These manufacturing methods can be replicated by other businesses in the countries and improve their ability to manufacture goods. This improved ability to manufacture within the country and should lead to an increase in the GDP of the country. This will improve the trade and relations between the country and many others. Also in some cases these MNC's will invest in the infrastructure of the country. This will improve the trading process for not only the company, but also the rest of the country.
Globalization is beneficial to developing countries because it raises income, creates jobs and creates an economy where it is possible for people to afford nice things. Throughout Meredith and Hoppough’s article readers are presented with strong
Innovation impacts the cost of production as well. Even the innovation helps in lowering the cost of production and making economies more efficient – producing more outputs with the same number of inputs. Technology affects market structure. In today’s market world, technology advances more rapidly because individuals gain incentives, in the form of profits, to discover new and cheaper ways of doing things. Even the dynamic efficiency refers to a market’s ability to promote cost-reducing or product-enhancing technological change.
For instance, it can make use of technological advances to better its products and win more customers. It can also use marketing strategies to increase awareness to the customer. The company makes use of high skilled human personnel in its operations (Coyne, 1996). This way, it is able to produce good quality products and better services. The main weakness lies on the external factors such as government regulations and culture of the people.
Countries with failing economies find it hard to trade or attract investment. IMF loans increase economic stability, helping those countries to participate in global trade. The World Trade Organisation (WTO) regulates the rules of trade between countries. It’s designed to reduce barriers to trade between countries by setting up agreements where tariffs on trade are either reduced or removed. This increases trade between countries which increases interaction and globalisation.
This will allow different parts of the world to enjoy merchandise that is specific to one country. Throughout the past it has been proven that by introducing industries’ and the use of globalization has strengthened a country’s economy. I am a pro economic globalization because I feel that we need to change the way of the past if nothing seems raise the economic standards. Hopefully we will be able to realize that economic globalization is working so we can help countries quickly and efficiently. Economic globalization has attracted much debate throughout society today.
However, there are advantages and disadvantages of international trade in the simulation that cause the world’s economy to fluctuate and leave certain countries astray. One of the advantages to international trade that I found for countries was the monetary gains and having the ability to keep their own markets honest causing the local producers to improve its goods for the reason citizens have more choices available to them. The disadvantages of international trade have to deal with countries of higher power that try to take advantage of smaller countries by swindling their government into unorthodox trading during a crisis within those countries. Another disadvantage is the possibility of local producers becoming weak, causing the unemployment rate to rise because local producers are unable to compete with international
East Asia and Latin American Models There are stark differences between developed and developing countries, and those differences, are only growing wider. Developed countries have the capacity for industrial growth while developing countries depend on the developed countries to help establish their industries. Developed countries have strong economies and are capable of supporting themselves; developing countries have weaker economies and rely on the developed countries and other international organizations to support them. To go from developing country to developed country is a difficult task, and there are generally two competing models for industrialization in the developing world, the East Asia and Latin American models. Latin America pursued an import-substitution industrialization (ISI) strategy; East Asia pursued a more export-led growth (ELG) path to development.
Dr. Ramesh Mishra (1999) states that “Globalization refers to a process through which national economies are becoming more open and thus more subject to super national economic influences and less amenable to national control.” Globalization brings both benefits and problems for all. It affects communities and individuals and can both enhance and limit freedom and human rights. We are all global citizens, meaning we are connected in some way around the world. Not all the food, furniture and our other needs and wants are produced in S.V.G; they come from all
Thus advertisements help to orient individuals in society by providing them with images with which they can self-identify.” 1 The pervasiveness of branding brings up the question of how does it shape global culture and identity? Through the exchange between brands and consumers, global corporations create their identities and influence cultural identities around the world, while at the same time being defined by them. Whether this is a positive or negative or both depends on an individual’s perspective of what globalization is doing to marketing. Globalization & Corporate Identity Globalization is used to describe the phenomenon of the world becoming increasingly interconnected in the past several decades. According to David Held’s A Globalizing World,2 it is marked by regionalization, stretched social relations, intensification of flows, increasing interpenetration, and global infrastructure.