Process of Globalization Is Inevitable - Coursework Example

Globalization Student’s Name: Instructor’s Name: Course Code and Name: University; Introduction In 1983, Theodore Levitt, a writer, became the first of his peers to use the term globalization as he described how people’s preferences seemed to be converging leading to firms gradually offering goods and services that are standardized to everyone around the world. The term globalization refers to the integration of different local markets into world entrepreneurship. Globalization manifests in the world by changes that occur in the organization of economies. The world economy is reorganized and so are the processes of production and consumption. These changes occur across political states (Conley 2005, pp.2). Generally, the concept has been received well in most parts of the world including Australia. Globalization happened in a different way in Australia than other places. Globalization took place in different areas and in different ways but the focus was on business. Australia turned out to be both an importer and exporter in the process of globalization. However, exportation has not been embraced with as much enthusiasm. This is partly because of the higher costs of producing goods for exportation. In theorizing the concept of internationalization, Conley (2002) explained that an organization’s relations with other business entities in the home market may be one of the reasons for it getting into an out country market where new relations and networks are developed. The company’s performance and participation in the international market will increase its level of internationalization, going international results in globalization. One of the most significant and influential impacts of globalization in the world of business is that there is an increasing need for a workforce that accompanies the expansion of businesses to other countries and areas. Organizations are spreading their wings to other countries that are not their own in order to increase their consumer base consequently becoming international businesses (Conley 2001). As the dynamics of any business changes, so do the needs that it has. More consumers’ means that they need more people on the ground level to manage and facilitate production in other countries. A global labor market is becoming a demand as well as a need for international businesses. However, for some critics, the mention of the word globalization gives them a picture of a world where the markets are controlled by one regulated global society or culture. This culture then absorbs or crushes others that may stand in its path (Conversi 2010, p. 36–59). In a business context, this would be a world where international companies and major organizations have power equal or more than that wielded by nations or regimes. Globalization takes place at a rapid rate that may not necessarily wait for companies to catch up with them. One regions of the world may seem to embrace more globalization than other areas. The progression of technology, transport improvement, changes n trade policies and increased access to information have transformed the ways that recruitment and training is done in international business. However, every business is unique and has some needs that may differ from others. As a result, people would be buying products and services from them since they control the markets. Everyone would end up with the same type of product and follow similar trends because of the values that have been place by these organizations. In the global market at present, most product innovation practices takes place in the United States and Britain (Hay & Marsh 2000, p. 1-17). The products are then modified by other markets then sold to other markets all over the world. This has been the trend for centuries and changing it will not be an easy task. Like any other project, multinational companies need to begin by experimenting whether reverse innovation can work. If this is done, there will be no more centralized decision making because this role will go to the local teams who will be in charge of project development. The world has become a smaller place in the context of communication which then leads to opening up of world markets. As world markets open up, rules and regulations are put in place to control the mode of business interested practicing globalization and with time, world businesses become a single market place (Hay & Marsh 2000, p. 1-17). International trade is one of the factors that have contributed to the growth of globalization in Australia. Individuals often travel to and from various countries. An entrepreneur may travel to Australia for business or pleasure and in the process, get ideas from the businesses they sees going on over there. As more people travel all over the world, they may find that other people have the same business ideas as them and as a result, they may become partners who then look for other who have the same ideas and in the end, have a business network. Another factor is the internet which has opened up communication channels between businesses and people who may not have met otherwise. The internet also has information about other businesses and people who may be interested in forming partnerships with them from other countries can communicate with them and learn more information about them. (Bliss 2004, p. 97-203) Organizations with consumers from all over the world have great power both within and outside their countries. For instance, major oil companies have enormous influence on world policies especially those that deal with money and they also have political influence because of their huge income and bank holdings. Despite this, the uniqueness of products and variety depend on the different cultures and societal setups that make up local cultures (Giulianotti & Robertson 2007, p. 133-152). Different principles, ideologies, values, morals and traditions are all constituents of a culture. They are also the same things that lead to the conflicting of cultures. The conflict between cultures leads to the making of history and developing of influential ideas. When different ideologies meet, chaos are bound. This is the case with globalization where people, for the fear of losing the uniqueness of their products, resist the entrance of global organizations into their markets (Merryfield 2000, p.502-526). However, the benefits often outweigh the risks especially in countries at the peak of development like Australia. Globalization has opened up markets for Australian business men all over the world where they can expand their business. There are various factors have contributed to the growth in globalization. Factors of growth One of the main drivers of the growth of globalization to the phenomenal concept that it is now is the expansion of information technology and especially the internet. As companies advertise more of their goods in the internet, consumers from all over the world make more demands to have the goods and services that are offered (Merryfield 2000, p.502-526). Thus companies have had continuous pressure to expand and gain competitive advantage. In addition, the tremendous increase in international trade has led to more people wanting to have access to foods and services that are offered in other parts and regions of the world (Merryfield 2000, p.502-526). International markets result in international