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Globalization and its impact
Globalization and its impact
Consumer buying behaviour and globalization
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Globalization is a process that integrates a global network of economic, political, social, and cultural interdependence on a worldwide scale. This international phenomenon unlocks new pathways for a universal marketplace that permits the flow of economic trade of capital, goods and services, financial investments, and distribution of resources across different countries and institutions. With the rise of regional economic integration blocs such as NAFTA, ASEAN, and Mercosur, manages and facilitates a smoother flow of free international trade and financial investments, reducing the barriers and policies amongst member countries within the same trading bloc. There is also a major growth in financial flows, allowing countries and institutions to do foreign currency exchanges. The free flow of capital also authorizes foreign transactions around the world such as foreign commercial and investment banking, and foreign bonds. By having access to larger markets, consumers are exposed to international commodities, thus, tastes preferences and lifestyles are also converging across different countries. However, at the same time there is a negative cultural impact surfacing as well. As commodities become standardized to meet a wider range of audience, unique cultures, traditional values and lifestyles are also becoming overshadowed. What makes us unique seems far from unique when everyone carries the same products. And as global markets continue to expand, the competition also becomes fierce. Companies are offshoring to developing worlds, seeking new ways to reduce cost by shifting productions and manufactory facilities overseas where cost is significantly low. As production and services shift abroad, so are we as consumers, who will also f... ... middle of paper ... ...and low paying wages in certain parts of Asia and Africa may seem unethical, but some laborers are blessed to even have a job. Furthermore, critics may also stress that market liberation may cause us to lose touch with our national identity, but without it, we will never be moving forward. Even though there are pros and cons regarding globalism, we cannot deny the fact that it opens up new doors for businesses and consumers, like myself, to explore the other side of the world. In a sense, divulging to similar living patterns can help us learn more about different cultures. Consumers in Tokyo, for instance, can now have a taste of our American culture by taking a sip of Coca Cola. We can enjoy a hint of Tokyo by having Sushi at a local restaurant. Without globalization, we will never taste the wonders of the world, or better yet, we will never know they ever existed.
The term globalization varies from person to person. A consumer typically associates globalization with a store producing more goods, stocking inventory, and updating their styles, however; an anthropological definition of globalization is, “the worldwide intensification of interactions and increased movement of money, people, goods, and ideas within and across national borders,” (Guest, 19). Globalization of the clothing industry is about the “search of cheap, reliable labor to meet the industry’s tight margins,” (Timmerman 7). Timmerman suggests that globalization change our lives and can be for the good or for the bad (8). Globalization is often viewed as a mutual and beneficial process for those involved, because it is perceived as helping those out who are in poverty get a job and make money for their families. On the other hand, it is viewed as a horrific way to abuse individuals in different countries by paying them tremendously trifling wages, working in strident conditions, and overall being treated inadequately by the factory owners. United States corporations exploit different countries around the world such as, China, Indonesia, Mexico and
Naomi Klein’s No Logo states that corporations have been championing globalization using the reasons that globalization allows U.S. consumers to benefit from cheaper products produced abroad, while developing nations benefit from the economic growth stimulated by foreign investments. The generally accepted belief is that governmental policies should be established in favor of the corporations to facilitate the trickling down of corporate profits to the end consumers and workers abroad. Klein, however, contends that globalization rarely benefit the workers in the developing countries.
The first decade of the 21st century has seen globalization and identity emerge as the most critical challenge to society. Globalization has seduced consumer appetites. This has led for those consumer identities to be exposed to global advertising focused on the designer car, the latest clothing or the newest piece of architecture.
On the other hand, opponents question if the benefits of globalization compensate the created downsides. In their opinion, globalization has manifested unemployment, poverty and marginalization. Additionally, it has been one of the key drivers ...
