An economy is the activities related to the production of goods and services within a specified geographic region. This can be on a national scale with the trade and services remaining within a country, but equally, if countries trade goods and services with each other, their economies interact on a global scale, fundamentally known as globalisation. This worldwide interaction of economies is else known as the global economy, with NICs and TNCs play a primary role in changing how it operates. An ‘NIC’ (newly industrialising country) are countries whose economies have not yet reached Developed Country status but have outpaced their developing counterparts in economic terms. The reason for the economic growth in NIC’s is mainly due to the undergoing of export-oriented trade or ongoing industrialization, seen in countries such as China, India, Mexico and Brazil with the experiencing of rapid industrialisation due to the export of goods.
I think that if we want to talk about globalization first of all we must define what the globalization is. Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. Because of its varying subtleties, globalization is often a difficult phenomenon to describe comprehensively. However, one aspect of globalization that tends to be most apparent in almost every facet of life is the emergence of technology particularly the way in which technology is globally integrating the peoples of the world.
The main purpose of chapter one explains globalization and how it impacts our everyday lives. Chapter one the author describes the elements of globalization and international business. There are many key questions in the chapter that were answered to understand globalization. In this chapter analysis I will discuss the key concepts of globalization. Globalization makes countries interdependent to one another.
Globalization is the growing interdependence of the world's people that involves the integration of economies, technologies, and cultures. It is described as the increased movement of people, knowledge and ideas, and goods and money across national borders that have led to the increased interconnectedness among the world. Globalization is often thought of in economic terms but as we know there are three major components implicated with this idea including: economics, politics, and cultures. Some associate globalization with modernization whereas, it is perceived that there is an alteration of traditional societies into Western industrial ones. This challenges us into a debate of whether or not globalization is positive or negative.
Everyone has such negative things to say about Western influence but if one of these outside forces overthrew Western Civilization, people would be saying the bad things about that society as well. It is true that the way Columbus conquered the new world may have sparked inter-cultural
Economic globalization has attracted much debate throughout society today. So many tactics are being tested to try and raise economies in underdeveloped countries and this is just one. Some appose to the idea while others are extremely excited about it. There have been both pros and cons seen when it is put in action but overall the pros out way the cons. I predict that we will be seeing more and more economic globalization as our nation progresses and hopefully we can bring the underdeveloped countries with
Moreover, globalization kicked off after the end of Second World War since its during that time that leaders felt the urge to break down the borders with the aim of enabling trade between nations. Thomas L. Friedman has examined the impact of the "flattening" of the world, and argues that globalized trade, outsourcing, supply-chaining, and political forces have changed the world permanently, for both better and worse. He also argues that the pace of globalization is quickening and will continue to have a growing impact on business organization and practice. With globalization the world wild becomes a small village or city especially with Internet. Globalization carries numerous positive effects and in same time has negative effects.
The internet has completely changed the way today’s society views the world around it. Whether it’s a Facebook status, or a firsthand news story from halfway around the world, the internet has allowed people to have their voice heard on a global level, and has allowed them to share information in a much faster, and more efficient way. The internet has become a vital part of many countries economic infrastructure, and has allowed for the start-up of a multitude of different businesses. It has also given people the ability to have freedom of speech in places where saying the wrong thing could mean life in jail. Although internet access allows for a much more connected global society, multiple governments and private corporations plan on denying this for their own personal gain.
Even though it started with furniture of Swedish style at the beginning, it now provides various types of furniture for worldwide customers. The outcomes of globalization have been visible through several decades. Despite the world economy crisis, IKEA gained $7 billion of profit in 2011. One of the reasons that contributed to its global success was global sourcing of component from all over the world. Because of the high cost of branching new stores in different regions, IKEA first decided to transfer production to lower-cost suppliers in Poland.
During the last few decades, and especially after the collapse of Soviet Union, the worlds economic and social status has drastically changed, bringing national marketing and production onto the international scene, starting a new age of Globalization. Becoming blind to cultural and geographic differences, modern businesses seek common goals to increase the economic development whether through labor outsourcing, off shoring businesses or cooperative production. The globalization of course plays an important role in the modern welfare, since it is significantly beneficial not only to the economics of developed countries but also to such developing countries as India, China and Korea. However it also brings many problems- not all countries are able to integrate in the world’s economical scene and many local businesses find themselves out of competition which eventually leads to even more stagnant poverty than before. To get out of this vicious circle many people are forced to seek jobs away from home.