GLOBALIZATION

Globalization

Globalization

Introduction

Globalization is the main change is in today's workplace. It stands for the economic interdependence between countries with cross-national exchange of goods and services, capital development, know-how and people. This entry contains in particular the organizational and human aspects of globalization.

Globalization has come into general use since the 1980s, was to create on technological progress and the electronic communication that made it easier for the economic interdependence between countries. Globalization is not just a recent phenomenon. But today commerce and financial services are much more developed and deeply integrated than in the past. The most striking aspect of this, the integration of financial markets is made possible by modern electronic communication.

Background and History of Globalization

Twenty-five years ago nobody talked of the world economy, the prevailing view was international trade, consisting of international trade and foreign investment. But today it has the form of a global economy, consisting taken from flows of information, technology, money and people, led and state organizations such as the NAFTA (the North American Free Trade Agreement) and the European Community, global organizations, such as an international Standard Bureau (ISO) and the International Monetary Fund (IMF) and commercial enterprises, such as multinational companies (MNCs) and cross-border alliances, mergers and acquisitions. These relationships have improved participation in the global economy and have the key to domestic economic growth and prosperity.

Myths about globalization

Global connotes a holistic, integrative strategy. There are some myths about globalization, which should be avoided:

Globalization is simply a presence in other countries without any connection between the activities in each country.

Global strategy means doing things the same way everywhere.

Globalization is not always a stateless organization with national or community ties.

Globalization requires waiver of land values.

There is no need for the integration of the acquisition or merging with foreign companies.

A global strategy must involve the sale or operations in another country.

In fact, globalization is not about the preceding list. Rather, it comes to global integration, not the internalization.

Debate on globalization and its impact

Globalization also increases the material progress. If consumers able to choose alternatives to domestic companies are in competition with the world's most efficient alternatives, they have exposed look for ways to power their products and services better and cheaper. It also means that each company and the nation in a position to produce what is best, importing other goods from countries where they are made cheaper, for a total increase in world production is specialized. The side effects of this material progress are that ideas and technologies are easily transferred across borders and capital move freely to the places with the most promising ideas and innovations (Carter, 2004).

Globalization is particularly important for poor countries. In an open world, they can share technical and business solutions that richer countries have the generations and the billions of dollars to develop, they can win investment from richer nations, and goods may in the rich markets to sell. This ability, all stages of industrial development to skip explained why countries with open economies are faster by the rule of ...