The Implications Of Globalization

Decent Essays

In today’s global society, it has become difficult to find someone that has not been impacted in any way by Globalization. Some societies will be more or less affected but we cannot deny the idea that Globalization impacts everyone, which resulted in a large number of economists and philosophers writing their own opinion and theories on the subject. Based on this idea, I came up with the following question: What drives a company to globalise and what are the implications? I will tackle the question in this essay by first defining what globalization is, explain why companies become global and what are the implications of globalization on different social classes. My arguments will be backed up with evidence from the following authors: Adam Smith, Branko Milanovic and Harry Braverman. It is difficult to come up with an exact definition of Globalization; however, we could define it as the idea of trying to make the world communities become one by integrating world economies. This ongoing process that contributes in making the world look “smaller” by merging economies, societies and cultures to improve global communication and trade has not only economical impacts but also social and cultural.

Why do companies globalize in the first place?

The main factor for a business to globalize is based on the philosophy of Capitalism, which is the idea to maximise profit and at the same time reduce cost as much as possible. Businesses that globalize have access to the global market,

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