GLOBALIZATION

Globalization and Its Impact on Contemporary Society

Globalization and Its Impact on Contemporary Society

Introduction

The world is shrinking and means of communication travel and trade are increasing with rapid growth. The brands once use to be limited to a country are not being imported and exported to countries possessing different culture, languages and mind set. It is all because of globalization that today we see international brads on the street of our own country. Globalization is a process where integration of culture, organization, languages and countries takes place across the globe. Globalization has become a mean to making world closer to each other for commercial and ethical purpose. Globalization today is not an option valid for the company to opt for preferably is has become a fact for a company to go for if they want to earn a profit. Globalization has resulted its impact on culture, infrastructure, trade, and proliferation of communication, free market on local, regional, and national economies

Globalization is not the process that started sometimes back, but it a process that has been taking place the day since humankind has started trading. it has faced many reforms from the time of Great Explorers to Industrial Revolution and Transportation and Communication Revolution which has now resulted in the world became a global village. The revolution of television and the internet has played the major part in supporting and growing globalization. Globalization is referred as liberalization because it has removed the government-imposed restriction on the trade amongst countries, which has now made the world as open and borderless world economy. International trade is booming and since 1969 the companies has grown from 7000 to 24000 in 14 richest countries. The importing of goods and services accounts for 24% of the gross domestic product worldwide, which is twice the level of 40 years.

Globalization creates opportunities, and cost, and it should not be demonized or scapegoat the major issues that are distressing the world. The foremost driving forces are (1) trade and investment liberalization; (2) technological innovation; (3) entrepreneurship; (4) global social networks.

Myths tell that entrepreneurship and technological have played the vital role in globalization, but it does not alone explain the economic integration. Government has always played the role and so does in globalization the role of permitting economic integration of activities by adopting market-oriented policies of both local market and international market.

Today majority of the companies have moved their business across the world with all companies having different reasons. Companies use many reactive or proactive approaches to deal with the competitors. The reason to globalize is different for every company, major areas for globalization are (1) Growth Opportunities; (2) Economies of Scale; (3) Incentives and (4) Resource access and Cost Savings. Companies find their brands to reach at a maturity phase when dealing in the same market, and do not find it profitable to reinvest the recourses and profit in the business. Consequently, companies penetrate in the latest market by utilizing their resources such as machinery, human capital, technology management and profits. Companies strive for achieving economies of scale by which they can achieve maximum output at ...