Globalization and Its Impacts
Globalization and Its Impacts
Introduction
Globalization is an accelerating process in today’s world. Countries and spaces are encompassed in spite of their geographic distances. Cross-border flows of information, capitals and labor have played an important role in economic, social and cultural development and the world becomes flattened with globalization. Globalization benefits the participating countries by motivating their economic growth, pushing forward social and cultural development, and changing the working pattern of people. However, globalization may also raise costs enlarging gap between the developed countries and the developing countries, increasing risks and economic fluctuation, and putting greater pressure on organizations. In this process, the role of governments has to be adjusted since the governmental intervention environment has significantly changed. Organizations also have to adapt to the challenging business world based on diagnosing of the new situation. This essay aims to examine the benefits and costs produced by globalization and its challenges for national governments and organizations. In analyzing the impacts of globalization on organizations, Ikea is studied as a case. In general, this essay purports to comprehensively evaluate globalization.
Concept of globalization
Definition of globalization
There are different definitions for globalization. For instance, Ritzer (2007, p.1) defined globalization as “an accelerating set of processes involving flows that encompass ever-greater numbers of the world’s spaces and that lead to increasing integration and interconnectivity among those spaces.” This definition emphasizes the combination of different spaces and the role of flows in globalization. This definition touches the core of globalization. Scholte (2005, p.59) referred globalization to “the spread of transplanetary - and in recent times also more particularly supraterriotial – connections between people. A global [relation] …
Introduction
Globalization is an accelerating process in today’s world. Countries and spaces are encompassed in spite of their geographic distances. Cross-border flows of information, capitals and labor have played an important role in economic, social and cultural development and the world becomes flattened with globalization. Globalization benefits the participating countries by motivating their economic growth, pushing forward social and cultural development, and changing the working pattern of people. However, globalization may also raise costs enlarging gap between the developed countries and the developing countries, increasing risks and economic fluctuation, and putting greater pressure on organizations. In this process, the role of governments has to be adjusted since the governmental intervention environment has significantly changed. Organizations also have to adapt to the challenging business world based on diagnosing of the new situation. This essay aims to examine the benefits and costs produced by globalization and its challenges for national governments and organizations. In analyzing the impacts of globalization on organizations, Ikea is studied as a case. In general, this essay purports to comprehensively evaluate globalization.
Concept of globalization
Definition of globalization
There are different definitions for globalization. For instance, Ritzer (2007, p.1) defined globalization as “an accelerating set of processes involving flows that encompass ever-greater numbers of the world’s spaces and that lead to increasing integration and interconnectivity among those spaces.” This definition emphasizes the combination of different spaces and the role of flows in globalization. This definition touches the core of globalization. Scholte (2005, p.59) referred globalization to “the spread of transplanetary - and in recent times also more particularly supraterriotial – connections between people. A global [relation] …