IMPACT OF GLOBALIZATION

Impact of Globalization

Impact of Globalization

There are competing definitions of globalization, some favorable and others less so. From the perspective of business, it is a process of worldwide economic integration. A more broad perspective describes the process through which culture is diffused throughout the world as a result of various forces including trade, travel, and communications. In some cases, the term is often used without clear definition. For example, Ramesh Diwan, professor of economics at Renssalaer Polytechnic Institute, says, "Globalization has become a buzz word." He continues, "Like other similar buzz words, such as sustainable development, it is rarely defined but used to promote arguments favoring business interests." Therefore, an introduction to the topic requires a working definition.

Globalization is the intensification of economic interaction between people, organizations and governments of different nations. Globalization includes changes in political situations, economic and culture. The cultural changes which we are concerned with in this essay are hard to identify but are very important for different nations of the world. Globalization is more than just “Americanization”, Americanization may mean the culture which is recognized by most of the world influenced by United states. Americanization has a different meaning to many people. Imposition of American culture, domination of U.S. products, people, and businesses are some of the concerns that might lead one to believe that globalization is synonymous to Americanization (Johnson, 1998).

Americanization has a different connotation to many people. Some feel it is the influx of American culture, values, and violence that is sometimes commonly depicted and glorified in Hollywood movies. Others feel it is the political, social, cultural and economic domination of a superpower like the United States. Now that America is often regarded to as the only super power left in the world, some unsatisfied local politicians in many developing countries would like to tag globalization as nothing short of Americanization of their culture, customs, and their way of doing business. True, American multinationals like Coca-Cola, McDonald's, KFC, Pizza Hut, IBM, etc. can be seen throughout the world. Yet, there are important reasons why globalization does not mean Americanization (Daniels & Caroline, 1993). As a matter of fact, there are important American virtues that lend themselves to global appeal. It is the prevalence of some of these virtues that makes American business a truly global business. For example, Toyota became a truly global company by Americanization of its operations. While Toyota has captured ...