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Globalization impact on international business
The impact of globalization on international business
Globalization and its impact on international business
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Our world has irreversibly become a smaller place due to globalization. There is more open trade between countries for consumer and industrial items. Technology has become so advanced that one product may have parts manufactured for it from three different counties.
As fiscal pressure causes outsourcing to increase, there is a greater need for standardization in manufacturing than ever before, from demands for high quality raw materials like steel and titanium produced with precise, consistent quality, to stringent tolerances in intricate components (ISO 9000:2008).
ISO 9000 is part of a group of standards that details the conditions required to meet an organization quality standards. ISO stands for the International Organization for Standardization. Headquarters in Geneva, Switzerland it is more of an office than a headquarters with little staff. This is due to the fact that ISO is more a coordinated effort of technical teams or committees. ISO 9000 management system came from standards were developed from similar individual national standards from around the world around 1970’s. Canada used Z299, AustraliaAS3900 and the military used Mil-Q_9858A. In the early 1980s the British used a standard for quality that would be reviewed by international committees and would become the founding standard for ISO 9000. ISO 9001 standard benefits the global marketplace by standardizing the industrial and technical specifications of goods and services by creating more capable manufacturing and production industries and to reducing international trade barriers.
Compliance to ISO 9001 gives consumer’s confidence that goods and services are of the highest quality, safe and environmentally friendly. ISO 9001 has more than 150 affilia...
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...l organizations who are also members of ISO 9001 (Gordon, D.K. 2001).
Organizations rely on customers it is imperative that their needs are understood and expectations met. One way of ensuring customer loyalty is to line organizational goals with customer needs. A principle of customer focus is the management of customer relations through assessing their satisfaction and acting on results systematically. Leadership’s goal is to communicate their requirements throughout the company. Top management should create clear objectives, purpose and unity. ISO 9001 establishes standards for continual improvement through the management of processes, effective analysis based decisions, incorporating involvement from all level of an organization, and understanding customer needs. ISO 9000 enhances trust and standards among suppliers and customers worldwide.
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Our global world is being more connected as we become integrated politically, socially and even economically. Due to the Bretton woods agreement, different countries have been economically dependent on each other in fear for war to erupt. From then on different organizations and policies tied more countries into being economic globalized. This economic globalization had then given us many opportunities in trades and more access to natural resources in other countries. Unfortunately, there are some negative effects that are brought to less developed country. Overall, many people believe that economic globalization does a great work on accumulating our economy and our quality of life.
ISO 9001 is a quality management standard that helps a company or an organisation to continually monitor quality across all operations. As an internationally recognised quality standard, it outlines ways to achieve, as well as
The term 'globalization' has been subjected to a variety of interpretations. Though at its simplest it can be seen as how the world has become integrated economically, politcally, socially and culturally through the advances of technology, communication and transport John Baylis et al. (2011).
When reading Virilio’s Crepuscular Dawn one must define each concept to fully grasp the theories proposed in his book. Virilio states “globalization is the world becoming too small, and not too big” (p. 89). For one to thoroughly evaluate this quote one must first understand: What is globalization and what does it involve? How does speed contribute to this occurrence? What is speed? How this lead to escape velocity? What does escape velocity entail? And finally, what does globalization lead to and what danger does it pose? Only after defining these terms can an individual discover is the world is becoming enclosed.
Globalization has caused the world to change. Our country, China has been dramatically changed by globalization. Our people have moved to cities, and our industry has exploded. We have had huge advances in technology along with education improvement. Despite the fact that China has changed so much, there are still many issues that plague it. China faces serious environmental concerns. New diseases and viruses that are not indigenous to China can cause a wide range of sickness in the new area. Despite some of the the improvements in China that are a result of globalization, the negatives that globalization has brought to China are more than the benefits.
As Thomas Friedman explains in his book “The World is Flat”, globalization started “when Columbus set sail, opening trade between the Old World and the New World.” Afterwards, “multinational companies went global for markets and labor,” and around the year 2000, individuals were the ones who got into the global world. Today, individuals and small groups easily enter the global market, collaborate, and compete - a process described by Friedman as “the flattening of the world.”
...nging eating habits, food production must be optimized at all times to reduce financial costs and at the same time increase the nutritional value of food. With this comes one of the most significant standardization ISO has created. The Food Safety Management System, commonly known as ISO 22000. This system introduces methods which may be used by different countries to allow them to follow the standard setting for a certain food production.
The total quality management is valuable asset for Longxi providing it was an competitive edge over most of other competitors. However Longxi needs to improve the quality control system further to meet industry accept standard, i.e. ISO9002 to expand further into the overseas markets.
If we look at the world today, it is a lot more complex than what it used to be 50 years from now. It is more complex and various elements are at play. With globalization, national boundaries may have disappeared but we are much more different from each other. It is harder to reach a point of contention between the nations, and the disappearance of the necessity of physical presence has complicated things even further. There are world powers, there are developing countries and there are developed countries.
(Bilton et al 1996:5) The process of globalization has certainly had many changing effects to the world we live in; it has also changed the way many factors operate. Globalization is said "to have transformed the structure and scale of human relationships that social, cultural, political, and economic processes now operate at a global scale with a consequent reduction in the significance of other geographical scales. "(The Dictionary of human geography 2004:315) Globalization has had both positive and negative effects on a local, national, international and global level. Globalization often brings benefits at one level which cause negative effects at another, these results and the scale at which they manifest are often uncertain and unpredictable.
9. Lofgren, G.Q. "Quality System Registration: A Guide to Q90/ISO 9000 Series Registration." Quality Progress, May 1991, p. 37. 10.
Products are not standardized and vary by country in terms of type, packaging and specification. This increases production time, production costs, lead tim...
. ISO 14001 is a management standard, it is not a performance or product standard. The underlying purpose of ISO 14001 is that companies will improve their environmental performance by implementing ISO 14001, but there are no standards for performance or the level of improvement. It is a process for managing company activities that impact the environment.
The interrelation and the integration of people, companies, governments and nations can be described as globalization. Globalization was produced due to international trade and investments with the help of technology. In today’s world, globalization is very essential. Advancements and technology help the process needed for globalization. Many countries and organizations similarly are affected by this phenomenon, on the other hand, smaller countries have benefited from larger contributors to the world’s market.
"Globalization is a process of world shrinkage, of distances getting shorter, things moving closer. It pertains to t...