Globalization is the term used for the process of growing the interdependence, productivity and connectivity of the businesses and markets of the world. Globalization over the last few decades has grown tremendously due to advancements in technology which have made it easier for people to communicate, travel and carry out businesses internationally. Globalization can take three forms; political globalization, social globalization and economic globalization. Political globalization refers to increasing international relations which makes diplomacy between countries important. Social globalization majorly entails closer connection between people. Economic globalization, which is the topic of the day, is a better means of increasing productivity thanks to faster means of communication and transport.
Tracing or identifying the starting point of globalization is quite difficult. Globalization occurred and commenced as soon as man was able to migrate of from one continent to another. This movement led to exchange of cultural practices. The process of globalization started to have a highly noted effect on the economies around 1980, thirty years ago. The more countries globalize, the more the citizens of those countries benefit by gaining access to a wider variety of goods, service, better paying jobs, lower prices, better paying jobs and better living standards. The term globalization became more noticed in the 1980s, due to advances in technology which made completing international transactions easier and faster. In the past thirty years, the percentage of the value of trade around the world increased from 42 percent to 62 percent, foreign investments increased from 7 percent to 32 percent and the number of foreign workers has increased from 78 million to 190 million.
Globalization has had positive and negative results. On the positive side, it has led to transfer of technology; it has also increased the demand for development of land, development of related industries, agricultural development, improved living standards, creation of knowledge and increase in investment. Unfortunately, it has also had some negative results; it has made existing technology obsolete overnight, unplanned urbanization and artificial crisis. The number of exports and imports in every country around the world has increased drastically. The benefits of toy manufacturers in them United States has increased due to globalization. The number of imports and exports has increased significantly over the years. Unfortunately, in the United States, has number of manufacturing jobs have been reduced greatly particularly due to interaction with China which was believed to improve the U.S trade deficit and create good jobs.
Germany has been known for refusing to use high tech products yet they had a very strange way of using technology. Globalization has made Germany’s automobile industry, despite their trying not to use the so called high tech products, use them to keep up with the ever growing economy. Germany’s auto market has grown over the years due vast products produced to ensure the companies maintain their profitability. Germany has ended up selling her products overseas as now it’s the best way maintain profitability. The level of products produced by Germany’s auto market has kept increasing and increasing so as to keep up with the competition.
Business organizations are now under pressure than ever before due to a lot of competition from the global economy resulting from globalization every company has to increase their productivity in order to meet completion. Globalization has increased the competition among industries around the world making higher productivity the main aim of all industries so as to keep up in the competition. Productivity is everything in the long run. The whole world is now a global market hence industries and business organizations have to work extra hard to meet the needs of this vast number of people and since there are many companies, each has to work twice as hard to emerge at the top. A globalized market place then means that the productivity has to immensely increase to fit the number of people in the globe. Fortunately, a globalized market place also means that the profits will also have a substantial increase for all companies. Globalization has just brought many different people together, ensured peace among nations, improved living standards and boost economic activities of many nations.
References
Bishop, T., Reinke, J., & Adams, T. (2011). GLOBALIZATION: TRENDS AND PERSPECTIVES. Journal of International Business Research ,1(10), 117-130. Retrieved February 1, 2014, from http://search.proquest.com/docview/886529226?accountid=32521
Ghauri, P. N., & Powell, S. (2008). Globalisation. London: Dorling Kindersley.
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