Globalization and Production Chain - Essay Example

Globalization refers to the increasing universal connectivity and economic integration of cross-border activities in the corporate sector through removals of barriers of free trade and capital mobility. It has major impacts on the world in the financial, communal, cultural, political, environmental and technological areas. Globalization is a comprehensive term and it has a number of key concepts and theories concealed within it. The idea can perchance be better portrayed as an idle process built upon a number of sub-processes such as virtual corporations across physical borders, progress in information technology, elimination of cultural and physical barriers etc.

that are increasingly shrinking the humanity into a global system constituting of a universal society. The best example of globalization is the internet revolution. Despite the level of importance acquired by the subject a standard definition is yet to evolve and a number of varied opinions dominated by the perceived merits of the concept are used to describe the all important the driving engine of the 21st Century. Globalization has been defined been defined with respect to various aspects of life some view it as the homogenization of cultures, norms, values and attitudes across transnational borders.

While others consider it as the standardization of procedures, experiences and knowledge which may not only be limited to the corporate sector but even to other areas that impact an individual's life in current globally influenced society. On the other hand from an economics point of view globalization is considered to be the meeting of prices, products, wages, rates of interest and profits towards the developed country's standards. Notwithstanding the varying opinions the following attributes have been universally accepted to be associated with the impacts of globalization and whatever leads to any of the following results would be an aspect of the Globalization.

People around the world are integrated and connected to each other while the physical distances have shrunken. This trend has been evident in the aftermath of the evolution of information technology. A convenient flow of information and capital throughout the globe. Goods and services manufactured in one country being easily accessible by the people living in other countries. The role of Multinational Corporations (MNC's) has been evident in this case. Communication and journey across the borders becomes a routine activity.

All the above states characteristics can be easily identified in the current environment we live in. To maintain a Mercedes, wear a French perfume, to talk to friend in Australia, to be able transfer money from New York to London in a split second or to be roaming on the streets of Delhi within a couple of days are realities that have traveled through the dark roads of idealism and have blessed us by the virtue of globalization.A question then arises is globalization a feature of the 20th Century or its existence can be traced back further.

The answer to this is that globalization has been a phenomenon that is as old as the human existence. Man has always tried to break down the shackles of physical frontiers and explore new horizons. From the time when human being first involved into barter trade till the undertaking of organizational activities through