The Pros And Cons Of Globalization And Tnc's

Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale. According to economic and political writer Doug Bandow, “Some critics of globalization have contended that the process has helped the rich and hurt the poor. However, the best research indicates that this is accurate: ‘Poverty is falling rapidly in those poor countries that are integrating into the global economy.”. In both documentaries “The True Cost” and “Living on One Dollar” we can see how companies exploit their employees for consumer benefit, as well as the social and economic inequalities that are attached with globalization.

Globalization has a very negative message towards some things, but there is also a lot of positive that comes from it all which overpowers all of the negative. William K Tabb promotes a globalized world. By reducing barriers between countries it will create more world wide interactions and make everyone have a better standard of living. Globalization helps the people who need and will always but a positive impact on people’s way of life.

Globalization is effectively removing the national boundaries for economic purposes. National boundaries are becoming penetrable for goods and capital because of cheap labor. (Shaw, 2016, p.186). Globalization has both advantages and disadvantages. By transferring the domestic manufacturing jobs to foreign countries such as Mexico or in Asia, Americans companies are bringing cheaper consumer goods. It creates the unemployment’s also the foreign employees are getting lower-wages. (Riordan, M., 2016, NY Times).

There is also the question that many pose; are TNCs corrupting local cultures around the world? Montenegro is an example of a country that has banned TNCs such as McDonalds to push back against globalization. They believed that big global companies were dominating their

The International Monetary Fund (IMF) was created in the mid-1940s as a direct result of the chaos created by the individual central banks before and during the Great Depression. With the advent of economic globalization, it became clear that the uncoordinated policies of individual central banks was becoming a hindrance to global growth and financial stability. In December 1944, the IMF formally came into existence with 29 members, each agreeing to cooperate on the international stage to stabilize exchange rates and

Globalization has transformed the world economy over the past years. The spread of ideas and technology across borders has facilitated new avenues of trade, creating new markets and expanding others. However not only has the world benefitted

MNC’s/TNC’s are companies that locate their factories in various places throughout the world. This gives countries more jobs, access to the global market, cheap manufacturing and large profits.

In Source I, the reader is presented with a picture that displays Transnational Companies (TNCs) dressed up as their symbols running out of a schoolhouse while chasing a group of what appears to be terrified students. Above them in the sky, there are planes dropping TV sets and cans of Pepsi. The message that is intended to get across in this source is the negative impacts of economic globalization in the world through the heavy influence of TNCs. This is depicted in many ways, one of them through the TNCs, by looking at their faces one can assume that they have a trick up their sleeve and are in the process of doing something atrocious. They also have their arms wide open which symbolizes that they are open to new consumers and

The worldwide movement toward economic, financial, trade, and communications integration. Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers.

USA, Japan, and France are all members of the IMF, the World Bank, and WTO.

Growth of TNCs is down to geographical flexibility and being able to shift resources and production between locations on a global scale in order to maximise profit margins. For example, Coca Cola Hellenic is leaving Greece; this is so that they don’t lose any more money than they already have done. Athens stock exchange is a lot smaller than it used to be, which has meant the general economic “sickness” in the country depresses prices of all companies there. So, the company is to move its domicile from Greece to Switzerland and the stock listing from Athens to London. This example perfectly summarises how and why TNCs pack up in certain countries and go on to the next - to make profit, which is what all-multinational companies are out to do, “make a buck.” The growth in TNCs is also the idea of shifting to a more flexible production system, like “JIT” production, which stands for Just-In-Time. This type of production is exactly what it says on the tin, an order is placed with the company and only then do they start making the product, this saves time, space and money, as products are not left in warehouses until an order is placed. This allows for products to be made quickly and efficiently.

There is good impact and bad impact of the globalization in our country, let us discuss about the effect of the globalization in my country.

Globalization is simply the process by which people, economies, and governments around the world become increasingly interconnected through the incorporation of economies and societies (Steger, 2010). Examples of major players of the global world include international organizations such as the United Nations and the World Trade Organization (WTO) as well as nongovernmental organizations such as Greenpeace. The international organizations regulate trade between nations by drafting trade agreements and acting as negotiators. Globalization has both advantages and disadvantages. However, the benefits of globalization far outweigh its costs. For instance, Globalization promotes efficiency and productivity, Global institutions manage the settlement of government-to-government disputes and economic gains from globalization have increased access to health care as well as clean water.

The negative effects of globalization come like a fringe with its advantages. As countries companies and consumers are benefitted through globalization process, it is also bringing some disadvantages for them.

People around the world are more connected to each other than ever before. Information and money flow quicker than ever. Products produced in one part of a country are available to the rest of the world. It is much easier for people to travel, communicate and do business internationally. This whole phenomenon has been called globalization. Spurred on in the past by merchants, explorers, colonialists and internationalists, globalization has in more recent times been increasing rapidly due to improvements in communications, information and transport technology. It has also been encouraged by trade liberalization and financial market deregulation.