Giddens likes to label these people as, those who view globalization as synonymous to the westernization and Americanization.. China is a prime example of a country that has benefited immensely from globalization. It can also be difficult to find and retain managers with the requisite skills to add value to the company and work effectively within the local culture. 8. It's more. Nonetheless, rising levels of protectionism and anti-globalization sentiment in several countries could slow or even reverse the rapid pace of globalization. Much has been written around the environmental benefits of going virtual, yet the jury is still out over whether thiswork modelis a full-proofsustainability enabler. They bring jobs, skills and wealth to the region they are investing or doing business in. The customers have access to the products and services offered by international brands. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. 2. One of the biggest benefits of Globalization is that there is a free movement of goods and services manufactured and offered by the firms on national and international levels. It is the flow of goods, technology, information, services, money, people . They have very similar effects: they raise output in countries, raise productivity, create more jobs, raise wages, and lower prices of products in the world economy. Below, we are sharing reasons as to why Globalization Is Important, to make you well-aware of its importance:if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[336,280],'curiousdesire_com-medrectangle-3','ezslot_7',117,'0','0'])};__ez_fad_position('div-gpt-ad-curiousdesire_com-medrectangle-3-0'); After a thorough research, we have come up with a list of 15 benefits of globalization. March 28, 2021 Admin. Globalization affects businesses in a variety of ways: What are the advantages of globalization for businesses? Write CSS OR LESS and hit save. 2. India has seen an increase in the value of its computer service exports from $11 billion in 1995 to almost $110 billion in 2015. In a parallel universe, global expansion, a policy of economic and territorial expansion, have their own point of view on the matter, one that has an optimistic sense. It fails to value any loss of native language and culture thought to be the result of globalization. It employs as many as four million people, but the average worker earns less in a month than a U.S. worker earns in a day. Globalization has made the world more connected which allows us to work together towards the future by sharing ideas and experiences that will help us overcome any obstacles we might face, regardless of where they come from. This means that companies can offer goods at a lower price to consumers. A modern example of this is American companys outsourcing labour to Mexico and China because labour costs are cheaper in these areas. Some scholars claim that governments are becoming less influential in the face of an increasingly economic world. As a high-income country with a growing, technologically advanced market economy and exceptionally well-educated workforce, Israel is an excellent location for international growth. History shows that our ancestors travel from Africa to other places in search of food and security. According to the report Nature Risk Rising published by the World Economic Forum, $44 trillion of economic value generation - over half the world's total GDP - is moderately or highly dependent on nature. Globalization is manifested in the growth of world trade as a . More open access changes the way products are developed, supply chains are managed and organizations communicate. Plus there are so many opportunities for small as well as big players. World GDP has grown from about $50 trillion in 2000 to about $75 trillion in 2016, primarily as a result of economic . If your company is looking at foreign markets for business expansion, one of the most important questions you need to ask yourself is whether you want to open an overseas branch or a foreign subsidiar. Although technology and culture might change with time, globalization ensures that peoples values will remain the same regardless of such changes since it allows them to grow alongside one another instead of becoming isolated from each other. Though countries may wish to help, too large an influx puts a strain on resources and social structures. Since 2008, the G20 has held an annual summit that brings together heads of state to discuss important economic issues. It is an act that aims to turn the world into a village where different nations and people from all walks of life relate and interact without barriers. The premodern period saw technological advances that allowed trade and communication to flourish. The result is more jobs in countries where jobs are needed, which can have a positive effect on the national economy and result in a higher standard of living. And this way, you can rake higher profits and sales as your target market has expanded and multiplied. Forbes reports that the move toward globalization has led to deindustrialization throughout the United States, which was once home to many more factories and auto plants. scribe. The G-P leadership team weighs in on global hiring trends, HR tech and whats South Korea has always been attractive for companies looking to expand internationally. Though it has