The Globalization Of The Economy

Based on Sparke’s textbook, Globalization can be defined as “the extension, acceleration, and intensification of consequential worldwide global interconnections.” This is what he refers to as “little g” globalization. These global interconnections reveal the ties and tensions of globalization. There is also “big G” globalization which is what Sparke calls using globalization as a buzzword in a political context. A big part of globalization is commodities and commodity chains. A commodity can be simply defined as anything that is bought or sold while a commodity chain is the production process that produces these commodities. Understanding commodities and commodity chains is important to be able to understand globalization. One example of how commodities demonstrate globalization is outsourcing and offshoring. By doing this, companies bring their companies overseas which means that they are interconnected with other parts of the world. Understanding commodity chains can also allow you to understand the ties and tensions. I decided to focus on the apparel industry and the commodity of a piece of clothing. This commodity shows some of the tensions related to labor, like constantly searching for the cheapest labor, and tensions related to the environment, like pollution from the clothing industry. A piece of clothing also shows ties through, for instance, in which countries clothes are produced and to which countries they are being exported to. The article "Indian Textile and

As George Soros, the Chairman of Soros Fund Management said: "I think there 's a lot of merit in an international economy and global markets, but they 're not sufficient because markets don 't look after social needs" (2000). Globalization allows businesses to grow due to the elimination of stringent trade restrictions and tariffs. Globalization also allows undeveloped nations the opportunity to flourish by creating jobs that were previously unavailable. As Lechner states in his Globalization Debates - Good vs. Bad, those in opposition believe that globalization is dangerous due to the “...inequities of oppressive global capitalism” (2000-2001). So, what are the upsides and downsides to globalization?

The economic globalization of any given county is the increase of economic integration of the nation in the world’s economy and is the result of cross-border movement of goods, services, technologies and capital. Economic globalization has been seen to help developing countries arrive at a more stable and stronger economic because of its positive effects on crucial issues such as GDP, and their trade as well as their special interactions with different countries, such as the joining of the European Union. France was no exception to this. France in the post-war era after World War II saw significant change with their economy, becoming a more open country in the world markets and a stronger, financially stable country.

The Chinese are an emerging economy that has taken over the world's production in recent years. In fact China is now considered to be the world's factory, as all the major players in the world outsource all or some of their manufacturing activities to the country. All this would not have been possible without the help of technology and with the state of globalization being such, that logistics and distances are becoming shorter and shorter.

Another challenge is that despite the ability to manufacture products cheaper in China, there is a flip side to this situation and that is that sometimes, that “made in America” sign on the back of a product could mean more than the few dollars more it costs to buy that product. Some Americans, in their spirit of patriotism, care more about supporting the American economy than saving a little bit here and there buying products that were manufactured outside of the United States. Balancing the stigma sometimes associated with making a product in a foreign country with the lower costs that usually comes along with that is important in doing business in China as well.

Outsourcing can be a good business strategy because it can expand efficiency, reduce operational costs, upsurge productivity, speed up product development, and likewise allow companies to focus on their core capabilities. (Mourdoukoutas, 2011).

Globalization occurs in three forms: political globalization, cultural globalization, and economic globalization. All forms work together to expand relationships and create a single place. On its own Economic globalization is a way for economic relations to extend and integrate across the world. Economic globalization and its policies as well as, the ideology of neoliberalism have a way of creating an inequality between countries and creates an endless debt cycle. International economic organizations have caused long-term effects due to the harsh conditions these organizations impose. A prime example of this effect can be seen in countries such as Jamaica. It is important to understand neoliberal policies and economic organizations in order to understand how debt still plays a role in today’s globalized economy.

As international business cannot make profit in a new market if remained unchanged in this wave of fast-changing globalization, localization helps them adapt to their new international markets and effectively gain the most out of this process. If localizing in the era of globalization is so helpful, why can’t countries as a whole also learn from it to better adapt to the macro-environment of economic globalization? Glocalization, as stated by sociologist Roland Robertson, “the simultaneity – the co-presence – of both universalizing and particularizing tendencies,” can be applied beyond business to reduce existing income inequalities in the world caused by disparity among countries’ development. To promote glocalization, local government should understand its country’s internal factors so that it can enact changes to its infrastructure to adapt to economic globalization and solve accompanying challenges such as increased income inequality within the country.

