Globalization and stakeholders

Globalization and stakeholders

Introduction

The term globalization refers to moving business operations outside the local boundary. It includes the exchange of economies, finance, labor, technology, culture, taste and preference. When one organization moves its operation outside the local borders, stakeholder and shareholders participation is accelerated. The financial transaction which takes places outside the national boundary is also considered as the part of globalization. The term 'globalization' constitutes very deep and historical meaning in it.

A person who has indirect or direct stake of the market is known as stakeholder. These are the people, who can directly influence the business operation of the organization. Stakeholders are actively involved in organizations policies, objectives and actions. The prominent stakeholders of the company includes; customers, directors, community, supplier and the government from which the organization draw its resources. All the stakeholders does not have the same rights, all have different considerations. In this contemporary world, stakeholders are regarded as the heart and blood of the organization. The effective strategies of stakeholders help the organization to enter in to International arena.

Discussion

The global economy measurement is performed through gross domestic product (GDP). The national well-being of any country is identified through GDP (GoldSmith & Mander, 1996, pp 197-206). The global economy can also be identified through gross domestic product. GDP includes five elements which are stated as below

GDP= C+I+G+ (X-M)

C is the private investments, I is gross domestic private investments, G is the government expenditures (X-M) is net exports and imports. In global context (X-M) holds the uttermost importance. The goods and service that are officially produced in a country during a year is known as GDP. A private investment includes (C), all the perishable and non-perishable goods and services which are consumed by an individual during the year. Private investment includes all the non-household expending by the organization throughout the world (I). Government spending on infrastructure and other development which are performed during the fiscal year is regarded as government expenditures (G). The next export and import in the country throughout the year determines the export and import of the country.

X = Exports

M= Imports

If X is greater than M than company is doing a good job means exports are greater than imports and vice-versa. The global progress of different countries is determined from GDP (X-M) element. If, a country imports are less than its export it reflects that the country is doing a good job. Net exports and net exports help in identifying the GDP on global context. GDP is regarded as one of the most important ingredient of identifying the national-wealth of any country.

The countries who regard debts as assets and cost as income feel that they are doing exceptional job, and believes that they re at boom. Sooner or later the bills will come on due, which will actually reflect the real picture of country growth and development. This actually what is happening with United States and other developing countries now a days. The country real picture will appear, if they do ...