become commonplace to say it, its true that the world is getting smaller. Not all the positive effects of globalization take place at the scale of billions and trillions of dollars. Automation speeds up processes and supply chains, giving workforces more flexibility and improving output. As borders between different countries become more permeable, it becomes much easier for citizens of one country to experience other ways of living and visiting different places. How dull would the world be if every country spoke only its language? This development also has the effect of increasing real wages by lowering the cost of living. What are the positives and negatives of Globalization? Basically, when we talk about Globalization, we arent just talking about the trade of goods and exchange of capital, we must realize the various social and cultural opportunities that have been realized with international trade. Learn how companies are rethinking global supply chains to avoid disruption and reap the benefits of globalization. According to the Economic Policy Institute, the U.S. trade deficit with China that is, the amount by which our imports, which tend to cost U.S. jobs, exceed our exports, which tend to provide them has lost the United States 3.4 million jobs since 2001. Together, we aim to promote a more educated future by providing a greater knowledge around the studies of economics and political science. What Is Globalization and Why Is It Important? Wealthy, industrialized countries have shipped their trash to China and Malaysia. Without globalization, it would be very difficult for refugees to flee war-torn countries like modern day Syria and Yemen. Your email address will not be published. Conservation efforts and efforts to combat rising carbon emissions, for example, will require a concentrated global effort if they are to succeed. In a modern, post-pandemic world, individuals, businesses and countries must consider both sides of the globalization issue. This essay is available online and might have been used by another student. With fewer restrictions on trade, globalization creates opportunities to expand. Your email address will not be published. World GDP has grown from about $50 trillion in 2000 to about $75 trillion in 2016, primarily as a result of economic interdependence and the increased global trade it allows. The efficiency, cost- and carbon-saving benefits of remote meetings will change the face of airport travel. Advances in air and fast rail technology have facilitated the movement of people and products. Like it or not, globalization has proven to be a potent force for growth and development, and it is changing the world in ways that have a sweeping, sometimes unpredictable impact. At times, their prices are much more economical in nature. Patriotism is their absolute trait and thats why any foreign influence causes a threat to the society. The importance of Globalization is a phenomenon that involves the free movement of humans among different regions of the world, exchange of information, and open market for businesses. It may be pictured as the threads of an immense spider web formed over millennia, with the number and . Increased trade to larger and more diverse markets results in greater revenues and increased gross domestic product (GDP). Like that time the US-funded Hamid Karzai in Afghanistan back in 2005, he later ended up as a puppet following any strategy the US adopts. I personally believe that these three portions are correct in their own sense. Most Kenyans dont have access to banks or bank accounts, but they can use their phones to send and receive funds, using a text-based app since most mobile phones in the country are not smartphones. Exploiting cheap markets and lax regulations in developing nations has caused pollution and suffering in those countries, even as profits soar abroad. In addition, doctors traveled where they were needed. Copyright 2023 About Curiosity Desire | Privacy Policy | Terms & Conditions | Contact Us. Hardwired proposes that globalization originated from the basic motivation of human beings to seek a better life (Chanda, 2007). Globalization is most often used in an economic context, but it also affects and is affected by politics and culture. User Enrollment in iOS can separate work and personal data on BYOD devices. Its clear that globalization provides an abundance of benefits worldwide but what are the disadvantages of globalization? Globalization Lowers The Costs of Commodities, 6. Trade on the Silk Road played a significant role in the development of South-Asian countries. In todays era that is high on the aspects of social media and online selling, globalization provides all the required impetus. Plus they are also able to charge a premium for their offerings in the native market stating that the firm also caters to the international audience. The internet has increased the sharing and flow of information and knowledge, access to ideas and exchange of culture among people of different countries. Globalization represents an unavoidable phenomenon in the history of mankind, which is making the world smaller and smaller by increasing the exchange of goods, services, information, knowledge . She or he will best know the preferred format. Its easy for people to fear others whom they have never met. Additionally, the rise in