Globalization has affected every aspect of the business community in one way or another. Globalization in a simple sense is a business’s movement from one country to another. This is done for a number of reasons; amount of readily available resources, labor market, increased number of customers, and to ultimately become more profitable. There is a decisive advantage for a business to move overseas, but there are a number of drawbacks globalization creates on the local economy. When businesses become an international entity the home country experiences increased unemployment rates, the human resource department now has to manage across borders, prices of goods fluctuate, and forcing wages to decrease for unskilled workers and increase for skilled ones. To protect businesses and employees from unfair practices, various organizations have been created to enforce the policies set forth. Both international government organizations and non-governmental organizations play a vital role in enforcing the policies. It has been difficult to maintain a coordinated effort between developed and underdeveloped in terms of labor laws and tax incentives. Businesses will often seek out the locations where they can benefit the most.
Globalization is a term which holds a multitude of meanings. It has been defined as a phenomenon which has enabled individuals and businesses to seamlessly interact with each other without borders. Globalization displays increasing trade and investment following the disappearance barriers and the interdependence between states (Galateanu, 2012). Even though an agreed upon definition is difficult to obtain, globalization is the process which expands businesses across borders. It integrates the societies and cultures of many global regions into a single network of commerce. Globalization has allowed the expansion of many companies and businesses into remote regions of the world to take advantage of the various resources they contain. The idea behind globalization is to increase the profits of the business. In many cases globalization has allowed various companies to lower their operating costs by employing a cheaper labor force, locating less costly materials, and taking advantage of less strict policies.
Many individuals correlate the term globalization with the recent expansion of many United States based companies to overseas locations. Globalization has actually been occurring for many hundreds of years. Looking back to the first explorers, they can be defined as the ones who started the movement. The world has been witnessing a globalization process at least for the last four centuries (Ates, 2008). Globalization still remains to be a phenomenon which nobody can agree on a clear definition. It has been responded to as a movement from one country to the next, an expansion into a foreign region to reap the benefits of untapped resources, or merely a location which offers a broader range of...