Globalization Essay

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.
To achieve perfect globalization it will be of great importance to eliminate the barriers between the countries. This can be attained by eliminating the differences in tariffs which will benefit the businesses of all the countries of the world. Tariffs don’t bring any benefits to the countries that they impose them, and for this reason they won’t help in realization of globalization. With tariffs reduction and the enhancement of globalization the consumers will have more choice on products and wider price range for the products. This is because reduction in tariffs results in reduction in trade barriers which is expected to expand the global economy. The elimination of tariffs will make the businesses to export freely and import freely, there will be an increase in the quality of goods and services that are produced in...

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...t have merged together, the fixed costs are distributed over a large volume of production causing the unit cost of production of the firms to decline to big levels (Ghose, 2003: 29 paragraph: 4). After the firms have engaged themselves with merging and acquisition due to globalization there are other benefits that may arise. These include production facilities, management functions and management resources and systems. A foreign company can bring these benefits to the firm that it has acquired or merged with. There is also another important benefit that may arise that when global firms merge or are involved in the process of acquisition, there will be diversification of risks. When there are unfavorable conditions in one country affecting the market, the other country can have very favorable conditions and there will be no pure loss (Carr, 1999: 417 paragraph: 2).