urbanization and the closer integration of the world economy have facilitated global interconnectedness. These 10 Countries Have Been Hit Hardest by Food Inflation, Earthquake in Turkey and Syria: How satellites can help rescue efforts, Turkey-Syria earthquakes: A seismologist explains what has happened, These are the main uncertainty drivers around the world, according to the IMF, Hites Ahir, Nicholas Bloom and Davide Furceri. More recently, nationalist political movements have slowed immigration, closed borders and increased trade protectionism. Arguably one of the top advantages of globalization has been the rapid spread of technology worldwide. The midwives, in turn, use their phones to connect to a system that doctors monitor at all hours. Thanks to globalization, its now easier for everyone to visit new places or see what life is like there because you can always find information about them on the Internet or watch international TV channels. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, In a globalised economy, your team must be culturally competent to succeed, What do Renaissance paintings tell us about globalisation, The answer to nationalist fervour isn't less globalism. 3D printing enables digital designs to be sent anywhere and physically printed, making distributed, smaller-scale production near the point of consumption easier. By expanding into new countries, businesses reach markets that are hungry for their novel goods and eager to pay top dollar for them. Though the world gold price quadrupled over 10 years and electronics have become ever cheaper, globalization has not alleviated the poverty and violence in the country. Privacy Policy It is the ability to move and communicate easily with others all over the world in order to conduct business internationally. Globalization has made us more accepting towards Self. Importance of International Business Benefits of International Business, Import and Export: Meaning & Key Difference Between Import and Export, Difference between business markets and consumer markets, 40 Ideas on How to Start a Business in 2020, JioMart launches its Digital-First Holi Campaign targeting Sale from 1st to 8th march, Tata Groups talks over $1 billion Bisleri stake stall, Goodbye Vistara Airlines! Everest Group Names G-P an Industry Leaderin the Employer of Record Market. In general, globalization has been shown to increase the standard of living . In any given specific industry, there are various firms offering similar kinds of products and services. These technologies are enabling the tracking of assets in transit and as they move across borders, making cross-border product management more efficient. The audio, illustrations, photos, and videos are credited beneath the media asset, except for promotional images, which generally link to another page that contains the media credit. At the same time, innovations in information technology enable immediate communication and the rapid transfer of financial assets across national borders. IBM's introduction of the personal computer in 1981 and the subsequent evolution of the modern internet are two examples of technology that helped drive international communication, commerce and globalization. Globalization is the most important trend of global development. With globalization, understanding other peoples culture becomes a lot easier and simpler so it certainly makes sense for people who have no interest in going abroad whatsoever to explore the opportunities that globalization offers them. Text on this page is printable and can be used according to our Terms of Service. So when something has gone global it means that its reach is far and wide. But with the power of globalization, new firms are able to tap the international markets through the facilities of social media and online selling and can enjoy their slice of sales and profits with international customers. 24. The infant mortality rate in Kenya, especially in its slums, is one of thetop 65 in the world, but globalization has provided tools to help address some of the difficulty with pre- and postnatal care. For example, blockchain provides a transparent ledger that centrally records and vets transactions in a way that prevents corruption and breaches. Any change has winners and losers, and the people living in communities that had been dependent on jobs outsourced elsewhere often suffer. At its core globalization is an easing of borders, making them less important as countries become dependent on each other to thrive. What are the theories of Globalisation and their use, Your email address will not be published. Introduction. Hi! Globalization is the process in which people, ideas and goods spread throughout the world, spurring more interaction and integration between the world's cultures, governments and economies . Hence, it is very imperative for firms to understand the Importance of Globalization. National Geographic Society is a 501 (c)(3) organization. The firms . If a media asset is downloadable, a download button appears in the corner of the media viewer. As we know, it is the process through which the world stimulates into a unified network. Those who advocate them usually have hidden agendas, and they often come from developed nations (nations with the greatest effect).
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