In the current business world, cutting costs and allocating resources with the best quality is one of the most widespread and familiar concepts to many business owners. To achieve proper efficiency and effectiveness, outsourcing seems to be common among different types of businesses, not just ones with larger amounts of profit or total assets. Seeking outside help through various countries is one of the key factors that can assist with the potential reputation of a business because cheap labor and satisfactory quality push for better organizational structures. Benefits such as these have evolved into becoming the norm for companies to follow; in Chapter 6 of Contemporary Management, global outsourcing demonstrates a positive effect on businesses and ties into the notion of globalization, which can connect individuals through overseas market strategies.

When we think of globalization historically, should we apply it within the frame works of archaic, proto and modern? A. G. Hopkins who wrote Globalization in World History tends to think we should. He defines archaic globalization as before to the industrious revolution and the creation of the modern state prior to 1500. For Hopkins, this time period planted the seeds of what would become the proto period. In proto-globalization, from 1500-1800, arose the beginnings of the state and the dilation of the global economic system by increased efficiency in revenue exploitation and the revolution of military fiscalism. Lastly, modern-globalization began to emerge in the mid 1800s to the mid 1900s. What defined this period separately from proto global periods was the ascent of the nation state and the aggrandizement of industrialization.

Outsourcing is an Operations management tool that is being used more and more by organisations in the effort to seek and maintain competitive advantage. Discuss the history of and reasons for using outsourcing the advantages risks and how you would mitigate those risk using examples of success and failure to illustrate your answer.

With the development of science and technology as well as transportation, economic and trade globalization in gradually, most companies are not satisfied with the domestic market, and began to open up markets in other countries, which is the origin of multinational enterprises. However, since the environment of the market is different from the host country, such as natural conditions, socio-cultural, or customer needs, which is particularly difficult to deal with the situation when to enter the market of a country, it will need to face the corresponding political risk. Political risk is a type of foreign exchange risk, thence, a prerequisite of political risk and foreign exchange risk of the occurrence of a prerequisite is the same, namely businesses or investors must hold foreign direct investment (Foreign Direct Investment), otherwise, there would not be political risks (Jensen, 2003). Therefore, for multinational enterprises, the economic benefit was on the most important position, and even beyond the political relations such as social system, human ideology, or challenge the traditional, however, for the country to say that in terms of national security goals happen with the economic interests if they have conflicting objective, the state will first meet the security objective, it would be more stressful for multinational enterprises in political risk.

The globalization of the World economy has inspired companies to expand abroad to acquire competitive advantage (Longnecker, 2004). In light of this expansion, companies send their employees to foreign countries on assignments. The challenge that comes with this kind of transfer revolves around the employee 's willingness to uproot their lives and relocate to a new state (Longnecker, 2004). As a result, companies are now developing attractive compensation packages to motivate the employees to accept these assignments (Longnecker, 2004). This paper will analyze the concept of expatriate compensation while highlighting the dynamics involved in developing one.

The trend towards globalization has greatly increased the need for strong interorganizational relationships to ensure a firm's growth and survival. As globalization has placed firms under ever greater competitive stresses, companies are forced to become as efficient as possible in all aspects of their business. One concept that has gained popularity is that of core competency: those things that a firm does especially well and that give it competitive advantage. When firms stray from their core competencies, problems often result. To allow companies to focus on their core competencies, outsourcing has gained in popularity.

Economic globalization has become the most important feature and a general trend of present world economic development. Globalization is a phenomenon and also a process of development of mankind and human society (Hamilton, 2008). It is the essential feature of the modern age. Globalization is the cross-border flows of capital and goods, including capital, labour, technology and natural resources (Bożyk, Misala & Puławski, 2002). Economic globalization is a historical process, and the germination of it could date back to the 16th century. After the industrial revolution, capitalist commodity economy, modern industry and transportation have been developing rapidly. The world market was fast expanded and the foreign trade was