Historical Overview of the Globalization Process - Coursework Example

Globalization Name University Affiliation Date Globalization Introduction Globalization is the international integration of people and entities sometimes called mundialization. The process of globalization comes because of increased human connectivity, interaction and interchange of ideas, culture, products and other aspects of life. Generally, the term globalization refers to the trend of countries joining economically, politically and socially. The globalization process is believed to bring people of all countries together through common medium like internet. Nowadays, time and space matter less since people can now reach to far places within the shortest time possible and reach out to people who are far apart through telephone or internet. Historical overview of globalization process The history of globalization is deeply rooted in the ancient times during the European age of discovery and voyages of the new world. Human interaction over far distances has existed for thousands of years. History reveal that trade existed between continents, people crossed Oceans, Seas, lands to other places in terms of trading. The evidence of existence of globalization among the communities around the world in early days is seen in languages, arts, religions, philosophies and other aspects of life Husain, A. (2011). Globalization process was greatly affected by World War I&II because people were restricted to visit certain countries and others feared since there was a lot of insecurity. After the Second World War, politicians around the world organized conferences where major governments such a European countries and American states made agreements and laid down the international monetary policy, finance and commerce. Kinds of globalization Globalization is a broad term and can be subdivided into several categories. We have economic globalization, which refers to the increased economic interdependence of economies of different countries across the world. Rapid cross-border movement of manufactured goods and services facilitates this. Thus, economic globalization is the increasing the economic integration among countries of the world leading to creation of the global market. Economic globalization involves o globalization of markets, technology, production, competition and corporations. This is facilitated through literature materials, music, artwork, films, religious doctrines etc. In the modern times, people now understand their differences because they have come to learned that, though we are all human beings, we profess different religion, culture and beliefs. Therefore, the only way to maintain peace and harmony between them is through understanding and appreciating each one’s beliefs. Finally, we have democratic globalization; it is a movement advocating for a common institution of global democracy (Husain, 2011). Factors promoting globalization In regards to Husain, A. (2011).Globalization is being propelled by numerous factors. First, the improvement in transport and communication network across the world has facilitated the transit of goods and people to reach the destination at the right time. Good road networks, electrified railway systems and the development of air transport have made the world to be a global village. Some nations have the transportation corridors and numerous airports, which connects big cities within the world. Thus, traders, specialists, workers, executives and politicians travel within the shortest time possible to reach long distances regions. Innovation of telecommunication devices such as telephones, fax, telex etc has also eased the communication process in the society. The second factor that has promoted globalization process is the comparative advantage certain regions have over the others. This is the ability of a particular country to offer gods and services at a lower marginal and opportunist cost (Stelzner, 2012). The natural resources are not uniformly distributed in every part of the world. Some countries can produce certain products at a lesser cost than others can. The differences in the abilities tend to extend the range of mutually beneficial exchanges. Therefore, the comparative advantage factor that exists in international trade is essential in maintaining competition among the business firms. Thus, it has made nations to be relying on others for particular commodities. Thirdly, globalization has been boosted by the international trade agreements that are often signed by the governments. Nowadays the governments are used to signing of agreements to reduce the trade barriers between them. We have special economic zones (SEZ), export processing zones (EPZ), Free trade zones (FTZ), Free zones (FZ) etc (Husain, 2011). All these came because of mutual agreements among the nations to boost the exchange of goods and services. When these agreements are signed, the tariffs and the taxes charged on the goods being exported or imported are more subsidized thus, the traders could sell them at reasonable prices to get more income. This has encouraged the export of goods across the borders hence the economies grow. The developments of the social networks across the world has been indeed elevated the globalization process. Nowadays we have numerous social networks especially over the internet, we have the face book, yahoo, twitter, Google+, net log etc Manfred, S. (2009). These social networks have increased human interactions within the society. Traders can