In his article on ‘The Globalization of Markets’, Levitt argued that there has been a shift of market preferences, and that customers now prefer a low-cost approach regardless of their wants. He also stated that in this modern era, companies should avoid multiple customization markets, which leads to higher production and manufacturing costs and instead, should focus on standardization of products, demand and markets. Levitt brought up the example of a Hedgehog and a Fox- the global company and the multinational company. He encouraged businesses to be like the hedgehog because ‘the hedgehog knows everything about one great thing’. This can be witnessed in how global companies operate by treating their market as a single entity and by doing …show more content…
It is extremely important for a company to first evaluate its internal strengths and weaknesses, external opportunities and threats of its business before considering the possibility of globalizing. Globalization is a complex compound that ties to several far-reaching implications, which if not identified or considered during the planning phase, could result in detrimental consequences. The definition, according to Levin Institute (2015) states that ‘Globalization is a process driven by international trade and investment and aided by information technology.’ and ‘has effects on environment, culture, political systems, economic development and on human physical well-being in societies around the world’. This brings the topic back to environmental analysis- PESTLE analysis, which encompasses the political, environmental, socio-cultural, Technology, legal and economical aspects of the business (Gupta, A. 2013). Those aspects that define globalization could also end up being the consequences of globalization. For example, the cultural or religious beliefs of a country may not support the idea of globalization. Take the case of the pork burger offered by McDonald’s Japan, it is impossible to globalize the same menu items across the world due to Muslims’ beliefs. Another example would be what Levitt had brought up on the case of Japan exporting left-side drive cars to the United …show more content…
The first point talks about how phasing out of narrowly established firms and industries could potentially mess up the pre-existing variety of businesses and thus affect the ‘interwoven fabric of private initiative throughout entire geographic regions’. Even though there could be benefits in encouraging the expansion of certain industrial firms due to national or global economic factors, it could also kill other historically significant firms by accident. This is an example of a far-reaching implication mentioned in the earlier paragraph. The latter potential problem covers the varieties of offerings to consumer base. Imagine in a world where the entire population is dominated by that few brands or products lines, how will the human’s lifestyle and habitual change? Humans will lead a monotonous life under a controlled environment, chances of a new trait operating in the market will be tougher and there will be stagnation in innovation due to the limited offers in the market. In reality, competition is benefiting the human population because companies compete to offer the best available product at a value-for-money cost. Without competition, there will be no additional or better benefits
In his book, Globalization and its Discontents, the author provides an enthralling perspective on the shadow side of globalization. Nobel laureate Joseph Stiglitz’s experiences as the Chief Economist of the World Bank and the Chairman of the Council of Economic Advisers in the Clinton Administration has provided him with an interesting vantage point to understand the inner workings of the IMF, the World Bank, the WTO and also the governments and finance ministries of many countries across the world.
Regarding “The Age of Globalization” by Alan Brinkley I thought that the reading selection provides good details on timeline of significant events that significantly affected the global economy. The reading selection from the American History textbook starts off with a summary of event of September 11, 2001, and the role they played in the changes within global economy. On the next page we are presented with a timeline of events that will be described later in the reading selection. The purpose of this section is to illustrate how each of those events contributed to the world we live in today, particularly their influence on the global economy.
The idea of the globalisation of Australian businesses, the process where businesses develop themselves internationally is one of the main issues in our current society. The concept of globalisation has occurred due to many factors, such as reduced trade barriers, a reduction in tariffs and quotas, new developments in technology and also new innovations in transportation technology. These factors that have caused globalisation can result in many consequences, both positive and negative. These consequences are free trade caused by a reduction in tariffs and environmental costs such as pollution caused by factories and greenhouse gasses causing global warming.
Globalization is currently the most influential aspect of business today. Look around and inspect some common items around you: televisions, automobiles, refrigerators, vacuum cleaners, even the clothes on your back. Chances are that every single item you see has been impacted by globalization. Whether the item has foreign parts or is produced entirely outside of your country, it has been directly impacted upon by globalization.
With the proliferation of the internet international Business transactions are more common today than ever. Globalization is now a key factor when creating a business strategy for most companies whether they are small family own businesses or huge corporations. Globalization however does not just involve selling a product in other countries. There are legal and cultural concerns that must be addressed. The legal aspects are fairly simple because in most places the laws are spelled out. It's the local customs, and regional way of doing things that can be tricky. Research on globalization has shown that it is not an omnipotent, unidirectional force leveling everything in its path. Because a global culture does not exist, any search for it would be futile. It is more fruitful to instead focus on particular aspects of life that are indeed affected by the globalizing process. (1). In this new economy, as it has been in the past, it will be the people not the machines who will determine a company's success. Having an effective Human Resource Management team that effectively analyze your company's current and future personnel needs is key in any business organization.
