Positives and Negatives Associated with Globalization - Essay Example

International business Name: Course Instructor’s name Institution Date INTERNATIONAL BUSINESS 1 DISCUSS BOTH THE POSITIVES AND NEGATIVES (NOT NECESSARILY IN EQUAL MEASURE) ASSOCIATED WITH GLOBALIZATION. IN DOING SO, DISCUSS HOW GLOBALIZED ECONOMIC INTEGRATION HAS AFFECTED THE POLITICAL, SOCIAL AND ECONOMIC LANDSCAPE Globalization is geared towards integration of the world through an increase in international cooperation in economics, politics, idea, cultural values and the general exchange of knowledge. Globalization has been influenced greatly by technology and a general need for a globalized society and economy. Globalization has helped improve the economy of the world through economic globalization through the easy movement of capital across borders and the increased direct foreign export (Donald & Geringer 2012). Globalization has led to harnessing different social values in the world through sharing and incorporation. Political globalization has led to a more vigilant and controlled world environment with an emphasis on the democratic will of the world. Business that operate globally do so because of the social, economic, and political benefits that rise as a result of globalization. Globalization has had an impact in the world and benefits are felt all over the globe. From a business perspective, globalization has brought about advantages and disadvantages at an equal measure. Globalization has brought free trade internationally, and free trade helps break down the barriers that stood between different nations and thus a surge in international businesses and investments. Free trade has led to global economic blocks e.g. the Commonwealth, and European Union do business without import and export restrictions. Secondly, globalization helps in free movement of labor, and this brings about the movement and integration of skills in a global perspective thus making it easier for employees to move from one country to another. This labour movement help fix economic gaps in the global labour market through the hiring of extra labour from overseas like the case of the United kingdom’s health sector where they had to seek the help of India to enforce their workforce. Moving to better job markets and in some cases work online using technological gadgets like the computer and internet (Adler, 2002). Globalization also brings about an internal market pool where goods and services can be accessed with a lot of ease by customers or countries. Globalization has brought about cultural intermingling, and this has led to countries and individuals to appreciate cultural and social differences that exist in between different regions and races. For example, globalization has led to a decrease in racial segregation, individuals being able to mingle freely despite the differences. Through this, there is a high tolerance for other countries and openness socially. Globalization has brought about global political mergers and decisions that aim at benefiting every individual in the world (Donald & Geringer 2012). Globalization has made sharing of information globally possible through speedy travels and mass communication which are central and vital to any business environment. Due to globalization there is a global call for cooperation and governments to try and sort out ecological issues that may affect the general well-being of individuals globally. Globalization brings immense opportunities to nations in the form of having them capitalize on their strengths while ignoring their weaknesses. By this, countries that are short of particular commodities can freely import them without worries on any form of restrictions. International businesses between countries help drive prices down having that multinationals are able to sell their products in bulk thus offering economies of scale which in turn lowers the prices of those commodities. Globalization brings about consumer and economic benefit; consumers are able to enjoy a variety of products to select from consequently lowering their expenditure. While international cooperation have been able to tap into the market, they couldn’t reach before. Although globalization has been beneficial, some of its features have brought about problems in the global economy. Globalization has been blamed for the unfair competition being witnessed in global economies more so the third world countries. Multinational cooperation are setting up businesses in global markets and competing on an equal measure with local cooperation that lack the financial power wielded by international cooperation hence bring about unfair competition. Therefore, free trade is only beneficial when the playing field is even (John & wild 2013). Through free trade developing countries have lagged behind developed nations and with advancements in technology and globalization general they will never catch up with the leading global economies. Globalization has led to ‘labour drain’ having that globalization makes movement of labour easy among countries thus countries that have a limited job opportunities and a poor economy that can’t sustain skilled labour is bound to lose its top talent to countries and cooperation that offer better pay and developed. Another disadvantage is that global organizations seek personal gains, in international trade large multinationals exploit tax haven thus bring a negative economic impact on taxation. Organizations that trade with other countries while based in their home country more so in Switzerland and Hong Kong avoid paying taxes in those countries that they generate their profits. Hence, bring about an economic crisis in the sense that the country of business losses a lot of capital in the form of revenue (John & wild 2013). Consequently, this causes those countries to increase taxes on consumer products and property in order to cater for the lost revenues accrued from corporate tax avoidance. Globalization has also led to weakening of specific cultures in favor of greater economic and cultural hegemony, although cultural hegemony being beneficial most countries are losing their identities at an alarming rate due to migration that is occurring in a large global context. Most multinationals are becoming so powerful in the global economy and thus the promotion of unethical business means and cooperation. Globalization has also brought about cheap labor, and this has led to citizens in developed countries losing their jobs in favor of cheaply available labor from developing countries. Globalization has had a negative impact on the environment in the sense that an increase in consumer consumption triggers an increase in production and manufacturing that in turn causes an uptick in environmental pollution. Economic integration brings about unification of policies and consequently eradicates tariff and non-tariff restrictions on trade among the incorporated countries around the globe, for example, the Commonwealth. This brings about reduces prices on commodities and with an emphasis on increasing the combined economic productivity of states (Donald & Geringer 2012).. Economic integration is geared towards bringing free trade, free competition and zero trade barriers among those states. Economic integration aims at higher productivity among integrated states. Read More