The Pros and Cons of globalization
Globalization
is a set of relationships that is co-dependent on each other; these
relationships are between people in different locations worldwide that
are divided into nations. As well, these relationships tend to be
expanding. As far as pros and cons are concerned, let’s consider the
following. Nations are able to share in new technology, and firms with
innovative products can do business with a larger costumer base
worldwide. Thus, this would result in increase revenues for those firms.
So too, global competition increases due to consumers’ awareness, and
their ability to purchase new items that were once unreachable. In turn,
by clustering firms gain greater awareness of foreign opportunities.
This means new investments and potential profits (Daniels, Radebaugh,
& Sullivan, 2011).Globalization can also lead to better quality of life for host nations. As well as, good working relationships among the different nations involved is a benefit through sign treaties. But, where there is an upside there is also usually a downside. From this point of view, globalization is said to take away jobs from countries with firms looking for cheaper labor in foreign countries. Wages are, as well, argued to become stagnated as firms outsource jobs. When nations join the globalization expansion they run the risk of losing some economic leadership. Also, the people of a nation who has to worry about losing jobs and therefore economic status become stressful (Daniels, et al., 2011).
Global Forces Driving Globalization
One of the main forces driving globalization is technology; because of new technology, firms can now communicate in real time and even see each other while talking. Technology, also, allows for rapid transport of goods and people worldwide. Thus, many of the good that would have spoiled before reaching its destination in the past can now arrive wholesome. This rapid development in technology, and various innovative developments, has widened the consumer demand base globally (Daniels, et al., 2011).Example of who have Benefited from globalization and who did not
I think that Carnival is the epitome of a company that is truly global. Carnival is a Panamanian company that is listed on the New York Stock Exchange, and has its operating headquarters in Miami. This means that Carnival passengers are mostly from the United States. The Carnival benefits from globalization by not having to pay taxes in its home country nor the United States. The carnival also has access to all nations as its source of customers (Daniels, et al., 2011). Wal-Mart is another firm that has benefited from globalization. There are Wal-Mart Stores in the U.S., Mexico, Canada, Brazil, China, and other south pacific countries that maintain a high profitability. Wal-Mart has also managed to keep its production cost low (Anthony, Kacmar., & Perrewe, 2010).By contrast, city workers in the local police departments do not directly benefit from globalization as far as their job, or pay is concerned. Nor do the fire department, or the regular factory worker. In fact, if you are a worker and not an owner of a major company, chances is you where probably displace from your job. May be it is time to start your own business, just a thought.
References
Daniels, J., Radebaugh, L., & Sullivan, D. (2011). International business: Environments and operations (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
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