Globalization Has Influenced Different Stakeholder Groups - Essay Example

Title: Globalization has influenced different stakeholder groups and will have an effect on all stakeholders in future: Country (Economic and social-cultural impact), Business Organizations, Customers Name: Class: Unit: Introduction Globalisation has had major impacts on different stakeholders globally and will have an impact on all stakeholders in future. It is a qualitatively new form of development made of three main dimensions which are economic, social and political. Globalisation can be looked as a movement which scope is increasing with time. Through globalisation it has become possible to integrate economies, peoples, business and governments. Three main areas which globalisation has had impact are economic and social cultural, business organisations and customers. Economic development and social cultural impacts are associated with economic growth and improvement of the society (Parker 23). This has been brought by an increase of cross border trade. In addition, there have been improvements in the lives of peoples in different ways. Business organisations have benefited from improved trade and expansion globally. For the government, there have been a lot of impacts ranging from unilateral integrated system associated with greater focus on world events (Veseth 41). This paper will analyse positive and negative infleucne of globalisation on different stakeholders. The stakeholders to be analysed are country (economic and social cultural impacts), business organisations and customers. Positive and negative impacts to country (Economic and social-cultural impact) Globalisation has had varying impacts on the countries. Analysing globalisation in a country impact perspectives leads to both positive and negative influences (Boyer and Daniel 53). In most cases, the impacts to countries have been varied based on the level of development. The social political structures of the countries have been influenced in a great way both positively and negatively. For the developing countries, there have been increases in foreign direct investment. This has led to economic growth and social development. An example of a country that has benefited immensely from FDI is china. China has benefited from globalisation which has seen their GDP growing at year on year 5% since 1990. The level of GDP has risen from $370 to $1,000 by 2008 and continues to rise (Schmukler, 39). The movement of labour has made it possible for the countries to earn from remittances. This has positively impacted economic development. For most of the African countries, their economies have developed and there have been an inflow of FDIs. Business from the developing countries has gained an opportunity to compete in the global stage. This is especially in the East Asian economies which have seen a great growth in their GDP (Goldberg and Nina 39-65). In the developed countries, it has been easier to buy goods at reduced prices. This is through outsourcing in the developing countries such as Bangladesh (Crane and Dirk 31-45). Despite the positive impacts, there have been a lot of negative influences of outsourcing. This is due to the low wages and poor working conditions in the sweatshops. The sweatshops have also contributed highly to exploitation, child labour and human rights abuse (Crane and Dirk 31-45). For the developing countries, the influence of globalisation can be looked based on the dependency theory. Dependency theory suggests that social and political changes that occur due to globalisation have a negative impact on development. This is due to fact that globalisation has led to mass labour migration to the developed countries. This has led to the claims that capital accumulation of the developing countries is extracted by the developed country (Lee and Marco 173-181). While the countries wants to benefit from economic development associated with globalisation, they have had negative impacts on their social cultural aspects. Culture has become fluid making it hard for countries to maintain their own cultural identities. Many of the developed countries have had an impact of westernisation of their cultures which is claimed to undermine their traditional societies. Countries have suffered from environmental pollution due to industrialisation and this expected to continue in future if measures are not taken. The growth of international trade has led to wide social inequalities in the developing countries. This is due to fact that global trade has been profit focused with less concern for the individual countries needs (Crane and Dirk 63). Business Organizations Globalisation has changed how business is conducted and visualised. The impacts that globalisation has had on business is pervasive and extensive leading to new approaches to doing business. Business organisations have been made to review their business approaches from traditional strategies (Parker 44). This is through planning at both global and local level. There have been a lot of positive impacts of globalisation on the business organisations. First, it has become possible to access the global market. This has led to global business organisations such as McDonalds. The fast food industry has been a major beneficiary of globalisation with their popularity growing worldwide. For example, McDonalds have been able to open over 33,500 restaurants in over 100 countries (Ritzer 10-27). For the business organisations, globalisation made it easier for them to import and export through developed and low cost infrastructure. This has supported the international business in a great way addressing the issues of employment and poverty alleviation. Business organisations have been able to benefit from low cost of labour in the developing countries (Mathews 24). This has made it possible for them to lower their production costs. An example is Hp which has benefited from setting manufacturing plants in china. Despite the positive impacts, globalisation has led to increased competition in the market. This has made the domestic firms to engage in competition with the foreign firms. When a global firm enters a domestic market, the existing business organisations are forced to come up with strategies to compete. Countries such as china have had their business producing goods at lower costs than the developed countries. This has forced the developed countries to lower the costs of their products. Moreover, the spread of global fast food chains such as McDonalds have been blamed for rising cases of obesity among other health issues (Veseth 121). In addition, globalisation has led to risks on business due to shared infrastructure. There have been new and rising threats which have been associated with the venerability of the existing business infrastructure. This includes cybercrime, supply chain ethics and shared economy. With shared economy, the global business organisations have been exposed to economic crisis (Sandywell 20-27). Globalisation and customers With globalisation, consumers have been denied their geographical isolation. This has led to both positive and negative impacts on the customers. Starting with the positive impacts, it has been possible for the customers to gain access to goods and services from different parts globally. This has given the customers freedom of choice due to high number of alternatives (Scriven 13-21). The free trade agreements and economic forums have led to an increase in products and services in the global markets. This has also lowered the costs of goods and services. Globalisation has led to production of quality products and cheaper prices hence benefiting the consumers. This caused by the competition in the market which has made it vital for the business to listen more to their customers (Riefler 34). With the enhanced access to market, customers have become more satisfied since they can access what they love at reduced costs. On the other hand, globalisation has negatively affected the consumers through exposure to unethical produced products. Good and services are outsourced from the developing countries in sweatshops and sold to the developed countries at lower prices. This practice leads to ethical concerns since workers in sweatshops works in unfair conditions without any protection. In addition, consumers have been exposed to substandard goods and services in the market. This is mostly through dumping by the countries such as china (Suh and Kwon 664-665). Customers have been exposed to online fraud among other cybercrimes. This is through making purchases in unsecure online sites or scamming (Scriven, 17). Lastly, consumers have influenced by globalisation to consumerist culture risk. This has made the consumers to face low quality products, ethics issues and health risks. In addition, the high consumption in the wealthy countries has led to a wide gap between the rich and poor. This has been proved by the 2005 data which showed that 10% of the wealthiest population consumed 59% of the global resources. This is while the poor 10% accounted for only 0.5% of the resource utilisation (Greentumble Editorial Team). Conclusion To sum up, globalisation has led to both positive and negative impacts on country, business organisations and customers. While the countries have benefited from economic development, some have benefited more than others. The developed countries have benefited a lot from the movement of labour and expansion of business overseas. The developing countries have benefited from an increase in FDI and remittances. The social cultural impacts have been mostly negative with the developing countries having their cultures westernised. Also, the gap between the rich and poor has increased despite an improvement in living standards. For business organisations, they have been able to expand globally. This has led to multinationals, reduction in unemployment and reduced production costs. There has been an increase in competition in the domestic markets due to global business penetration, rising cases of obesity and an increase in business risks. Consumers have benefited from increase in choices for products and services, reduced costs and access to quality products. Despite this, they have been exposed to unethical practices, cybercrimes and substandard goods among others. The impacts are expected to continue in future for all stakeholders involved. References Boyer, Robert, and Daniel Drache, eds. 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