Globalization 2014
Globalization
Globalization as a term usually refers to describe intercontinental or international economic, social and political integration (Wells, Schuey, Kiely) and is a current day phenomena that is present in all parts of the world and undeniably affects each and every sphere of life. The business is not an exception; many are taking advantage of it to gain profits and grow business opportunities in general, therefore the focus of this paper will be on the main aspects of globalization in relation to business environment.
Historically globalization emerged because of trade and explorations - in older times the Age of Discovery brought about the biggest change in this field and allowed to import and export goods that were not known or available so far, e.g. gold, spices etc. Together with goods also parts of culture were transmitted and new materials gave a chance for new inventions, besides the infrastructure for such global exchange had to be developed to ensure more and more efficient trade. One of the best known examples is the Silk Road, which connected Far East with Europe, but also gave a great development in regions that it crossed. Many centuries later industrialization came and allowed producing things more cheaply and efficiently. This initiated globalization in the modern sense – not only catering the daily needs got easier, but also transportation developed and gave the opportunity to travel and transport goods much cheaper. After downfall of globalization caused by the first and second World Wars, more and more organizations and multinational corporations were made to ensure more free trade and decrease of taxes. Development of communications TV, telephone, radio etc. promoted the cultural globalization widely and contributed to much easier overseas operations. An important mark in modern globalization is the emergence of internet and online computers, which formed the globalization as we understand it nowadays (Osterhammel, Petersson).
Globalization as a term usually refers to describe intercontinental or international economic, social and political integration (Wells, Schuey, Kiely) and is a current day phenomena that is present in all parts of the world and undeniably affects each and every sphere of life. The business is not an exception; many are taking advantage of it to gain profits and grow business opportunities in general, therefore the focus of this paper will be on the main aspects of globalization in relation to business environment.
Historically globalization emerged because of trade and explorations - in older times the Age of Discovery brought about the biggest change in this field and allowed to import and export goods that were not known or available so far, e.g. gold, spices etc. Together with goods also parts of culture were transmitted and new materials gave a chance for new inventions, besides the infrastructure for such global exchange had to be developed to ensure more and more efficient trade. One of the best known examples is the Silk Road, which connected Far East with Europe, but also gave a great development in regions that it crossed. Many centuries later industrialization came and allowed producing things more cheaply and efficiently. This initiated globalization in the modern sense – not only catering the daily needs got easier, but also transportation developed and gave the opportunity to travel and transport goods much cheaper. After downfall of globalization caused by the first and second World Wars, more and more organizations and multinational corporations were made to ensure more free trade and decrease of taxes. Development of communications TV, telephone, radio etc. promoted the cultural globalization widely and contributed to much easier overseas operations. An important mark in modern globalization is the emergence of internet and online computers, which formed the globalization as we understand it nowadays (Osterhammel, Petersson).
References: Begg, I., Draxler, J. and Mortensen, J. (2008), 'Is Social Europe Fit for Globalisation?: A Study of the Social Impact of Globalisation in the European Union '. Brussels: The Centre for European Policy Studies[Online] Available at: http://www.ibm.com/ibm/governmentalprograms/pdf/simglobe_fin_rep_en.pdf (Last consulted: 1st November 2014) Crabtree, James. 2012. Mumbai: Ft.com [Online] Available at: http://www.ft.com/intl/cms/s/0/bd8e769a-b53c-11e1-ab92-00144feabdc0.html (Last consulted 10/11/2014) Gary J. Wells, Robert Shuey, Ray Kiely. 2001. Globalization. New York: Nova Publishers. Jürgen Osterhammel, Niels P. Petersson. 2005. Globalization: A Short History New Jersey: Princeton University Press. Lei, D., & Hitt, M. 1995. Strategic restructuring and outsourcing: The effect of mergers and acquisitions and LBOs on building firm skills and capabilities. Journal of Management, Vol.21(5), p.835–859 Marc J. Schniederjans, Dara G. Schniederjans. 2005. Outsourcing and Insourcing in an International Context. New York: M.E. Sharpe