Since the 1980s Globalization has become a quality phenomenon that cannot be ignored. Simon Jeffery (2002) said that the Globalization is a process – a simple way of doing business or financial markets. Deeply, Globalization refers to the cross-border movement of goods and capital, inspiring worldwide population movements, trade and the cultural exchanges. According to Azumah(2013) shows the economic, social and technology are contact with each countries so that the enterprises toward globalization also towards a capitalist society. Therefore, globalization can be obviously seen a positive process.
The International traders have more advantage in the world because there are two main factors impact the globalization business market. Firstly, declining trade and investment barriers. In 1993, established the World Trade Organization, formulating the policy of international trading system and reducing tariff rates. Because of reduced trade barriers between countries, trading becomes frequent, thus it is benefit to raise world production. According to Charles (2008, p.13) the volume of world merchandize trade expanded 27 times, which has grown faster than the year of 1950. Therefore, it can obviously see that the WTO has made Multinational Corporation develop freely and expand rapidly. Secondly, changing the role of technology, such as telecommunications, the Internet web and transportation technology. Technological change is very important; it can make the different countries of the region could contacted by technology also make trade between different countries can more convenient. Fisher (2006) point out the proportion of international telephone traffic has risen three-fold since 1991. Combination of these two factors, making enterprises and businessmen from different countries can more closely in world trade.
Under globalization, some of the problems arise out gradually. Some developing countries, labor wages are squeezed by international business cause the country economy has not risen up basically. Take Samorin for example (The dark side of globalization), Samorin is stay in west Slovakia, as wages rise, company consideration of profits and wages then they decided to shifting production to other country. Because of international trade law protecting the company can simply move to another place, which labor wages is the lowest. This phenomenon can be see that the local labor has rising unemployment rate. So beneficiaries are large companies, on the contrary fail are those employees being laid off. Gethin Chamberlain (2013) argues that Western company has exploited the labor that worked in India. In India’s tea industry, Assam tea just pays a basic 12p an hour for a lobar. Therefore, under the protection of trade doctrine, some of the international companies can take advantage of preferential policies; it is reduce the cost of labor in developing countries. Low wages and exploitative labor costs have led to the national economy still poverty. Finally, the big company won a low-cost and high-profit; the local lobar lose their advantage.
The international company can influence on the other country’s culture. Globalization has disseminated economic opportunity, through this opportunity can communicate goods technology and easy understand different culture in the world. For example, young people in Asia understanding the UK’s live and culture, through movies or TV shows can understand each culture quickly. However, globalization makes culture more uniform cause to a unified culture around the world. For instance, America fast food and Japanese sashimi can be consumed in different regions and this might impact of the traditional culture. Furthermore, in Asia a lot of people change their habits to wear a suit or dress. This is the result of cultural exchange but this has led to the culture original might disappear faster. According to Ritzer and Atalay (2010) explain that when McDonald arrived in Asia, East Asia has fast to change their diet. As can be seen that the globalization not only can promote economic prosperity but also can make traditional culture disappear gradually. Therefore, the different local residents are accept the foreign culture and foreign diet in their daily life. Clearly, the international businessman is the biggest beneficiary.
Developing countries is the largest producer. Developing countries need more manufacturing and processing plants, which cause environmental pollution. Globalization has impact of environment; due to increased demand and the growth in the developing and industrialized heavily dependent on fossil fuels, greenhouse gas emissions. Because of the economic and trade led to over-exploitation, for example, there have original forest timber exports about 90 percent in Australia but it has over-exploitation then nearly half of the forest cover of the earth are gone. Francesco (2010) disputed nearly 25 percent of commercial species have been overexploited. The global warming and climate change that cause negative impact on the environment also economic development let environmental problems increase. Therefore, the residents who live in the developing countries are the biggest loser in the world. On the other side, the World Trade policies will protection the big company even they produce overdose.
To sum up, globalization makes global economic become prosperity; however, behind the globalization there have some problem have to face.
In my opinion, the businessman is the biggest winner in the globalized world. First, the Western company uses the cheaper labor in India and they reduce the labor costs, improving commodity profits. Second, the western company invasion of another country 's culture, many big companies to change people 's lives and habits, such as McDonald 's, America movie, TV program. Thus, all of the views show that the biggest winner is the international business.
Bibliography:
Jeffery, S. (2002) what is globalization? Available at: http://www.theguardian.com/world/2002/oct/31/globalisation.simonjeffery?INTCMP=SRCH (Accessed: 31 October 2002).
Hill, Charles W. L., (2008) Global Business Today. 5th Ed, mc Grow-Hill Int. Editions.
Fisher, R.W (2006) Globalization’s Hidden Benefits. Available at: http://yaleglobal.yale.edu/print/3335 (Accessed: 4 July 2006)
The dark side of globalization(2008)Available at: http://www.economist.com/node/11436628 (Accessed: 29 May 2008 )
Ritzer, G., and Atalay. Z., eds. 2010. Readings in globalization : key concepts and major debates Oxford: Wiley-Blackwell.
Francesob (2010) The effects of globalization on the environment Available at : http://www.allvoices.com/contributed-news/6301040-the-effects-of-globalization-on-the-environment (Accessed: 13 July 2010
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