Importance of the Government and Business in the Globalised Society - Literature review Example

IMPORTANCE OF THE GOVERNMENT AND BUSINESS IN THE GLOBALISED SOCIETY Name: Course Instructor’s name Institution Date IMPORTANCE OF THE GOVERNMENT AND BUSINESS IN THE GLOBALISED SOCIETY There are clearly a lot of issues revolving around globalisation. The government and business are important aspects in the globalised society. In this case, the government and business are crucial bodies that have fostered international investment in globalisation. The government ensures that the globalised society is regulated in order to ensure that it is less volatile. The business, on the other hand, ensures that the globalised society is self-sustaining through the provision of various businesses which acts as players in globalising the environment. This paper, therefore, seeks to review the importance of businesses and the government in a globalised society. Creation of job opportunities and Regulation of the global market Businesses have a huge role in the global society, in this case, businesses are attributed to creating nearly 80% of the global job opportunities. For instance, business have the largest gross domestic product (GDP) in the global environment. This has therefore impacted and improved the global competitiveness in the global society which has led to organisation stepping up and impacting in the global society. Governments on the other hand foster the global environment by providing a sustainable environment on the global scale(Kapfer, 2016, pp.7-9.). Businesses foster interrelation between governments and in the long end impacting the global peace and conducive business environments. Consequently, businesses have ensured that companies relate through import and export ventures which leads to improved economic performance in various countries globally. Harvey (2005) emphasise in the connection between business and development on the global scale, in this case; he claims that business has been a huge influence on the globals development regarding innovation, economies, technology and other aspects aligns with business a case in example monegram and paypal’s money transfer services have connected and made the universe a globalised society. Multinational corporations have surpassed cultural elements that the global environment provides and in contrast companies like cocacola, macdonalds,toyota and volkswagon have made the business environment a global economy and created job employments in various countries (Rasiah and Lin 2005). Fridell (2007) claims that the government has had an autonomous impact on globalisation through setting up international trade policies to provide adequate regulation in the globalisation environment. In this case through intergovernmental agencies government have been able to implement policies based on self-reliance, development and economic nationalism which has streamlined the global business environment making it much easier for the organisation to break into the global market for instance the world bank, the commonwealth, united nations etc. Through international and national governing bodies the government has been a dominant paradigm that has significantly impacted the globalised society for the past couple of decades. However, Harvey (2005) also claimed that neo-liberal free traders were against the government influence in globalisation due to environmental and social reasons. However, he also cautions that their reasons were not influenced by the need for the government interventions in the protection of private property rights, and creation of bureaucratic organisations to regulate and enforce policies in the global society (Wild, n.d.). Government and businesses work closely to enact policies which help foster a globalised environment. They have been the driving factor that fosters the entire global market spectrum. Thus, the government is involved in getting rid of the market barriers through implementation of market-distorting tariff that ensures regulation in the global market scale (Coombs, 2012, pp.97-99).Through the government enacting on businesses, cohesiveness has been restored in the globalised society. The government importance in the globalised society is, therefore, evident through its efforts to eradicate the constant challenges in the global market while also fostering opportunities for businesses. The government, therefore, plays a crucial role in the globalised society is mitigating barriers that may hinder globalisation (Legrand and McConnell n.d.). The government and busines importance in the globalised society is also evident through its creation of improved market mechanisms through overseeing the market and coming up with regulation for globalisation. They work in collaboration and set the ground rules on how the global markets will operate in order to ensure that it is fostering all the countries economies and businesses while making sure unfairness does not prevail in the global society. Governments have therefore restored credibility and stability in the global market through financial systems and interaction for intance the monetary fund and world bank that helps harmonise different currencies (Steurer, 2013, pp.387-410). In this case, the government has provided stimulus to the global market economic growth therefore countering the depression risk which would significantly affect all countries participating in this market (Grant n.d.). The government, in this case, is the pragmatic factor that fosters an open economy while also dealing with the potential risk issue in the global market. On the other hand, businesses generate revenues for the global economy as a whole as well as create job opportunities. A survey carried out by world bank revealed that businesses contribution to the global society through job creation fostering is estimated to be 67% of the total job opportunities on a global scale. Hence, in an estimated 99 countries businesses employ between 5 and 250 employees (Gupta, 2014 p.485). This is a huge contribution from businesses that is attributed to the impact it has on the sustainability of the global economy. Job creation, in this case, is an important contribution judging by the current unemployment rate in the global economy. Businesses have therefore created other emerging economies to integrate with the global economy. In this case countries that attained independence or stability later have steered their economies through businesses in specific SME’s. Fostering innovation The importance of business in the global context can best be seen in their means to foster innovation. In this case, through these businesses innovation as been significantly fostered. Globalisation has led to businesses emerging into the global market fostered by an innovative touch, for instance, innovative technology, product or services, finite resources or access to raw materials (The Globalisation of Firms as Social Systems, 2011). Through innovation fostered by businesses the global market is now characterised by new organisations patterns, methods of working, Therefore the importance of business in the globalised society is to innovate and deliver effective and efficient resources and state of the art products and services. Businesses like facebook