What is Globalization?

The dynamicity of the modern business world is revealed in the increasing mobility of the world trade and also the changing business environment as well (Evrard, 2017). The traditional systems or models of business are no longer effective in the present business world because of the changing trends and also the expectations of the customers (Evrard, 2017). The various business enterprises thus make the use of diverse kinds of new and innovative ideas for the process of their business. The process of globalization is this particular context becomes very important and the various organizations take the help of this particular construct for the process of their business (Mowforth & Munt, 2015). In addition to this, it is seen that the effective use of this particular concept has helped the diverse organizations to mitigate the adverse effects of market competition and at the same time to gain a significant amount of competitive advantage (Mowforth & Munt, 2015). This report will discuss about the concept of globalization and the significant winners and the losers of the same process.   

Globalization refers to process by means of which the various business enterprises develop their business centers in the other parts of the world or develop an influence in the other nations (Wright, 2016). In other words, it can be said that the process also refers to the development of interest for the products or the services offered by a particular business enterprise in other nations of the world (Wright, 2016). The various business enterprises of the world are taking the help of this process for the expansion of their business in the other nations of the world (Coker, 2014). It is significant to note that although the process of globalization is a very old one yet the process gained prominence only in the 18^th century after the Industrial Revolution with the improvement in the processes of transport and communication (Coker, 2014). Many experts are of the viewpoint that the process of globalization has significantly improved the prospects of the various business enterprises and at the same time has much mobilized the global trade as well (Cavusgil et al., 2014). An interesting fact to note about the process of globalization is that the effective use of this particular process within the last 10 years has increased the world revenue by almost 15% which is more than $1 trillion (Evrard, 2017).

The process of globalization has acted as a blessing for the various First World Countries of the world like USA, Australia, UK, Belgium and others (Cavusgil et al., 2014). Taking the help of this particular concept the various industries of these nations are expanding into the other developing or emerging business markets and thereby improving the financial prospects of their parent nations. It is a reflection of this particular fact that the industries like IT, retail, fast food, tourism and others within a very short time have become one of the major revenue generating ones of the world (Cavusgil et al., 2014). It is significant to note that these industries contribute in a significant manner towards the economic growth of the nations to which these organizations however they offer very little to the economy of the nation in which they are expanding into.  

Benefits of Globalization

The process of globalization has contributed in a significant manner towards the growth of the international trade as well as the world economy. Furthermore, the process has at the same time helped the various nations of the world like United States of America, United Kingdom, Australia, Belgium and others (Rupert & Smith, 2016). As a matter of fact the nation of USA has been able to become the largest economic bloc of the world following this particular process (Rupert & Smith, 2016). According to an article of The Forbes Magazine (2018), Belgium is one of the most globalised nations of the world with more than 95% of the business enterprises of the nation are taking the help of the process of globalization and thereby operating in the diverse nations of the world. Furthermore, there are various business enterprises like McDonald’s, Starbucks, KFC and others which have gained a significant amount of success in the recent times taking the help of the process of globalization (Krugman, 2017). In short it can be said that the process of globalization had transformed the entire world into a small community wherein the organizations from one part of the world can indulge into trade relations with the other nations of the world (Krugman, 2017). It is a reflection of this particular fact that the nations whose business enterprises are taking the help of the process of globalization have been able to gain a significant amount of economic success in the recent times. Moreover, in addition to the economic benefits that the process of globalization provides to the parent nations there are other benefits as well like technological ones and others which further help in the process of development of the parent nation (Krugman, 2017).

In addition to the positive benefits that the process of globalization provides there are various negative aspects as well and it is commonly seen that the national economies of the various nations of the world have been affected in an adverse manner because of the process of globalization (Homann, 2016). The majority of the nations which are suffering from the adverse effects of the process of globalization are the ones which belong to the genre of the Third World Countries or the developing countries of the world (Homann, 2016). In this particular context mention needs to be made about the developing countries of Bangladesh, India, Sri Lanka, Philippines and others (Cramer, 2017). It is significant to note that the majority of the countries of the world like USA, Australia, UK and others outsource the majority of their manufacturing process to these nations (Cramer, 2017). The concerned companies taking the help of the poor economic framework of these nations provide below par salaries to the individuals in comparison to the ones that they would have to provide to the ones of their own nation (Cavusgil et al., 2014). These individuals because of the under developed economic system of their nation had no other alternative but to take the help of the below par jobs that are being provided to them. These outsourcing policies have helped in a significant manner to improve the prospects of the concerned organizations and the nation to which they belong but they in turn do not contribute in any positive manner towards the economy of the host nations (Cavusgil et al., 2014). In addition to these, they have further increased the competition level in the host nations and thus they are finding it difficult to sustain themselves in the business market (Cavusgil et al., 2014).

Conclusion

To conclude, the process of globalization has affected the prospects of the business world in a significant manner and to a great extent has changed the entire business world. There are various nations as well as business enterprises which have been able to derive diverse kinds of benefits through the effective use of the concept of globalization and in turn have been able to derive significant economic rewards through the use of the process. However, on the other hand, there are various countries which have been affected in a negative or adverse manner because of the widespread use of this particular process in the business. In this particular context mention needs to be made about the various developing nations whose business markets have been captured by the various business enterprises of the First World Countries and thereby leaving very little scope for their own business enterprises in the business market.

References 

Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia.

Coker, C. (2014). Globalisation and Insecurity in the Twenty-first Century: NATO and the Management of Risk. Routledge.

Cramer, J. (2017). Corporate Social Responsibility and Globalisation: an action plan for business. Routledge.

Evrard, A. Y. (2017). Modernity at Large: Cultural Dimensions of Globalisation. Macat Library.

Forbes.com (2018). Forbes.com [online] Retrieved from https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-globalization/#5d448dd3ccce

Homann, K. (2016). Globalisation from a business ethics point of view. In Globalisation and business ethics (pp. 15-22). Routledge.

Krugman, P. (2017). Crises: The price of globalisation?. In Economics of Globalisation (pp. 31-50). Routledge.

Mowforth, M., & Munt, I. (2015). Tourism and sustainability: Development, globalisation and new tourism in the third world. Routledge.

Rupert, M., & Smith, H. (Eds.). (2016). Historical materialism and globalisation: Essays on continuity and change. Routledge.

Wright, S. (2016). Language policy and language planning: From nationalism to globalisation. Springer.