consumers who want global brands thus hastening the growth and development of globalization. International trade, which is ultimately the basis of globalization, has had aiding aspects including lower transportation costs, improved technological and improved communication which have made the practice easier for business men and consumers. Over the years, more people have moved to different parts of the country exposing the world to newer markets and areas of knowledge and different sets of skills (Bliss 2004 p. 97-203). This exposure to foreign knowledge and skills gives businesses options to source their corporate desires from other areas. Developing countries have had chances to mingle in globalization through business opportunities and employment chances. This speeds up globalization in developing countries as well. The prevalence and profitable nature of transnational businesses has led to other organizations taking the same path thus hastening growth of globalization. In addition, international businesses and organizations have had great influence especially in the twentieth century. One of the most important and influential of the international organizations is IMF (international monetary fund) (Bliss 2004 p. 97-203). It impacts on almost all economies since it gives loans to nations that have applied for funds from some of the richest nations in the world. As they channel these funds, they also make deals with the countries that receive the funds where they have to run economies that are characterized by free market economies. This means that products, services and finances will start exchanging hands in these economies. As a result of these kinds of arrangements, globalization grew at a dramatic rate. The definition of globalization itself speaks to the fact that it is not an eventual end result but a process that continues to grow and gather development (Hay & Marsh 2000, p. 1-17). In addition, the entire process of globalization makes world economies reliant on one another in that they supplement each other in one way or another though some may have more power than others (Lee & Vivarelli 2006, p.2-10). Among the processes that have sped up globalization is the reduction or removal of barriers to trade in Australia. As more countries open up due to international trade, trade barriers are being reduces and some are completely removed. Business men Australian business men are enjoying overwhelming benefits that have arisen from globalization of their economy and so have the consumers. The Australian economy has made appropriate and effective adjustments to globalization and embraced the liberalism in economic factions that accompanies it. John Howard has highlighted the fact that the economy in Australia has been growing for fourteen continuous years and the upward trend is encouraging for business men and consumers (Conversi 2010, p. 36–59). However, the focus on the success has impacted some of the consumers negatively since some of the problems that accompany globalization have been overridden by the success story. A less positive reality that has accompanied globalization is a rise inequality (Conley 2005, p. 2). The argument that accompanies this reality is that not everyone in Australia is doing well; it’s just that a few people are doing extremely well for the overall economic situation to look well. However, a direct correlation between globalization and a rise in inequality is yet to be established. One of the results of globalization is that financial markets and capital has gradually become internationalized. The result of this for Australian business men is that they have more access to global finance (Hicks 2003, p. 265-275). Consequently, the opportunities of expansion of businesses to outside are phenomenal. The expansion can happen either in the domestic or international context. In addition, businesses have more financial options to choose from thus they can make the best choice that meets their financial needs effectively and productively. Globalization has had many implications to businesses in Australia. The emergence of global labor markets has created a pool or reservoir of human resources. The advantage is that the productivity of these companies will increase as they have more choices of employees and they have access to those with the skills that they need in their companies. In addition, increase in quality of production because of a capable workforce will lead to consumers getting goods that are of high quality at affordable prices. Also, business men in Australia have more opportunities to give their companies competitive advantage as there are chances of relocating to places around the world where the business environment is most efficient for production. In addition, they are able to cut down on cists of labor as the labor market has greater mobility. Another impact is that as businesses become more popular, so does the country. As a result, Australia has been opened up for more tourism opportunities. In conclusion, it is obvious that the process of globalization is inevitable in the world and more so in Australia. Based on the fact that Australia’s economy is at the peak of its growth, globalization and its effects will hit the country in many aspects. However, the negative impact that seen to accompany it can be alleviated by seeking alternative strategies of globalization that will, benefit all or a good percentage of the country economically and socially (Hay & Marsh 2000, p. 1-17. The concept of globalization is multifaceted and so are the benefits that it can give to an economy. In addition, options of how to encounter then concept are also numerous. Policies that have opened up Australia to the rest of the world should include measures that will ensure Australia and Australians benefit the most. List of References Conley, T 2005, Globalisation and Rising Inequality in Australia: Is Increasing Inequality Inevitable in Australia? Retrieved 1 August, 2011, from http://www.adelaide.edu.au/apsa/docs_papers/Others/Conley.pdf Conley, T 2002, Globalisation as Constraint and Opportunity: The Restructuring of the Australian Political Economy, Global Society, 16 (4), 11-31 Conley, T 2001, The Domestic Politics of Globalisation, Australian Journal of Political Science, 36 (2), 223–246 Conversi, D 2010, The limits of cultural globalisation?, Journal of Critical Globalisation Studies, 3, 36–59 Giulianotti, R & Robertson, R 2007, Forms of glocalization : globalization and the migration strategies of Scottish football fans in North America, Sociology, 41 (1), 133-152 Hay, C & Marsh, D 2000, ‘Introduction: Demystifying Globalization’, in Hay, C & Marsh, D (eds) Demystifying Globalization. Basingstoke: Basingstoke, p. 1-17 Hicks, D 2003, Thirty years of global education: a reminder of key principles and practice, Educational Review, 55 (3), 265-275 Lee, E & Vivarelli, M 2006, The Social Impact of Globalization in the Developing Countries, IZA Discussion Paper No. 1925 Catholic University of Piacenza, pp.2-10, Retrieved 1 August, 2011, http://ftp.iza.org/dp1925.pdf Merryfield, M 2000, How can electronic technologies promote equity and cultural diversity? Using threaded discussion in graduate courses in social studies and global education, Theory and Research in Social Education, 28 (4), 502-526. Bliss, S. Dr. 2004, Enlarging our global perspective: Lessons from Ghana, Social Studies, 91, pp. 97-203 Read More