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Globalization commerce - Essay Example

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It projects the concept of dissolving boundaries, and maximization of opportunities. The idea of free or open market is supported by the principles of…
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Globalization commerce

Download file to see previous pages... Communication across the globe is the main reason behind the expansion of market and commerce. Moreover, the advancements in the field of transportation have also modified the standards of globalized trade and commerce.
The idea behind globalization of commerce is to maximize the opportunities for production and sales. Over the last few decades a lot of companies based in the developed countries have transferred their production units to under developed or less developed countries (Dunning 67-68). The reason behind expanding businesses across borders is to undermine the opportunities like new consumer base, access to raw materials, and cheaper labor.
When foreign investors bring their capital to the under developed countries, it automatically improves the revenue generation of a country. Moreover it offers jobs that help in improving employment statistics of a country.
Overall, the idea of globalization is a progressive one; however, there are some flaws that include exploitation of cheap labor, export of quality produce to foreign countries, inequality, and injustice. Over the years several laws have been made for improving the living standards of the labor, the fight for labor rights has yielded in strict government policies and wage threshold. However, these laws are only applicable in the developed countries, while people living in the under developed regions do not have these securities. Therefore foreign investors look for countries that do not follow these laws, and hence they extract maximum by spending minimum. Further, globalized commerce offers tough competition for the organizations as well as the country, though competition leads to improvement in quality and quantity, but it also eliminate the weaker competitors, which is obviously not good, if one considers the current unemployment statistics.
To conclude one can say that globalization maximizes the scale of opportunities, but if it is not implemented properly there are several ...Download file to see next pagesRead More
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