Globalization, Research Paper Example

Globalization, the “process of enabling financial and investment markets to operate internationally, largely as a consequence of deregulation and improved communications” helps in making the world within the scope or application (Homann et al., 2007, p. 131). Visualized to be as the simplest way of performing business or running financial markets, the practices of globalization possess relative potential in replacing domestic economic life with heavily prejudiced from overseas. Regardless of its working efficacy, the exact definition of globalization may still persist to be a subject of debate amongst professionals who oppose, support or simply witness it. The theories on Free Trade, Mercantilism, New Trade and Porter’s, Comparative advantage, Trade liberalization and Neoliberalism support the concepts and facts of globalization. It is highly necessary to bear in mind that businesses are the key drivers to globalization (Homann et al., 2007). Presence of multinational companies, rise and falls in trading (like selling software) and encouraging domestic businesses can be certain examples for the proposed barrier. Besides, the developments in technology and communication (use of Internet and e-commerce for distributing the documents within split seconds across borders), reduction in trade barriers and their shift from closed to open end economy (like NAFTA, USA and Indian reorganization) together with the social changes (such as the availability of superior products and services worldwide and enhanced purchasing power) act as prime drivers for globalization. Furthermore, market move (after Europe reunification, global liberalization revolution and financial crisis), declining costs (transportation, communication and development) and global entry of billions of individuals in to the market economy with the rise of US, Germany, UK and Japan in early 17th, 18th and 19th centuries, can also be considered as some of the globalization drivers (Michie, 2003).

Ensuring globalization as a positive benefit for all the individuals in the world-wide market economy, its possible effects (such as increased employment opportunities, enhanced output, higher incomes and advantages) aids in creating a better economy amongst the various developing countries (Homann et al., 2007). Economically speaking, the standard of living, competition and income gap can be widened with the individuals gaining awareness on foreign culture. Additionally, the loss to local culture can be minimized with environmental issues getting resolved.

References

Homann, K., Koslowski, P., & Leutge, C. (2007). Globalization and Business Ethics. United States of America: Auflage Publishers.

Michie, J. (2003). The Handbook of Globalization. United Kingdom: Edward Elgar Publishing Limited.