Internationalization: The Suitable Replacement for Globalization

That this was also the decade in which globalization came into full swing is more than a minor inconvenience for its advocates” (Rodrick). If globalization is supposed to present an advantage to developing countries, why have there been so many setbacks? Indeed, both sides will have its winners and losers regardless of which side of the development coin they live on, but for the most part globalization has lifted millions out of poverty, improved the standard of living, and increased life expectancy rates all while keeping developed nations relatively competitive to their developing counterparts. Globalization’s value is that it seeks to create an economic equilibrium in the world, where parties are free from barriers and can benefit from one another through a more efficient allocation of resources. This allows all participating nations to contribute to an integrated economy and where all nations willing to embrace globalization have the potential to benefit. Regardless, the path to successful integration to the global economy has not always been easy. There is contention towards globalization as some argue that it is detrimental to developed nations, while many developing countries that were forced to hastily open up their markets and integrate failed. However, if implemented properly, globalization has proven that it can benefit all parties involved and that the potential gains outweigh the losses.

For individuals in very poor and economically unstable countries, globalization tends to do more harm than good. Through the economic, political and cultural examples stated above, globalization has not aided these countries climb out of poverty, develop an influential government or have a strong cultural identity, in fact, it has done the exact opposite. L’Huillier quotes Charles Darwin, “if the misery of our poor be caused not by the laws of nature, but by out institution, great is our sin” (2017 381). The business model that globalization suggests is an unattainable utopia for those in developing countries. These traits of poverty and war have always existed yet, many of today’s countries are the way they are because of the models that are favored and paraded under globalization

The business internationalise means a company’s production and business activity are not only confined to one country, but also integrate the different countries’ raw material and labour and technologies to

Globalization has been a main culprit of wealth inequality in the United States for many years. Many economists believe that globalization was meant to do the exact opposite of what it is. In theory, globalization should makes goods more easily accessible and stable out our governments, but why isn’t it? After doing some research on the topic I have concluded this. Standards of living in countries, most notably poor countries, should have been raised by globalization, but only certain countries are able to reap the rewards while others suffer. It is fact that there is a positive correlation between inequality in incomes and the production outsourcing processes. The outsourcing causes inequality between skilled workers and the others that are

Globalization has led to a growing gap between those who have access and opportunities by which to thrive and those who do not. There are now 793 billionaires (as of 2009)—representing an essentially unimaginable amount of wealth. At the same time, there are millions of workers laboring in conditions we would likely consider inhumane, and doing so for starvation level wages. And still, there are those who do not even have access to jobs whose conditions are even worse. Globalization can benefit some but leaves other nation further and further behind.

In theory, globalization should help contribute to the equality of the global economy. Yet this is not the case in reality. Globalization contributes to unsustainable prosperity for a very small percentage of the world’s population. For those in developing countries, it is especially unsustainable. The resources in these areas are consumed at an unstable rate and the environment given very little consideration. The workers are treated as if they are expendable. The smaller economies of these countries are vastly taken advantage of. For these reasons, globalization contributes to sustainable prosperity to a small extent.

In the past 20 years’ income inequality has become a major issue in particular within the United States (US) where a significant income gap has occurred. This is exemplified by the US Gini index (GI), a measure of income inequality, which has risen from 43 in 1990 to around 47 in 2010 and is continuing to trend upward (David Moss, 2011). This has now become a problem that both develop and developing nations face. The main causes being globalization and technology. In developed countries globalization has increased cheap foreign imports with technology making importing extremely cost efficient. There’s also the outsourcing or the replacement of low skill jobs with newer technology. These two processes have contributed to higher profits for executives while low skill workers are losing their jobs by the thousands. In developing countries globalization has led to low skill workers having to compete in cheap labor markets dropping their wages even further. Technology in these developing countries has also increased income inequality with their lower class unable even be literate enough to learn newer technology. Therefore, inequality damages economies and workforces on a world scale

Globalization over the past twenty has become an issue in many countries. This industrialization of second and third world countries by Western Civilization creates many opportunities for the inhabitants. Not only does it expand trading markets, but also promotes productivity and efficiency; thus improving the country and integrating it into the industrial world. This process not only benefits third world counties, but also industrialized nations by allowing them to export goods to the developing world and increase their profit margin.