The Millennium report advocated that the greatest challenge we face today is to ensure that globalization becomes a positive force for the entire world's people, instead of leaving billions of them behind in foulness. Inclusive globalization must be built on the great enabling force of the market, but market forces alone will not achieve it. It requires a broader effort to create a shared future, based upon our common humanity in all its diversity. Today the most significant changes in the world economy over the past decades are the upsurge in globalization of markets and industries. There are numerous forces that have greatly contributed to the rise of globalization, factors such as reductions in multilateral and regional trade barriers, mergers and acquisition that enhance assess to new markets and competition. Globalization can be claimed to have major and crucial positive implication on the businesses today.
4. Discuss the forces that are leading international firms to the globalization of their sourcing, production, and marketing.
“Red is a positive color in Denmark, but represents witchcraft and death in many African countries,” (Understand and heed, 1991, p.1). Simple understandings, such as this one, can make the difference in a business’ success or failure in a foreign country. Various countries have different customs and beliefs that need to be accustomed to when business are to be successful. American businesses especially have difficulties with this concept. “At times in the past, Americans have not had a good track record of being sensitive to cultural distinctions,” (Understand and heed, 1991, p.3). Perhaps this is because America is made up of so many different cultures that American people have become so used to easily adjusting to each other’s differences that they forget that other cultures are not as flexible. Today, more American’s are becoming more sensitive to the differences of other cultures. This sensitivity and understanding has come with a price, after a long string of business failures. It is not until a business fails miserably in another country that they see the adjustments that should have been made in order for their success to be a possibility. With an understanding and sensitivity to the customs and beliefs of other cultures, it is possible for successful businesses that have originated in western cultures to also be successful in foreign countries as well.
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.
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.
Despite the facts that many of the most powerful markets on the planet operate within the capitalistic principle of free trade. Despite the fact that Western Europe is now border-free within its bounds and uses the same common currency. And despite the fact that the USSR s Iron Curtain has fallen more than a decade ago, the people of this world have never expressed their need to belong to a national identity as much as they do today. In response to international organized terrorism, mass media and political pressure, the average consumer today is looking for security, truth, and for a product tailored to his need. A product that reflects the international society we live in today but also carries the cultural identity of the consumer buying it. Or at least carries one that can be compatible with it.
With every passing day the world is shrinking, and the globalization process is taking place. Advances in communication, transportation, and computer technology have all played a role in making the world a smaller place. With the right equipment, people can talk to friends and family from the other side of the world. Traveling from America to Europe, which once required days at sea, now only takes hours in the air. Computer networking and fax machines allow world businesses to conduct negotiations within a matter of seconds. Images and personas such as the McDonalds’s golden arches and Mickey Mouse are recognized worldwide. When Saddam Hussein was captured, nearly every country knew about it within a matter of hours. Yet, while globalization is taking place, it is not doing so without dispute. Many countries, in fact, feel threatened by Western culture and consequently, are acting out to preserve their own identities. Differences in currency and standardized measuring units indicate hesitancy and possibly even an inability for people to accept the conformity of a singular global society. Also, characteristics of different cultures are in such a way unique that to alter them or blend them into other cultures would, in some people’s opinion, destroy both of them. After all, one would not expect to find tacos served in Italian restaurants, nor would one expect pasta and breadsticks to be the major selling items in Mexican restaurants. So, while globalization is taking place on different levels, fundamental differences in culture and pride in one’s own heritage both exist as strong forces preventing the emergence of a homogenized world society.
Globalization plays a massive part in my life as it does in everyone’s lives. Every day the world is getting smaller, between technological improvements and peoples interest in these technologies it is easy to see why this is happening. In this essay I have only shortly touch upon some of the places where globalization has affected my everyday life. From shopping as Asda to meeting people on the other side of the world to discuss my dissertation ideas globalization has had a positive affect on my life. The fact that I can walk down a street in Coleraine or Sydney and see similar shops and food outlets is a positive thing in how our lives are intertwined through out the world.
Effective communication abroad can be difficult to achieve because of the lack of understanding between different cultures. But there are many companies out there who are effectively promoting their products in multiple countries. So, how do they do it? To be able to communicate abroad takes excellent leadership skills from multiple parties.
Using 1997 financial crisis and other examples, discuss how globalization is important to the modern business journalism. Introduction
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.