Contemporary issues in management - Essay Example

Thus developments in telecommunications and transportation infrastructure comprising the emergence of the telegraph together with its posterity and recently the rise of the internet are key aspects of globalization, producing more interdependence of cultural and economic activities (Ritzer, 2011). According to scholars, globalisation can be traced long before the European advent in voyages and discovery of New World. There are even those that trace its origins to the 3rd millennium BCE Nevertheless, the cultures and economies of the world grew very fast as the 19th century came to an end and 20th century began.

The phrase globalisation has been used increasingly since 1980s and particularly in the mid-1990s.Thus the International Monetary Fund (IMF) in 2000 identified 4 primary features of globalisation; transactions, trade, investment and capital movements, movement and migration of people as well as the distribution of knowledge. Moreover, environmental challenges like cross-boundary air pollution and water, over-fishing and climate change are all associated with globalisation. Various globalisation processes are affected and do affect business as well as work organization, socio-cultural resources, economics together with natural environment.

Globalisation has also stimulated innovation. Thus American companies can for instance transfer technology to countries such as China. Thus, Apple’s iPad and iPhones were all prototyped and designed in California but their production is done in China. Thus China’s manufacturing competition is progressively more taking low-skill production while at the same time nurturing highly skilled innovations and inventions (Jones, 2010). In addition, around 15% of technological transformation in Europe previously can be directly accredited to Chinese imports competition, a yearly benefit of nearly 10 billion Euros to European economies.

Thus, companies have reacted to China’s imports threat by adopting