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International Business Issues - Essay Example

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The author of the essay "International Business Issues" accentuates that Globalization involves crossing border transactions of resources, goods, and services between nations. This has increased links among countries, especially in the fields of politics, culture, and economics…
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International Business Issues
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Extract of sample "International Business Issues"

Finally, the competition arising from globalization encourages creativity and innovation, in addition to keeping commodity prices, and services in check (Stief 5).However, just like everything else, globalization comes with its demerits. Firstly, the interaction of different world cultures has eventually begun to meld, thus fading the identity of each. The second negative effect is that while outsourcing provides job opportunities to people in one country, it takes away those opportunities from another country thus leaving most of the population jobless.

Finally, globalization has increased the chances of spreading highly contagious diseases worldwide, and it might be an immense challenge to stop the spread (Stief 6).Globalization also has various effects on developing countries such as Honduras, a country rich in natural resources, but like most third world countries, only the wealthy and foreign corporations benefit from this wealth, not the poor. The first effect is that third world countries can now improve their economic performance and their living standards as more money gets channeled to these countries.

 Secondly, developing countries have the privilege to enjoy the benefits of highly developed technology available in the market without having to develop them. Finally, the opening up of trade barriers has made it possible for developing countries to take their local resources to the global market (Stief 8).

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