and twitter have made the world a global village and most government despiter a few have help these innovations thrive thus contributing to a globalised society. Global economic contribution and Creation of free trade The importance of businesses in the globalised society is also publicized through their global economic contribution. It is estimated that business accounts for 52% of the global economy. Despite the significance variance of each country’s GDP which includes both the high income and low-income countries, businesses are the largest contributors to the global GDP. Ayyagari et al. (2003) states that the statistics of these countries separately often mask the overall contribution of businesses at a global scale. However, unmasking these statistics by review the overall contribution of businesses reveals how significant this contribution actually is. According to Wymenga et al. (2011), this can best be reviewied through business contribution to the global economy’s output hence a globalised economy. Multinationals help in the circulation of funds in the global society and their flexibility and cordination with various governments has seen countries like china dorminate the business world rapidily (Messner, 2015, p.16-35) . Additionally businesses work hand in hand with governments to steer global econmies. Businesses do not appear to suffer equally from the economic downturns as the global economy does. For instance, in the U.K it is claimed that most businesses reported a turnover that was higher compared to that taken during the pre- crisis period in the year 2007-2008. Despite the fall of the employment rate during this crisis, the economic output of more countries recorded a significant increase contrary to that of the global market. Any decline in the economic output of business during this crisis period was recorded to be temporary. Thus, businesses did not entirely experience the economic crisis that the global market was experiencing. This provided some level of stability to the global economy since these businesses were sustaining it. This factor prevented the global economy from experiencing much of the economic crisis which later on led to its quick recovery in the year 2010 (Kuhn, 2010, p.442). The government, on the other hand, proves its importance to the global society throught the creation of free trade and other principles and measures that foster the global economy. Sachs (2005) claims that the government is the most significant driver of globalisation through the implementation of standard procedure, legal structures and measures which ensure that globalisation is fostered. Sachs (2005, p.31, p.54) also, emphasises that the government influence on globalisation is evident in the implementation of sustainability policies most MNCs. Wallerstein (1974) Backs up this notion by claiming that the government has been a major player for the global industrialisation push for organisations which can now be aligned with globalisation. North and Cameron (2003) consequently claims that active government support has fostered the push of socially, and environmentally viable industries in the global society. Ensure availability of adequate goods and services through fostering international trade Business impacts the globalised society by ensuring availability of a larger volume of goods and services. Through globalisation, countries have been able to benefit from the availability of good in large volumes. This has been essential especially for countries which significantly lack some particular goods. These countries are now able to import these goods in large volume thanks to globalisation which has impacted inter-country trade (Gopinath, 2012, P,316). International trade for some countries has continued to be an engine steering their economies, and this is fostered by the aspect of businesses which ensures that this trade actually takes place through the provision of goods and services.On the other hand, through business consumers in the globalised societies have also been availed goods that are relatively cheap. On the contrary Gunningham (2005, p.335) cautions on the issue that international trade might affect the economies of separate countries. He gives backup to this claim by further saying that this fosters harmonisation of prices in domestic goods availed by other countries due to the availability of relatively cheaper goods from other countries globally. However, through government interventions this concern can be resolved. Governments place acertain limit on the goods that can be traded thus assuring the consumers from globalised societies of the availability of goods especially those that are adequate in their specific countries (Amuwo, 2011,p34). The government importance in globalised society is evident through how governments’ credibility fosters international trade between countries. Through globalisation, various factors seem to have a significant impact on countries intergrade operation (Amuwo, 2011). Thus, government credibility is one issue that impact on countries intergrade activities. Countries are more likely to trade with countries that have a stable economy in order for the trade to be of mutual benefiting to various parties involved. Therefore, governments with bad reputation more often than not negatively impact on their own inter-trade operation. Additionally , governments who have established their credit capabilities with the International Monetary Fund (IMF) are more likely to have effective and efficient inter-trade operation in the global market scale translating to an impacted global society (Fridell, 2010 ,pp.457-470). On the contrary, flagged countries with negative credit capabilities are in most cases banned from carrying out trade in the global market by the International Monetary Fund (IMF). Conclusion Inconclusion, it is evident that both business and the government are important bodies that foster globalised societies. They are outrightly important to the globalised society through their contribution in globalisation, specifically business countries have been able to benefit from the availability of adequate goods which have been acquired through inter-trade operation of these businesses. Governments, on the other hand, is also depicted as an important body in the globalised economy. Specifically, the government has ensured that there is regulation in the global economies ensuring that all member countries taking part in international trade get a pie of this trade operations. Governments bring order and sanity to the global economy while businesses exploit the avilable resources to foster sustainability. References Coombs, A. 2012. The limits of ‘new power’ So many voices, so many causes. From Griffith Review Edition 51, 314, pp.97-99. Fridell, G. 2010. Fair Trade, Free Trade and the State. New Political Economy, 153, pp.457-470. Gopinath, C. 2012. A systems framework for globalisation. IJBG, 83, p.316. Grant, W. n.d.. Globalisation, Big Business and the Blair Government. SSRN Electronic Journal. Gupta, A. 2014. Business and globalisation the new face of micro lending in India: a case study. IJBG, 124, p.485. Kapfer, S. 2016. Multinational Corporations and the Erosion of State Sovereignty∗. 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