Global Business Analysis
Support Globalisation: Some argue that falling barriers to international trade and investment are the twin engines driving the global economy toward greater prosperity. Increased international trade and cross- border investment will result in lower prices for goods and services. They believe that globalisation stimulates economic growth, raises the incomes of consumers and helps create jobs in all countries that participate in the global trading system.
Anti- Globalisation: In December 1999, more than 40000 protesters blocked the streets of Seattle in an attempt to shutdown a WTO meeting held in the city. The demonstrators were protesting against a wide range of issues, including job losses in industries, downward pressure on the wage rates of unskilled workers, environmental degradation and the cultural imperialism of global media and multinational enterprises. Critics of globalisation view that falling barriers to international trade destroy manufacturing jobs in wealthy advanced economics such as the US & West Europe. The falling trade barriers allow firms to move manufacturing activities to countries where wage rates are much lower.
In the service sector, many Multinationals Corporations have outsourced to nations with low labour costs (E.g. Dell, IBM have “exported jobs”) to more manufacturing activities to low wage nations and contributing to higher unemployment and lower living standards in the home nations. The whole concept of fair trade is specialising in the production of those goods and services that they can produce most efficiently, while importing goods and services that they cannot produce as efficiently. It is also seen as when a country embraces free trade, there is always some dislocation; lost call centre jobs in Dell (but the whole economy is better off as a result). Lost textile jobs at Harwood Industries. According to this view, it makes little sense f or the US to produce textiles at home when they can be produced at a lower cost in
Anti- Globalisation: In December 1999, more than 40000 protesters blocked the streets of Seattle in an attempt to shutdown a WTO meeting held in the city. The demonstrators were protesting against a wide range of issues, including job losses in industries, downward pressure on the wage rates of unskilled workers, environmental degradation and the cultural imperialism of global media and multinational enterprises. Critics of globalisation view that falling barriers to international trade destroy manufacturing jobs in wealthy advanced economics such as the US & West Europe. The falling trade barriers allow firms to move manufacturing activities to countries where wage rates are much lower.
In the service sector, many Multinationals Corporations have outsourced to nations with low labour costs (E.g. Dell, IBM have “exported jobs”) to more manufacturing activities to low wage nations and contributing to higher unemployment and lower living standards in the home nations. The whole concept of fair trade is specialising in the production of those goods and services that they can produce most efficiently, while importing goods and services that they cannot produce as efficiently. It is also seen as when a country embraces free trade, there is always some dislocation; lost call centre jobs in Dell (but the whole economy is better off as a result). Lost textile jobs at Harwood Industries. According to this view, it makes little sense f or the US to produce textiles at home when they can be produced at a lower cost in