangers, Ashgate Publishing
Leonard, a., the Story of Stuff, Story of Stuff Website, http://storyofstuff.ethicalbrand.org/last accessed on January 20, 2009
Mishkin, F.S., 2006, the Next Great Globalization: How Disadvantages Nations Can Harness Their Financial Systems to Get Rich, Princeton University Press
Okolo, S., 2009, Benefits from Globalization, Enzine Articles, http://ezinearticles.com/?Benefits-From-Globalization&id=1075224last accessed on January 19, 2009
Ray, L.J., 2007, Globalization and Everyday Life, Routledge
Rollin, R.B., 1989, the Americanization of the Global Village: Essays in Comparative Popular Culture, Popular Press
Suryadinata, L., 2006, Southeast Asia's Chinese Businesses in an Era of Globalization: Coping with the Rise of China, Institute of Southeast Asian Studies
The International Institute for Environment & Development, 2002, Environment and Urbanization, IIED
Advantages and Disadvantages of Globalization, Dark September Rain, http://www.darkseptemberrain.com/ideas/advantages.html. Ast accessed on January 19, 2009
Benefits of Globalization, Business Maps of India, http://business.mapsofindia.com/globalization/benefits.htmllast accessed on January 20, 2009
What is Globalization? Globalization101 Website, http://www.globalization101.org/What_is_Globalization.htmllast accessed on January 19, 2009[continue]
"International Business Environment Today's Micro" (2009, January 20) Retrieved November 30, 2016, from http://www.paperdue.com/essay/international-business-environment-today-25382
"International Business Environment Today's Micro" 20 January 2009. Web.30 November. 2016. <http://www.paperdue.com/essay/international-business-environment-today-25382>
"International Business Environment Today's Micro", 20 January 2009, Accessed.30 November. 2016, http://www.paperdue.com/essay/international-business-environment-today-25382
Take for instance Red Hat, a leading provider of open source software applications. Its annual report for 2009 reveals an increase in its training and services revenues from $45 million in 2005 to $47 million in 2006, to $59 million in 2007, to $73 million in 2008 to $111 million in 2009. From this assessment, the leaders of the organization could come to the conclusion that it would be wise
The successful firms have the war chest, and often this was acquired through strong long-term planning. Thus, successful firms have the ability to build upon that success during economic downturns, which sets them up to be in an even stronger position when the next downturn strikes. Works Cited: Becton, B., & Schraeder, M. (2009, January). Strategic Human Resources Management. Journal for Quality & Participation, 31(4), 11-18. Retrieved May 5, 2009, from
Differences in international orientation include ethnocentric, polycentric, geocentric, and regiocentric. Each of these has varying levels of recognition of how diverse one culture is relative to another with the ethnocentric mindset being the most biased towards ones' own culture being the best. The one that sees a more accurate view of globalization is polycentric which sees the unique values of each culture on its own merits. Globalization has also seen
International Marketing A situation analysis is termed as a foundation to be used for a marketing plan. A situation analysis normally includes an examination of both the internal and external factors that can affect a business. A situation analysis creates an overview of the organization that acts as a guide to understanding the factors that influence the future of an organization (Lorette, 2010). The paper will look at the situation analysis
International Training and Development International training and management development are amongst the well-known themes of business management structures. The remarkable work of different researchers on the significance and implementation of these theories is used by Multinational Enterprises (MNE's) to some extent. However, MNE's have failed to adopt the entire essence of this theme and only bits and pieces of this culture have been implemented. This paper is a representation of the
The following Table labeled Table 1.0 shows the Direct Competition Comparison in the industry sector of Marriott International, Inc. Table 1 Marriott International is known for being creative and especially so in relation to the IT dollar. In a report entitled "The Keys to Marriott's Success" stated is that "Marriott and its IT department have documents and system, policies and procedures and even history and philosophy to guide their decisions frees
In the long run, Machan & Chesher's argument makes sense -- care for the health and safety of company employees and see the company grow more profitable! Care for one's own health and one will be a better employee! However, management does not always take the long-term vision that, 'if I allow my employee to take a day off for the flu, he or she will be more productive upon