Competitiveness Globalization Is an Extremely

Competitiveness

Globalization is an extremely wide concept, implying the migration of numerous features across boundaries. These features belong to the fields of economics, finance, politics, technology, national security, culture, environment and so on. Given this status quo then, it is only natural that some changes will occur within business communities, mostly revolving around opportunities presented to the actors in the field.

A most important opportunity is given by the new found ability to more fruitfully benefit from David Ricardo's theory of the comparative advantages of countries. In this line of thoughts, corporations within one territory, say for instance the United States, are able to combine the advantages of other countries. To better understand, take the case of an organization producing sports apparel. They could purchase their commodities from one country which reveals low costs on raw materials; then, they could have the items assembled within another country, which reveals a comparative advantage in terms of cost-efficient labor force. Nike is a relevant example of an organization that has outsourced most of its manufacturing operations outside the United States, handing only administrative and creative responsibilities within the U.S.

Then, another tremendous business opportunity generated by the forces of globalization refers to ability to present the corporate products and services to a global audience. In this line of thoughts, today's companies no longer place their items on national markets, but also onto the international settings. This ensures exponentially increased profits and reputation. Foremost, international operations will also attract international investors and will lead to even more business opportunities. McDonald's is the most relevant examples of the category of companies which have succeeded in addressing a global market (Friedman).

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It is not just Saudi Arabia that plays a growing role in this age of globalization, but the entire Middle East. The region is the leader in petroleum exports, but faces the challenges of fresh water resources. Here, the risks are that wars will start for scarcity of water, rather than oil, as in other regions. Given however that Saudi Arabia is the largest petroleum exporting country, the role it plays in this globalization era is following an ascendant trend. For instance, oil and petroleum were the forces which fueled the development processes at their cores. The Saudi Arabian petroleum is used to transport resources and finished product from one place to the other; to help people travel from one location to the other and to support the growth of the automobile industry -- all forces of globalization, which would be severely affected if Saudi Arabia limited its exports. Another potential impact of export limitations would revolve around the necessity to develop alternative sources of energy, which reduce the dependency on foreign oil, but which also protect the environment. Ultimately then, in this age of globalization, Saudi Arabia does not play a decreasing role, but a growing one.

The olive tree stands for that part of the world which fights to preserve its traditional values in the face to cultural globalization. An example in this sense could be given by the inability to market short skirts in the Middle East. The women there are still eager to respecting the cultural values of their religion and will not even consider wearing pieces of clothing that reveal parts of their bodies. At the other pole stand the highly globalized regions, which strive to prove to the world that they are modern. In these regions, it will be rather difficult to manufacture and sell old style traditional clocks as it is likely that the consumers here will prefer digital clocks with several features, such as snooze or radio.

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Globalization is directly linked to industrialization in the meaning that the Industrial Revolution set the basis for business expansion and collaboration in terms of resources (human capital, financial capital, technologies and commodities) and profits. During the Industrial Revolution also, a massive movement of people from the rural to the urban side was also observed. It can then be concluded that globalization is directly linked to urbanization. Most of the operations that generated, and continue to support the expanding forces of globalization, are present within cities, rather than villages. Agricultural processes have been industrialized and little emphasis is placed on individual farmers. Also, financial resources are traded within the city landscape and this is the region which offers employment opportunities and income. As a result, globalization and urbanization go hand in hand.

Just as it has gained numerous advocates due to its advantages, globalization has also attracted opponents. These base most of their arguments on the belief that globalization stifles local cultures and strives to impose the traditions and ways of the global power, mostly the United States (globalization has also been assimilated with Americanization). Local economies are also endangered by globalization and the most relevant example in this sense is the disappearance of local mom & pap stores with the emergence of Wal-Mart in the respective regions.

Despite the loss of cultural and economic identity, globalization is the natural process of the contemporaneous society and should not be stopped. Measures should however be taken in order to ensure that the adherence to international norms is not compulsory, but benevolent.

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In Common Wealth: Economics for a Crowded Planet, Jeffrey Sachs proposes a model that will address four major points: the growing number of the global population, the scarcity of the land's natural resources and the need to develop sustainable sources of energy that protect the Earth from climate change and the extinction of species; the end of poverty and better international cooperation between governments. The author's endeavors are laudable and they do pin point to the most severe challenges of the modern society. However, his model for resolution and his goals seem rather utopist. Despite the technological ability to develop alternative sources of energy that better protect the natural environment and the political ability to foster better international communications, decreasing fertility rates and ending poverty do not seem the most realistic goals.

Sachs' agenda of "prosperity for all" is a volatile concept and this could not be achieved without the implementation of drastic political regimes, such as the return to a communism that controls all property rights, ensures jobs and forces the population to attend these low paid jobs which do indeed end extreme poverty, but which barely ensure decent living standards. Such a political model is however unsustainable in the long-term and history has already proved the how and why's of the equation. The modern society promoted individualism and the ability to stand out from the crowd -- this is mostly achieved through the levels of education, a good job, a good house and so on. Given that in a modern and democratic political system each individual is free to choose his actions, it is highly unlikely that all people will have similar levels of professional development and will be able to enjoy similar socio-economic conditions. The most that can be done refers to equal opportunities, but the end of poverty and prosperity for all seems utopian.

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In order to resolve the current problems of our society, it is imperative that battles against poverty, pollution and economic decline be simultaneously fought. Poverty issues should be addressed through the insurance with equal opportunities to education and jobs to all individuals, regardless of age, gender, social background or geographic location. There are however some regions throughout the world where these measures would not generate much positive impact. The general approach should be an analysis of each region's characteristics and an emphasis on those particular advantages that could be used in the international context. Otherwise put, the implementation of David Ricardo's theory of comparative advantages could represent a viable solution to the poverty issues within the world. Also, it is necessary to reduce birth rates in poor regions as these further increase the levels of poverty (despite the declining birth rates in highly civilized countries, the global population continues to grow). This could be achieved through education programs or the offering of family planning services.

Cleaning the environment should also be achieved through educational programs. Individuals have to be taught about the challenges our planet is facing and the consequences of their actions. Educational programs should be offered in schools and should continue throughout the entire life of the individual. Additionally, strict laws should be implemented to punish those who endanger the safety of the natural environment, be them individual consumers or corporations.

Economic prosperity is likely to be generated by the previous two endeavors, but it should also be fostered by political cooperation at an international level. This would be stimulated through the presentation of the mutual goals and benefits -- a clean and safe planet, economic growth and reduction of poverty.