GLOBALISATION PROCESS

The impact of the globalisation process on the company



The impact of the globalisation process on the company

Introduction

The purpose of this study is to expand the boundaries of our knowledge by exploring some relevant information relating to globalization process and its impact on the company (LG electronics, South Korea). Globalization process has been defined as the process of denationalization of markets, the laws and policy in the sense of linking peoples and individuals for the common good. It is characterized by the removal of economic barriers that prevent the free movement of goods, services and mainly capital. The process of globalization is the result of innovative human and technological progress. It refers to the extension beyond national borders, the growing interdependence among countries, the growing integration of economies around the world (this in all levels of human economic activity), particularly through trade and financial flows. It also covers the cultural, political and environmental impacts. Therefore, we can say that globalization is a concept that aims to describe the immediate reality of a society that is not fractioned, but widespread, in which most things are equal or mean the same for everyone (Wolf, 2008).

From the economic point of view, globalization is a process of market integration across the globe. This refers to the formation of economic blocs oriented under the logic of free trade, in order to reproduce the capital. This process has involved the increasing interconnectedness of markets around the world. In the social field, it involves the reduction of the distances between all countries. For instance, it plays a vital role in the development of communication processes among individual and entities; the best example in this case is the initiation of Internet. It is essential when talking about the risks of Globalisation to define the global risk society, its appearance, its definition, and its key features to understand because they generate negative consequences on the environment and health due to Globalisation. The most important features of contemporary society called post-industrial society are the technical and economic development and the great communication and dependency between one country and another. In the next section, the author will conduct a critical analysis of the globalization process and its influence on LG electronics. While examining the process, the author will also take into consideration the topic of regionalization and localization, global production networks, geographies of labour and financial globalization.

Company Overview

The LG Company was founded in 1958, producing radios, TVs, refrigerators, washing machines, air conditioners and vacuum cleaners. Initially, the company was known by the name of Gold Star Co., Ltd; however in 1995 Gold Star was renamed LG Electronics, where LG stands for Lucky Goldstar. The Company offers products in the areas of information technology, consumer electronics, mobile communications, photovoltaic, and household appliances. LG Electronics is the world leader in the business of mobile phones. The subsidiary LG Display is the second-largest manufacturer of liquid crystal displays (LCDs). In addition, LG is the market leader in CD-ROM ...