THUSDAY 4 SEPTEMBER

final essay writing

In recent years the term globalization has become very popular. Government policy makers, leaders of political parties, business man, mass media and normal people are all talking about the impact of globalization and how it changed our lives. But what does it mean? Globalization is “the process of transformation of local or regional things or phenomena into global ones.”(Sheila L. 2004) In business area, as Friedman (2008) claims that ,“the pace of globalization is quickening and will continue to have a growing impact on business organization and practice.” Although there are a number of claimants that globalization is a new process that developed counties colonize developing counties, everybody has to admit it brings a lot of benefits, especially in business area. This essay will look at the both negative and positive aspects of globalization, how it influences the business and why generally it has improved business development, and then particularly consider how far it impacts on my subject –International Business. Globalization accompanied with controversies when it was born. George Monbiot (2008) argues that “the world's hungriest are the losers as an old colonialism returns to govern relations between wealthy and poor nations by globalization.” Globalization is dominated by the developed countries with economic and technological advantages, they use modern technology to dominate the world market, make rules of the game. As a result, developed countries continue to accumulate wealth but poverty in developing countries is increasing, which make the world a more uneven economic development and more serious gap. Globalization fails to help the poorest. In spite of the fact that there may be several disadvantages to globalization, the advantages are more obvious. First of all, with the significant progress of globalization, the investments of developed countries have rushed into developing countries, which bring the great benefits to the latter. For example, in China, the most advanced provinces are coastal provinces, and there are a lot of international companies, which improve local economic status and make the local people have better life than before. Thanks to the huge sums of foreign investment flows into Shanghai, in the last 15 years, it has been transformed into a spectacular city of 21 million people, with much more high buildings than New York, and its public transport system that will soon overtake London's in size. Secondly, the great developments of globalization lead to the flourish of the local industry, which can supply plenty of working opportunity to the developing countries. In the process of globalization local governments and companies have to change in response to globalization of the international economic situation. For example China has been adjusting the economic structure. In particular the development of the situation is to meet the requirements of globalization of financial, insurance, travel, pension services and other social sectors and departments have been rapidly to the market and privatization. These changes will, of course, increase working opportunities, including employment and entrepreneurial opportunities. Thirdly, people can choose more kinds of products and get something cheaper. If you go into a British home, you can find there are German furniture, Japanese household electrical appliances, small commodities that made in China and foods which flown in from every country in the world. In developing counties, with the progress of the globalization, high technological products make the local people’s life more convenient than before. Finally, globalization has brought the new ways of doing business, which contains both new business ideas and business rules. It also compelled the local companies to enhance their product standard to satisfy the equipments of international standard. Globalization has also improved international business a lot. International business is a subject which was born with globalization and a great extent affected by it. Usually it often means the business activities which are processed by multinational companies. In recent years, the domestic market has developed near to saturation in West countries, more and more companies seek for profits from oversea markets. At the same time, the open policies in some developing counties provide convenience for them do international business. In order to produce a good quality commodity with a competitive price, multinational companies prefer to countries where they can find low labors-costs, firmly political environment and enough resources. With the same products, the labor force in Africa is extremely much cheaper than in United Kingdom. As a result, a large number of multinational companies not only invest in developing countries but also built oversea branches direct do international business in them. In consequence, some developing countries such as China, India have become emergent economies with a very strong growth and prospective markets for investors. Globalization brings the trade liberalization which provides an opportunity for multinational companies carry on their international business. Nowadays companies from the western countries would be easily trades with people in other parts of the words. Thank to the trade liberalization which reduces the limitations on national boundaries around the world. It is not only beneficial to multinational companies-they do international business and earn the profits, but also improve the local economic development. A recently economic policy report show that “Agricultural liberalization is the key for poverty reduction constituting 28% of GDP in low-income countries and 2% in industrialized countries – but both developed and developing countries must liberalize." Even though, the benefits of trade liberalization have been contributed to many countries but some suggest that each countries might be attempt to ensure that domestic industries are protected from competition from foreign producers. Johann Hari(2008) comparison domestic industries to the children ,they also need education and learn skill “Before a country pushes its infant industries on to the world market, it needs to do just that. ” In conclusion, globalization is a double-edged sword, there are some negative effects, and however positive effects are more obvious, especially in business area. Globalization has significant influence to international business; it makes multinational companies develop oversea markets and brings the trade liberalization which provides an opportunity to carry on international business. With the development of globalization, further works needs to be done to avoid the clash between international business and local industries.