Explain what is meant by globalisation and discuss its key driver; review the implications of repid globalisation for business managers - Essay Example

Due 1324 words Globalization Globalization is the unification of many people from many parts of the world. Alternatively, globalization of markets is the bringing together of markets all over the world to be one, what many scholars may refer to as integration1. The reason for globalization is mainly to boost the economy of the countries involved or help one another decipher a common crisis. Though it is a great way to improve the well-being of the state, it is known to weaken the sovereignty of some states and interfere with governance structures2.

It can therefore be said that what defines the effect of globalization is how states embrace it and how best a state can handle the shortcomings. The key driver of globalization is technology, and its impact is discussed below.  Effects of Technology on Globalization Technology has brought more advancement in global trade, which, on the other hand, boosts markets of the states involved. Technology has spearheaded fast communication among the many markets brought together, which has been boosted by the invention of telegraph and telephones, which relay information to targeted areas within a short time compared to days when people had to rely on mails.

Moreover, with invention of television and radio people can monitor their markets even worldwide ones since they are able to know what is going on, for example, when a certain commodity has been banned for import by another country, exporters are notified not to export. It is additionally via radio and television that people in the market know the trends of their currency, and they can determine whether the market is favourable or not. Technology has as well boosted the invention of airplanes that have enabled fast transportation of goods and services to respective markets all over the world3.

  Globalization of markets The invention of the windows-based personal computer has made a greater advancement in globalization of the market. This is because they can access and share information with others globally without restriction. Moreover, the amount of information that they can receive is also not restricted. Succeeding this, was the invention of modems that empowered people to access the Internet fast using their computers or laptops commissioning them to discover new markets all over the globe.

This boosted globalization market greatly as people began to trade hooked up for goods and services as well as raw materials for production, for example, people purchased vehicles from Japan connected then after the agreed period they would go get their vehicles from the port4.  Fiber-optic cable invention has helped marketers access a higher bandwidth and can be on the Internet for long since they use fewer bundles. In addition to that, it created an investment gap for telecommunication companies worldwide.

Transmission of digital content became easy all over the world. People could share clear pictures of the items they are marketing to their target markets and make successful trades. What followed this invention was the creation of workflow software that enabled globalization of production. It made it easy to pass information electronically. Moreover; managers from respective locations would collaborate in sharing ideas. Many companies could boost their productivity and as a result made greater profits5.

Globalization of Production Interaction of nations has been made easy by globalization. International economies integrate due to increasing inflow of goods and capital to other countries. For example, reduction of trade barriers increases trade between producers and consumers from different locations. The current increase of demand of goods is making companies to spread production sites in different parts of the world. Additionally, firms are on the look for locations where they can produce goods with low cost and ways to avail the products globally6.

International Monetary Fund Impacts have been both positive and negative. The worst of all is the unbalanced terms of trade where some countries export more than they import making them spend more than they gain while others import more than they export making them dependent on other countries. However, the International Monetary Fund (IMF) is working its best to handle the problem as one of its principles. Globalization of markets has also led to trade barriers whereby some countries are cut out from the integration.

The IMF is also working on this by ensuring that it assists in the establishment of a multilateral system of payments following recent transactions between members thus eliminating foreign exchange restrictions that hinder the growth of world trade7.  Ensuing globalization, companies can draw ideas from other companies all over the globe which has enabled companies to achieve their targets and improve on their productivity. On the other hand, talent pool has enabled companies to make inexperienced inventions that aid in their business development.

Consequently, it can be said that globalization has brought an invigorated phase of advanced businesses. Globalization has made it easy for firms to practice offshore outsourcing. With outsourcing, companies are able to make fast innovations and minimize on cost. On the other hand, off shoring can discover business gaps. They can set up their own manufacturing plants in potential market areas that have low tax rates and cheap labour among other factors. Integrated, they have led to maximizing on profit maximizing and minimizing on cost8.

World Trade Organization According to World Trade Organization (WTO), globalization has boosted competition among countries involved since there are a variety of commodities in the market, and every country wants to yield the best. This has led to the commercialization whereby there are many companies producing a similar product making companies more innovative to ensure that their product is outstanding, for example, there are many companies across the globe that manufacture mobile phones. Accordingly, each company is trying to come up with an outstanding feature to improve the sale of their phone.

Another effect is that small businesses can venture in the intercontinental market and grow9. With globalization, consumers have a variety of products to choose from since products are sourced globally. Therefore, they can choose the products that fit them best. A good example for this is E-trade that gives consumers a platform to view and access their financial accounts. The World Trading Organization ensured that the trading platform is open to everyone authorized. Therefore, consumers have confidence in using the platforms provided10.

  Conclusion Following the above, it is evident that globalization of markets has helped businesses and companies maximize on profit and minimize on expenses they use to trade. On the other hand, it has assisted many companies grasp markets they would not have attained without globalization. Both small and large companies have benefited, and countries have also improved their economic standards. Countries that have not versed with the globalization of the market, and production should go for it and grow economically as well as enhance good relations with traders all over the globe.

Everyone has benefited from the globalization making it thing for everyone regardless of their business group. Therefore, no one should be left behind in this revolution.  References Bella, L. L., How Globalization Works, New York, The Rosen Publishing Group, 2009, P. 32 Friedman, T.L., The World Is Flat: A Brief History Of The 21st Century, New York, D&M Publishers Incorporated, 2007. IBM, Global Innovation Outlook 2.0, New York, IBM, 2006. Kawachi, I., Globalization and Health, New York, Oxford University Press, 2006.

Martell, L., The Sociology of Globalization, UK, Polity, 2010, p. 76.