These happenings promote growth and help to build relationships with other countries. I see it as a way to help each other out. The reason why firms engage in International business is because they have a need that they cannot provide themselves. To fulfill these needs, firms use international business to compensate for low resources, to save and make more money, and to grow and expand their business. For example, Starbucks started as a stand-alone company, and then they expanded within in the U.S, and then eventually went international. Starbucks decision to do international business has expanded their brand; as a result, they have become the most recognizable coffee brand in the world. International business is important because it influences growth of a business; it creates partnerships with many different countries, and most likely increases profits. If a business wants to reach the maximum success, participating in international business is a great

Globalization is far reaching in this day and age. Globalization is the worldwide flow of goods, services, money, people, information, and culture. It leads to a greater interdependence and mutual awareness among the people of the world (Tischler, 2011, 2007, p. 430). One non-Western culture that has been impacted by globalization is China. An example of the impact of globalization on China is their economy. Since joining the World Trade Organization, China has transformed from a culture that relied on economic self-sufficiency and shunned the thought of globalization to an economy that is progressively more open to trade and foreign investment.

Supporters of globalization argue that it has the potential to make this world a better place to live in and solve some of the deep-seated problems like unemployment and poverty. But the opponents general complaint about globalization is that it has made the rich richer while making the non-rich poorer. “It is wonderful for managers, owners and investors, but hell on workers and nature.”

There are many ways to look at and understand modern globalization. In general terms, globalization means that the world, as a whole, is leading to a more utopian society, meaning that the globe is become very interconnected and similarities are growing between different regions and cultures of the world. Globalization is a phenomenon that has been evolving since before 10,000 B.C. This constant evolution can cause many problems, but it can also solve many issues positively as well. Development of any country, however, seems to be a key issue when discussing globalization. Globalization and development present two different factors in the world today. Many countries are lacking in their own development while the world around them is becoming more developed and globalized. Globalization hinders development because with globalization, less developed countries depend on more developed countries to help them to sustainability and self-reliance.

Globalization can be seen as a major threat for manufacturing jobs in the developed world, however, can also be a benefit for developing world citizens who receive thousands of jobs a year although they don’t receive a high salary. Maurice Allais, a French economist states that this unemployment, of course, has only been able to develop because of the existence of low salaries and insufficient flexibility in the labor market (April 10th, 1999). This indicates that globalization has jeopardized Western countries jobs because companies are moving their establishments to developing countries where they don’t need to pay employees as much and where land is cheaper so overall businesses benefit from this. Also, employees in the developed world are at risk of becoming redundant as they are susceptible to face pay cuts in jobs. Employees are less skilled in the developing world as they don’t receive the benefit of an education like developed countries do. So a company may want to build factories in these countries because environmental laws aren’t as strict. Establishments in these areas provides promising jobs for the local people and allows them to learn new skills, however they are set on minimum wage which in developed world countries, this would not be enough to live on, wherein third world countries this is still a low amount so this is not enough to bring them out of poverty meaning that the only one who benefits from this is the company. Although there have been several arguments against exploitation and oppression, the majority of developing countries do not have existing laws which take minimum wage

“Globalization is not just one impact of the new technologies that are reshaping the economies of the third millennium” (Thurow 19-31). When speaking of globalization, most people will not have a complete understanding as of what it actually means or what aspects of the world it affects. Globalization promotes free trade and creates jobs. The capital markets attract investors, resort cheap labor, and leads to job losses in some areas of higher wage. While all of this is happening, the world economy is being effected: economically, culturally, socially, and politically.

Today, almost all of us are aware that our lives are being shaped by an interconnected world economy of cross-border flows of trade, finance and technology. In our hearts, we know that there is no going back.”