Research Paper On Globalization Kaplan Assignment

1086 words - 5 pages

Research on the three benefits and drawbacks of globalization
"Following the light of the sun, we left the old World" - said Columbus, though debatable he ever said it, nonetheless poetic and ever so relevant. In total there are three known phases of globalization. Phase 1, lasted from 1492 until 1800, contracting the world from size big to medium, began with Columbus' voyage, this phase was about globalizing and connecting countries through trading - regulated and controlled by the monarchs and the East India Companies . At this phase, it was a test of a country's ability to innovatively use resources they have to go global. Phase 2, carried on right after Phase 1, from 1800s to 2000 - inevitably intervened by the World Wars and Great Depression, was the globalization of multinational companies, accelerated by the dropping of transportation costs – result of steam engine and rail road, and a century later the rapid development of communication –telegraph, telephones, computers and the early version of internet, with it's subsequent affordability. After this would be phase 3 - still in progress since year 2000, the world as of now is size tiny. This era is about individuals globalizing and gaining the capacity to compete and collaborate as individuals. Through globalization, humans would unceasingly advance as a race, work more efficiently, consume less time. While globalization is inevitable and assuredly beneficial, it is undoubtedly essential to learn how globalization works, including it's flaws – as George Robertson said in 2001: “ Globalization will make our societies more creative and prosperous, but also more vulnerable.". Which explains the premise of this thesis, the exploring of the two extremely recent yet significant benefits of globalization - such as the evolution of global outsourcing and evolution of information and communication technology(ICT), and recognizing the premise and consequences of the European Union(EU).
Right after Phase 2 comes the progress of practicing global outsourcing and it's benefits. As of now outsourcing is not merely a practice exercised by companies to lower costs by shifting parts of work to external suppliers rather than completing it internally. Due to Phase 3 of globalization and it's advances in technology, outsourcing does not have to be from the country where the outsource is needed. Examples can be found in accounting and medicine. India – one of the top countries providing low-cost country sourcing(LCCS) , now offers cheap and efficient accounting and book-keeping. An accounting firm in India is now able to do outsourced accounting work from overseas – most notably United States. According to (Friedman, 2007 , p.13), in 2003 there were 25 000 U.S tax returns done in India, and within two years time the amount had hit sixteen folds . These cheap outsourcing Indian accountants would do the tax/audit preps and book-keeping while the accountants from the outsourced country...

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