now reach customer in far countries over the internet with an ease. Finally, the world demographic trends have actually enhanced globalization process. The world’s population growth has been often positive in the last two centuries. The population growth rate is estimated at 1.5% per year and the trend is believed to remain positive for several decades Warwick E, M. (2006).Therefore, the ever-growing population has put pressure on the available resources and people are compelled to migrate from various regions to go and look for better places where they can meet their basic needs. Challenges globalization poses to managers As much as we can say that globalization has brought international integration, it has come with various challenges that face the managers of the current times. The first, challenge that faces the current managers is the issue of winning over new customers outside their country of operation. This is one of the difficult tasks managers encounter; it is hard to gain foothold of customers in other countries due to the competition from the local manufacturers. Different customer retention approaches and the continuous improvement process bring this about (Husain, 2011). Therefore, Management tends to waste a lot of time and funds studying on how it will have to enter a particular foreign market. The second challenge is the how to build a cost efficient production and development of network. As mentioned earlier, there is comparative advantage when producing goods in some countries as compared to others (Husain, 2011). Therefore, it becomes difficult for managers to come up with a cost efficient product schedule in some foreign countries depending on the economic factors that affect their business. Thirdly, sourcing in low cost countries becomes a difficult for managers because of many factors. We have communication and cultural barriers and complex logistics processes. This makes procurement processes more difficult in new markets. Delays in customs processing across borders leads to higher inventories hence eliminating the benefits the corporations would have come as a result. Fourthly, the managers find it hard to retain highly talented experts’ employees who seem to be marketable. The world of business is full of competition, thus, these skilled employees easily run away to look for greener pastures elsewhere when the conditions are not conducive in their places of operation (Micklethwait, John, and Adrian, 2000).Therefore, the managements are forced to provide adequate conditions to retain these workers sometimes it is costly to do this. Lastly, differences in legal framework in different countries where the corporations have established its operation have been a big challenge to the current managers. Different countries tend to have different legal policies, which govern business operations, this sometimes cause delays and raise the cost of operations. Merits and demerits of globalization One of the advantages of globalization is that consumers tend to get a variety of products to choose from; most of these products are manufactured in far countries hence globalization has enhanced satisfaction of the customers (Agrawala, 2009). Secondly, Manufacturing Corporations is accessed to wider markets, thus, they make big volume of sales that means much income. Thirdly, business and investors are exposed to wider investments opportunities in foreign countries hence growth. Fourthly, manufactures are placed in a position of manufacturing gods and services needed at a competitive prices thus, exploiting the comparative advantage exhaustively (Wilhelm, Steve, 2000). Conclusion In conclusion, globalization is a process that started long time ago, human being are said to be social beings. Thus, they would always want to interact with other people around them. Therefore, globalization came as a result to human nature and curiosity of interaction. Globalization is driven by many factors ranging from cultural, social political to economical factors. Current managers are facing various challenges due to the globalization process. The process of globalization has come with numerous advantages and disadvantages, these benefits tend to vary from one region to another. Generally, the benefits globalization has brought to the world over the years supersede the disadvantages, thus I highly recommend that countries should encourage embracing the spirit of globalization for a bright future of this world. References Agrawala, K. (2009). Advantages and disadvantages of globalization. Retrieved from http://www.essayforum.com/writing-feedback-3/advantages-disadvantages-globalization- 16487/ Husain, A. (2011). The challenges of globalization and the role of human resource. Retrieved from http://aheadguide.com/challenges-globalization-role-human-resources/ Stelzner, Michael. (2012). Social media marketing industry Report. Retrieved from http://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2012.pdf Wisegeek. (2012).What is globalization? Retrieved from http://www.wisegeek.com/what-is- globalization.htm Warwick E, M.(2006).Geographies of globalization. In New York: Routledge. Manfred, S. (2009). Globalization. In New York: Sterling publishing. Micklethwait, John, and Adrian Wooldridge. A Future Perfect: The Challenge and Hidden Promise of Globalization. Times Books, 2000. Wilhelm, Steve. "Labor, Ecology Issues Are at Heart of Protests." Puget Sound Business Journal. November 12, 1999.Woods, Bob. "The New Economy." Chief Executive. August 2000. Read More