Globalization

Globalization

Introduction

Today the playing field for doing business is just across the globe, national borders are no longer a barrier to companies. Technological breakthroughs in the field of communications, transport and computing have revolutionized the way we do business, live and think in our businesses, we cannot survive in perfect isolation because the world has become more complex and interconnected than ever before. Globalization can reduce the global costs in different ways. These include economy of scale, lower cost if factors, concentrated production, flexibility, and increased bargaining power. An economy of scale with respect to globalization means combining production or other activities of two or more countries. Lower cost of factors is possible through leading manufacturing or other activities to low-cost countries (Wolfe, 2003). On the other hand, concentrated production refers to reducing the number of products manufactured in many local models to a few global. Flexibility is achievable from the production site to site at short notice to take advantage of the lowest cost at a given time. On the other hand, increased bargaining power is a strategy to move production across multiple manufacturing sites in different countries, which significantly increases the bargaining power of a company with suppliers, workers and governments.

Discussion

Globalization means increased interconnectedness, the expansion and deepening of the different social, economic and political, the growing interdependence of all societies together, promoted by the increase in financial flows, financial and communication and catapulted by the third industrial revolution that facilitates the flow can be performed in real time (Ritzer 2010). In economic globalization can be understood as a new phase of expansion of the capitalist system that is characterized by the opening of national economies, the increase of international trade, the expansion of financial markets, the spatial reorganization of production The ongoing search for comparative advantage and competitiveness that gives priority to technological innovation, the emergence of high unemployment and falling wage levels (Zinkhan, 2002). Globalization has become almost commonplace in the justification of any action or interpretation of the change that occurs both in public and in private. Its spread seems to derive from one's ability to explain the task force for a number of changes and impacts that occur in everyday life with extraordinary hardness. Globalization appears to be the most important issue in the social sciences since the late 90's. The key phrase is repeated continually refers to "the challenges posed by globalization," and also appears as the main justification for public policies, to be adopted by very unpopular or painful they may be (Johanson, 2004).

Therefore, we must diversify our eyes to account for the various interrelationships between global and local, public and private, individual and community, individual gain and the common good, conflict and consensus building, the cultural change, poverty and urban violence. Outsourcing is a practice dating from the beginning of the Modern Era. This concept is not new in the contemporary business arena, as many companies make it a competitive business strategy. Delegation of responsibilities and commitments that are not inherent to ...