Drivers and Consequences of Globalization Essay examples

The purpose of this paper is to analyze three drivers of globalization and how these drivers impact organizations, describe the risks associated with global investing and explain the importance of cultural sensitivity and ethics in global finance. Global Finance Environment Globalization is the increasing interconnectedness of economies, markets, and people across nations. Increasing globalization creates additional competition from around the world, which then affects both local jobs and company profits. Globalization also has the potential to raise standard of living by allowing greater access to a wider range of products and services at more competitive prices (Crum, Brigham, Houston, 2005). One driver of†¦show more content†¦Very few businesses can escape the need to at some point in time deal with foreign colleagues, clients or customers. Business is international and if an organization wants to develop and grow it needs to harness the potential an international stage offers. Twenty years ago British, European and American organizations doing business abroad had very little competition due to the lack of rival industrialized nations. Back then it was easy to do business our way’. Today some of the world’s largest economies include Japan, China, Mexico, Brazil, India and Korea. As a result there has been a small shift from our way to let’s try and understand your way’. Why? Because western organizations are feeling the impact a lack of cultural sensitivity can and does have upon business performance. Culture comes in many shapes and sizes. It includes areas such as politics, history, faith, mentality, behavior and lifestyle. The following examples demonstrate how a lack of cultural sensitivity led to failure. When coloring in 800,000 pixels on a map of India, Microsoft colored eight of them a different shade of green to represent the disputed Kashmiri territory. The difference in greens meant Kashmir was shown as non-Indian, and the product was promptly banned in India. Microsoft was left to recall all 200,000 copies of the offendingShow MoreRelatedThe Second Key Driver Manipulating The Spread Of Globalization894 Words   |  4 PagesThe second key driver manipulating the spread of globalization is technological change. The reductions of international trade and investment barriers made globalization of markets and globalization of production a theoretical possibility; technological change made it a visible reality (Hill, Cronk, Wickramasekera, 2014). Over the years, there has been major technological development. There are three major technological advancements, include microprocessors and telecommunications, the internet andRead MoreCulture Drives Globalization Essay1559 Words   |  7 PagesThe term ‘globalization’ did not come about till the twentieth century however the processes of globalization had been around since the era of imperial domination. â€Å"The controversy surrounding the on-going debates about globalization is whether unfettered market forces will further diverge or converge income the world over. On the one hand, proponents of globalization say it has promoted information exchange, led to a greater understanding of other cultures, raised living standards, increase d purchasingRead MoreThe Impact Of Globalization On Business Activity Communications And Movements Of Individuals Over The National, Political And Geographic Boundaries1401 Words   |  6 Pagesto Hill, there are two main facets of globalization, includes globalization of markets and production (Hill, Cronk, Wickramasekera, 2014). The historically different and distinctive national markets are integrating into a single huge global marketplace in which the perceptions and preferences of customers in different countries are beginning to unite as a single global standard; examples are McDonald’s hamburger (US), IKEA furniture (Sweden). The globalization of production allow firms to locate productsRead MoreHow And Why One Should Reform The Global Economy1245 Words   |  5 PagesHow and Why One Should Reform the Global Economy It was chosen the texts, which are related to the last global economic crises in 2008 and more later analysis of the influence of globalization on national politics of different countries. The first one is a chapter from the book Free fall: America, Free Markets, and the Sinking of the World Economy by Joseph E.Stiglitz, the title of which is The Making of the Crisis. Joseph Stiglitz described the background of the economic crisis in 2008. He startedRead MoreThe United States : A World Leader And Its Responses Will Have Key Consequences1693 Words   |  7 Pagesbecoming more globalized. Globalization came in the form of economic, social, and political pressure on the country. Some of these shifts in policy and world view were brought on by necessity such as the energy crisis of the 1970’s. Others were by choice of policymakers such as Cold War foreign relations and the response to 9/11 and invasion of Iraq. The United States will continue to face global challenges as a world leader and its responses will have key consequences worldwide. Many of the earlyRead MoreMarketing Analysis : Products And Services1616 Words   |  7 Pagesenter into new markets to pursue another business momentum. Based on the preliminary research, Germany will be the most appropriate potential market of Easy Run. According to Power (2008), the impact of certain external factors may have more severe consequences for a business and the PEST-C analysis can identify the threats and assess potential implications (p. 361). The comparison between the US and Germany is listed in Appendix B and summarized below. Both America and Germany have stable politicalRead MoreProblems Associated With Inventory Management1170 Words   |  5 PagesComplexities in Inventory Management Due to the increasing globalization of markets, the level of competition has increased considerably; thus, leading to increased inventory management complexity. Indeed, complexity has several negative consequences including high operation costs, time delay, customer dissatisfaction, inventory shortage, excess inventory, lack of collaboration, cooperation, and integration among supply chain participants (Hudnurkar, Jakhar and Rathod). A supply chain comprises ofRead MorePositive Aspects of Globalization Essay1843 Words   |  8 Pages Introduction During the last decade of the twentieth century, the word ‘globalization’ has become an increasingly prominent feature of political, social, and economic discussion in academic and policymaking circles, as well as in the media. The processes and outcomes of globalization drew attention and debates that had one thing in common. The research shows that nearly everyone agrees that globalization is a trend that is changing the face of the world, and as a result the world society livesRead MoreDeveloping an Annotated Bibliography1642 Words   |  7 Pageson businesses and productivity versus burrowing little creature globalization activists worries over disparity and social ills. By building a center ground between micro and macro examination and illuminating specialized wording, this brief and open book will be a significant reference for all no masters. GLOBALISM VERSUS REGIONALISM the end years of the twentieth century are prominent for the extension and developing of globalization. It basically alludes to the on-going financial, fiscal, innovativeRead MoreLife And Debt And My Readings935 Words   |  4 Pagesfilm Life and Debt and my readings, I have come to the opinion that economic globalization works in favor of powerful and wealthy countries while undermining the interests of poorer, less developed countries to cultivate their own economy and establish a substantial quality of life for their civilians. In the film Life and Debt, this situation is exemplified through Jamaica’s decades-long grapple with economic globalization in their involvement with the IMF, World Bank, and various trade agreements