Question

What are the major impacts (positive and negative) of globalization in relation to global business, cultures, ethics and societies?

Answer 1

Answer:

Globalization has brought advantages in developed countries additionally as negative effects. The positive effects embrace a variety of things that are education, trade, technology, competition, investments and capital flows, employment, culture, and organization structure.

POSITIVE EFFECTS

It would be rather troublesome to debate the extent of the positives that the economic process has had on the planet at massive. But still, here are a number of the positive effects of economic process and therefore the positive impacts they need had on such a lot of demographic segments of society.

Global market.

Most triple-crown rising markets in developed countries are a result of the privatization of state-owned industries. So as for these industries to extend shopper demand several of them try to expand and extend their worth chain to a global level. The impact of the economic process on business management is seen by the increase in the variety of transactions across the borders. In protective yields and maintaining aggressiveness, businesses are continued to develop a large variety of their footprint because it lowers the price and enjoys economies of scale (Shah A., 2009)

Multinational companies are results of the economic process. They occupy a central role among the method of the economic process as proven through international foreign direct investment inflows. Their concentrations among Europe in western economies has LED to size constraints, so there's a desire for brand new geographical areas to work whereby they're going to face loads of competition within the market. Through this they're going to enlarge their market and luxuriate in economies of scale as economic process facilitates time area compression, economies vie in any respect levels as well as that of attracting investors (Smith V.A and Omar M.,2005).

Cross-cultural management

Globalization tends to be the realm of the elite as a result of in several components of the planet they are the sole folks that are affluent enough to shop for several of the merchandise on the market within the international marketplace. Extremely educated and moneyed folks from completely different backgrounds act among a westernized environment. Western designs, since are symbols of wealth and power, the elite typically embraces western forms of merchandise and pattern of behavior so as to impress others. Nowadays Western civilization and patterns of behavior and language are staples of international business (Asgary N. and Walle A.H., 2002).

Foreign trade

Globalization has created and distended foreign trade on the planet. Things that were solely found in developed countries will currently be found in different countries across the planet. Folks will currently get no matter what they require and from any country. Through these developed countries will export their product to different countries. Countries do business through international trade, whereby they import and export products across the world. These countries that export products get comparative blessings. Organizations are established with a read to regulate and regulate the trade activities of the countries within the world therefore to possess honest trade. World trade organizations emerged as a robust alignment capable effectively influencing individual governments to follow international trade rules, copyrights, and policies on subsidies, taxes and tariffs. Nations cannot break rules while not facing economic consequences (Piaseck R. and Wolnicki M., 2004).

Foreign investment

One of the foremost visible positive effects of the economic process in India is that the flow of foreign capital. loads of corporations have directly endowed in India, by beginning production units in India, however, what we tend to conjointly have to be compelled to see is that the quantity of Foreign Investment flow that flows into the developing countries. Indian corporations that are acting well, each in India and off the shores, can attract loads of foreign investment, and therefore pushes up the reserve of exchange on the market in India. This can be conjointly one amongst the positive effects of the economic process in America and different developed countries as developing countries provide them an honest investment proposition.

Competition

One of the foremost visible positive effects of the economic process is that the improved quality of merchandise because of global competition. Client service and therefore the ‘customer is that the king’ approaches to production have LED to improved quality of merchandise and services. Because the domestic corporations have to be compelled to fight out foreign competition, they're compelled to lift their standards and client satisfaction levels so as to survive within the market. Besides, once a world complete enters a replacement country, it comes in riding on some goodwill, that it's to measure up to. This creates competition within the market and a survival of the fittest state of affairs.

Culture

The positive effects of the economic process on culture are many! Not all smart practices were born in one civilization. The planet that we tend to board nowadays may be a result of many cultures returning along. Folks of 1 culture, if receptive, tend to ascertain the failings in their culture and obtain the culture that is a lot of corrector in tune with the days. Societies became larger as they need welcome folks of different civilizations and backgrounds and created an entirely new culture of their own. Preparation designs, languages and customs have unfolded all because of the economic process. Constant may be aforementioned concerning movies, musical designs and different art forms. They too have enraptured from one country to a different, deed a control on a culture that has adopted them.

NEGATIVE EFFECTS

Globalization even has its aspect effects on the developed nations. These embraces some factors that are job insecurity, fluctuation in costs, terrorism, fluctuation in currency, capital flows so on.

JOBS INSECURITY.

In developed countries, folks have job insecurity. Folks are losing their jobs. Developed nations have outsourced producing and white-collar jobs. Meaningless jobs for his or her folks. This can be a result of the production work is outsourced to countries wherever the prices of producing product and wages are below in their countries. They need to be outsourced to developing countries like China and India. The general public like accountants, programmers, editors and scientists has lost jobs because of outsourcing to cheaper locations like India.

Globalization has a junction rectifier to the exploitation of labor. Safety standards are unheeded to supply a low-cost product. “In observe, however, the recent expertise in the geographical area has been that a lot of such open-handed multinationals affected their operations to, for instance, China or South East Asia due to price and market considerations”(Piasecki R. and Wolnicki M., 2004).

FLUCTUATION IN costs.      

Globalization has a junction rectifier to fluctuation in worth. thanks to increasing in competition, developed countries are forced to lower down their costs for his or her product, this can be as a result of alternative countries like China manufacture product at a lower price that produces a product to be cheaper than those made in developed countries. So, so as for the developed countries to take care of their customers they're forced to cut back the costs of their product. This can be a drawback to them as a result of it reduces the power to sustain welfare in their countries.