With the advent of the Internet, decreased shipping costs, and the removal of trade barriers, the world market has shrunk in such a way that everyone can be a player. While many businesses thrive solely on serving a small local area, a globalized company has the benefits of increased customer markets, gross production, and brand awareness. Take for example Coca-Cola; this multi-national corporation offers products in countries all over the world, operates in over 200 of those countries with the help of its franchisees, and is the most well-known beverage companies. It is interesting to note however, that as positive as globalization may seem, there are many negative ramifications and a large population of detractors to this movement. While increased product availability is good for profits, if a local market is inundated with imported products, locally grown or manufactured items may be squeezed out, to the detriment of the local economy. Although it is cost effective to have your product produced in another country with low wages, you are essentially taking away jobs from the people of your own country, negatively impacting your national economy. However, if you manufacture your products in a country with higher wages, you must increase your products’ prices which may be harmful to your profits. While maximizing your companies profits is always of great importance, it is essential that you weigh the pros and cons of globalization and its effects on not only your company, but the areas in which you wish to spread.
The process of globalization is the spread of business, ideas, beliefs, and cultures throughout the world which results in an increasingly connected world, but may also lead to the loss of culture. As an illustration, the McDonald's restaurants. These are restaurants which have spread throughout the world, although, they have had to accommodate to the diets of the countries in which they had established themselves in, they have taken the idea of the fast food industry throughout the world. The spread of ideas is a useful tool since it has the capacity to open other societies. Ideas formed from the corporation of different cultures and societies are able to encompass different perspectives. The differing perspectives are able to create solutions to worldwide issues, which are able to facilitate the advancement of the world as a
These economic terms refer to when either a single company or several companies dominate and hold complete control over the production and distribution of products in a particular industry. Minor outlets in this situation would not exist. One of the most crucial issues that these circumstances would lead to is a decline in democratic and societal viewpoints. The media conglomerates become the main voice for all decision making because there is no more competition. Patricia Lancia of Wilfred Laurier University wrote an article that was posted in an archive for Ohio University that focused on the reduced accesses that monopolies create for communities.
As Joseph E. Stiglitz mentioned in earlier chapters of Globalization and its Discontents, the major positive outcome of Globalization is the close integration it created between unexpected countries. The introduction of Globalization showed the wall between the developed and undeveloped world crumble and started the working economic relationship between the two. Due to Globalization, any country could become involved in the transfer of goods, services, capital, information, and even people.
It is widely accepted that there are a lot of benefits globalization brought to our life. Firstly, advanced transportation system makes different places of the world closer. Considerable amount of exciting tourists can visit remote villages in the corner of the earth. Secondly, new telecommunication, such as internet and TV, makes people’s common life colorful. Fans in China who are interested in Manchester United can also share their joy with their counterparts in United Kingdom, when the team won a game. Moreover, we can buy the popular products of high quality made in other countries, such as automobiles of Volkswagen and furniture of IKEA. Finally, globalization can lead to cooperation in trade between different countries. Even though globalization can bring so many conveniences to us, we still worry about its severe negative aspects.
Globalization is the dominant force by which the world has become interconnected significantly as a result of extremely increased trade and decreased cultural differences. Globalization has made crucial changes in the production and trade of goods and services. The giant companies are now multinational corporations with subsidiaries in many countries. They are no longer national firms with their operations limited to the boundary of just one country. Such companies’ growth and operations are not constrained by any geographical, economical or cultural boundary. One of these multinational corporations is “Nestle”; that has gained world-class recognition in recent times. Nestle has made significant use of globalization in the last decade in the following manner-
Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.
The process of globalization allows the global market to include products and services from all the companies around the world, including all the investments that is across national borders. Indeed, many American companies have taken their merchandise, manufacturing and services to invest in other countries. However, this has produced a negative effect in the global economy. The American companies
Globalization is the increasing interconnectedness of people, places, and cultures throughout the world today. The effects of this homogenizing process that we call globalization can be seen in all aspects of life. From McDonalds being in almost every country, to the majority of North American clothes being made in periphery countries, to the technological ability that allows us to instantly communicate with people anywhere in the world, the effects are everywhere. Economically today, globalization has had both positive and negative effects around the world, with many similarities to colonization. Globalization has also led to increased poverty amongst the global periphery, and a specific group of winners and losers within this process of globalization.
Globalization has been a start of a new modernized era in history. The source states that as an individual you are given prosperity, stability, and also predictability, and also points out that it helps developing countries modernize and catch up with developed countries, and also reduce poverty since new businesses are formed allowing more employment in the country due to the subsidies that wealthier countries give to them. The person who wrote this source is a pro globalist, and has probably experienced the prosperity that was given to them because of the global trading system. His perspective on globalization suggests that globalization is the key to advancing technology, good relations between countries, and is beneficial event in history. One should embrace the global economy as it creates many roads to achieve your goals in your life, and also for the weaker countries that needs support, but to a degree that the government can intervene with the market.