Explain globalization. Include the pros and cons of globalization and provide examples to support what you identify as pros and cons.
Globalization can best be defined as the shrinking of our world. As technology advances the gaps between Countries is closed, and our society as a whole becomes more integrated. Globalization is something that has been occurring for thousands of years, with one early example of Globalization being the use of the Silk Road, which connected China and Europe during the Middle Ages. Globalization can offer businesses many was to increase business, while at the same time threatening them (Globalization101.org, 2014).
Globalization offers industries many ways ...view middle of the document...
Since businesses can find cheaper labor in emerging markets, the businesses domestic employees see lower job availabilities. This is currently the case in the United States with businesses like Apple exporting jobs overseas to China for increased profits. Employees can also lose their comparative advantage in situations like this because the newer, advanced factories are transferred to the overseas market where they are cheaper to operate. If businesses don’t export jobs overseas, they need to find new ways to remain competitive in the global markets. This can come in the form of pay cuts for employees, which also harms the economy since there is less disposable income (businessweek.com). Again Mourdoukoutas (2011) offers his support by stating globalization can lead communities to escape the unemployment trap by devaluating currency and raising trade barriers. China currently employs the currency devaluating tactic to maintain their edge in American markets. This makes American products more expensive to obtain in China, as opposed to their inferior, cheaper products. This causes American based businesses to seek new creative ways to lower production costs to remain competitive in Chinese markets.
Globalization is something that has been occurring since early in the history of entrepreneurs, and something that will not be going away anytime soon. Businesses can enjoy many benefits from globalization that include an increased audience to market their products to, and quicker sharing of innovative ideas. The advantages of globalization are just as much a disadvantage. The increase in competition between domestic and foreign business has lead to a decrease in employment and an increase in outsourcing. Businesses need to continue to find ways to remain competitive, while remaining true to the host country and its work force.
Mourdoukoutas, P. (2011). The Good, The Bad, and The Ugly Side of Globalization. Retrieved from: http://www.forbes.com/sites/panosmourdoukoutas/2011/09/10/the-good-the-bad-and-the-ugly-side-of-globalization/
The Pros and Cons of Globalization. Retrieved from: http://www.businessweek.com/2000/00_17/b3678003.htm
Identify and explain two of the challenges of globalization for the 21st century?
Globalization has helped Countries, and businesses, of the world become more interconnected. Increases in technology that allow the free flow of ideas, capitol, and communications have helped businesses achieve more productivity and faster innovations for less money. This has also given rise to some unique situations that need to be dealt with going forward. Businesses need to go to great lengths to ensure their intellectual property remains their own, and that the labor force reaps some of the benefits as well.
With the increase in communications between businesses, and the internet allow access to virtually anything they wish to learn about, businesses need to make sure they safe guard their products. One country...