Daniel Hemingway
BUS606: Global Comparative Management
Dr. Hector IwekaSeptember 7, 2014
Global Impact
From just reading the title alone it is easy to assume what the remainder of this paper will be speaking about; however, the topic itself has more entwined turns and shifts than a mere title can divulge. Globalization is a group of process, methodologies, theories, and principles that stretch across the world and appears dressed in one uniformed concordance. Globalization’ impacts are highly visible as it has forged civilizations out of unbeaten and hidden paths of the deepest jungles; and even within jungle communities so primitive to the point where modern currency is still in the form of animals and artifacts. Business …show more content…
that was once a colonial trade event has transformed from bartering of flour and seeds in the community market to precious metals and simple pieces of paper called bearer bonds over internet in international waters. Globalization has constructed a new business world identity with both positive and negative impacts that have reshaped cultural differences for many generations yet to come.
Globalization
Positive Impact
Globalization has affected everything; however, it has affected everything differently, thus, the conversation about global impact depends on what the topic is in relation to: income and employment are huge entities affected by it.
Globalization has focused energies, regulations, and strategies toward developing poor undeveloped nations and third world countries thrusting them into various development stages. It has enabled some developing countries to became larger and richer quicker, while giving other poor countries the opportunity to improve their economic structure. Structures that have changed in response to the forces of comparative advantage: in other words, they have moved up the value-added chain (Spence, …show more content…
2011).
Globalization has also changed the entire business environment not limited to only organizations with international operations but incasing all businesses seeking profit. This process is mainly the grouping of all businesses and their processes worldwide. Employment is continually growing; however, the growth is much more far spread than the US, China, Germany, and Russia. The spread is in other parts of the tradable sector--most prominently, finance, computer design and engineering, and top management at multinational enterprises.
“Globalization has been affecting the price of goods, job patterns, and wages almost everywhere. It is changing the structure of individual economies in ways that affect different groups within those countries differently. In the advanced economies, it is redistributing employment opportunities and incomes” (Spence, 2011).
Most often, the spread of economic wealth affects would be considered beneficial; however, when other suppliers and buyers are dependent upon scarcity of certain items in specific areas for their organizations to make a profit, globalization is not so favorable.
Negative Impact
Some economists argue: increasing trade and economic growth are linked and they stress that trade is good for growth and growth is good for the poor equaling job creations thus, easing poverty issues.
However, globalization impacts are very lopsided producing negative counter effects to areas that may have once been previously protected; mainly, cultural difference (Lee, & Vivarelli, 2006, p. 167). Globalization is best blamed for integrating Western products and time saving methods with ancestral and historical time consuming methods and procedures to complete various processes.
It has also introduced younger generations to ‘skip around’ tactics that often suck out or irreversibly alter cultural traditions, losing century old principles, techniques, and strategies. This process has introduced business products to areas / locations that had no need for music or clothing. It has brought televisions and telephones into jungles where outside communication was once unheard of, and it has brought weapons and thieves to locations where natural resources were harvested according need and not value. Some consider globalization a miracle but it is clear to see how others consider it a cultural
destroyer.
Globally altered Culture
Has globalization created or been the reason for cultural differences? Yes. Globalization has gone a few steps further and even created a different culture. At one moment in time cultural differences before globalization, was as simple as skin tones, artifacts, clothing, or religious beliefs; however, and not only limited to this process culture transformed and continues to morph according to technology and economic issues today. Entire regions around the world are simply known for their abilities to process a single product within their communities.
Globalization opened up the market and made the market more competitive as well as accessible for labor violations, debilitating ethical arenas, and governmental corruption. A main concern of emerging countries pertaining to globalization is the fear and tension of losing self-identity to external forces; as often times cultural diversity after mingling with consumer influences, tend to morph into a completely different cultural entity (Malota, 2012, p. 96).
Conclusion
Globalization started out as a need for products to reach more consumers but in the end it transformed markets worldwide into an integrated singular economic machine. Taking issues of income inequality from one side of the world and developing issues to aid, mend, or reinvent process to use resources to assist individuals on both sides of the coin is what globalization has delivered. Yes globalization has issues that will always need to be adjusted but the process has helped for more than it has hurt economies, culture, and business. Business in the beginning was once a colonial trade event but has since transformed into a new process. A new process, that went from bartering of flour and seeds in the community market: to precious metals and bearer bonds over internet in international waters. Globalization has constructed a new business world identity with both positive and negative impacts and those impacts will reshape cultural issues for many generations, yet to come.
References
Lee, E., & Vivarelli, M. (2006). The social impact of globalization in the developing countries. International Labour Review, 145(3), 167-184.
Malota, E. (2012). Global Cultures? Consequences of Globalization on Cultural Differences, a Commentary Approach. International Journal Of Business Insights & Transformation, 5(3), 94-100.
Spence, M. (2011). The Impact of Globalization on Income and Employment. Foreign Affairs, 90(4), 28-41