Name for the process of increasing the connectivity and interdependence of the world's markets and businesses. This process has speeded up dramatically in the last two decades as technological advances make it easier for people to travel, communicate, and do business internationally. Two major recent driving forces are advances in telecommunications infrastructure and the rise of the internet. In general, as economies become more connected to other economies, they have increased opportunity but also increased competition. Thus, as globalization becomes a more and more common feature of world economics, powerful pro-globalization and anti-globalization lobbies have arisen.
Globalization is deeply controversial, however. Proponents of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of ...view middle of the document...
It is allowing access to technology in developing countries.
It promotes world peace.
It has benefited women and children's rights.
It raises life expectancy.
Globalization puts both positive and negative impact on business as the world state of affairs always presupposes two sides of a coin. Those who have already felt the influence of globalization on their business can make judgments whether it is a favorable process or a detrimental one.
The major advantages of business globalization are viewed through the prism of two aspects: increase of market and foreign currency. No one will deny the fact that globalization processes stimulate the development of business potential in any corner of the world. With the opportunities globalization give it is possible to improve one’s own performance due to the help of other affiliate companies in other part of the world.
Secondly, globalization allowed the boosting of business in comparatively undeveloped areas and countries with poor economic and political conditions. Besides, the flow of capital, which goes to those regions from the home companies, substantially ameliorates the general situation in the local markets.
The major disadvantages of globalization are seen in three aspects: recession impact, unequal payments and shift in employment. If the country of home business suffers from recession or major economic issues, its affiliate companies in other countries will be affected either. The most disapproving thing in globalization is unequal distribution of wages between the subordinates in different countries. In one country the wages might be higher and in the other country the wages are lower, although the spectrum of work is analogous.
Finally, business globalization means that an employer can hire people from any country of his choice. Rather frequently they employ the so-called cheap working class’ ready to work for low wages. The consequence is that people from the country where the home company is located suffer from unemployment while other economies grow.