Free «Advantages of Globalization» Essay
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Globalization is often defined as technological and socio-economic growth and expansion of firms to markets overseas or beyond the borders whilst developing strong business relations and integrations to compete effectively in the international markets. Most small and medium size enterprises often contemplate the prospects of globalization and take very strategic steps and action plans in regards to the same (Sirkin).
In further exploration of the term globalization, it is imperative to have a critical understanding of the level of impacts that it has on the business world especially on the economies of small and medium sized enterprises. As a matter of general analysis it can be said that globalization poses a myriad effects which have both positive and negative implications but ones that if properly managed can take a small enterprise or a medium sized firm to greater heights in the world of business, money and market economies.
Globalization draws its roots from the late 1980s. During those days, new nations were engaging into manufacturing, which was in a number of ways was the weakest linkage in the United States.
Fast globalization started after the collapse of Communism. One of the major reasons for globalization was open market and free market. The adjustment that schedule that was set in 80s made most of the Third World nations that previously had protectionist financial system to engage themselves with trade and foreign investment. This caused not merely financial globalization but also cultural and political globalization (Rodrik, 1997).
One of the major causes of globalization usually varies between the three main components of intercontinental market integration. IT revolution (information technology) has made it extremely trickyfor governments to manage the movement of cross-border capital, eventhough they have political inducement to do so. Due to the benefits of macroeconomic, the governments have chosen not to limit the multinationalization of production. This has increasingly led to globalization.
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There are numerous advantages of globalization and they include; people believe that globalization augments the financial prosperity and chances in most of the developing world. The civil rights are improved and there is a more proficient utilization of resources. All nations that are in the free trade usually generate a lot of profit. Consequently, there are lesser prices, lot of employment and improved standard of living in these developing countries Nevertheless; such worries are useless as globalization is a positive-sum opportunity in which technologies and skills allows augmenting the living standards all over the planet. Liberals sees globalization as a resourceful object to get rid of poverty and permit deprived people a firm foothold in the worldwide economy. The number of people living on a dollar or less per day reduced from 1.6 billion to 1.2 billion from 1982 to 2002. At the same time, the population of the world as well augmented. Therefore, the percentage of such people reduced from 42percent to 22percent in such developing nations.
When small and medium sized firms go global they are able to access and reach out to different markets and consumers for each of their product brands thereby giving them a larger market segment to target. In this sense the firms are in a good position to package their products and services to meet the different needs of clientele base whilst still working on a lower production cost to maximize company profitability. This would however require a proper and comprehensive market analysis and being a breast in relation to the marketing environment so as to be able to meet specific customer needs through provision of higher service quality.
Globalization allows goods and people to be transported from one place to another with more easiness and speed. Trade allows good to be transported from country to country as people move to do business.
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Due to the marketing that is done overseas and beyond the borders, allows countries to be in good terms thus decreasing the possibility of war between the urbanized nations. Globalization has also increased free trade between countries. People are moving from one country to another without any limitation to do business.
Globalization assist break the regressive traditions accountable for distinguishing against people on the basis of sex, race, or spiritual beliefs. It is a solution to the intolerant fundamentalism that oppresses millions of people in the world who are deprived.
Globalization has quickly enhanced the communal and financial status of women in most of the developing countries. In most of the competitive, globalized nations, the responsibilities of women become continually more valuable. All the Cultures that keep out women from full involvement (e.g., Saudi Arabia and Muslim women who cannot carry out some chore as they are believed to be men chores) fall ever more behind.
Due to globalization there is advancement in medical care, improved public health rules, and larger food supplies which have lowered child death and prolonged life expectation. In developing nations in the 1960s, 179 kids per each 1000 live delivery died before getting their first anniversary. By the late 1980s, the baby death rate in these nations had reduced to 65 per 1000. Life expectation augmented from 45 years in 1970 to 58 years in 1998.
Companies that go global also have an upper hand in accessing international funding and corporate sponsorships on projects. This therefore gives the firms the opportunity to expand their operations and make their products and services accessible to a larger market base thereby increasing their production capacity
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Companies that go global have an upper hand in accessing international funding and corporate sponsorships on projects. This therefore gives the firms the opportunity to expand their operations and make their products and services accessible to a larger market base thereby increasing their production capacity.
The companies which embrace globalization always have access to state of the art information technology and systems by virtue of doing business overseas. This is because of the already existing infrastructure in information and communication technology that enable the operations of the business become effective, efficient and one of high quality standards. Such state of the art technologies include but not limited to wireless internet access, access to communication via satellites, use of wireless phones, and undersea water cables.
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People become connected to each other all over the world than they were before. Information and currency circulates faster than ever. Goods manufactured in one region of a nation are obtainable to the rest of the globe. It becomes easier for inhabitants to travel form one country to another, converse and do business worldwide.
Globalization provides a higher standard of living for citizens in wealthy nations and eliminates poverty. Pro-globalization organizations for instance WTO (World Trade Organization) and WEF (World Economic Forum) consider globalization as a mean of reducing poverty and augmenting living standards plus promoting a better cultural understanding. In addition, because of globalization, there can be global co-operation to resolve ecological and social troubles.
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Technology has now formed the opportunity and also the possibility of a worldwide culture. The satellites, fax equipment and Internet have brushed off the old public cultural borders. Worldwide entertainment corporations appear to shape the dreams of normal residents, everywhere they live. Globalization has lead to better cultural understanding and acceptance. Development in travel has enabled people to travel to disparate nations, thus dispersing their culture to other region of the world.
In conclusion, there are various advantages of globalization and have brought a great impact to the world we are living today. Due to globalization a lot have change and people are enjoying the benefits of globalization.