...a war against each other since each got its McDonald's.” This quote of Thomas L. Friedman, a well-known US-American foreign affairs and globalization expert, shows two of the main results of globalization: Companies that are becoming more international and a world in which the countries start cooperating more and more instead of fighting wars. People start in-teracting borderlessly and politicians and newspapers mention the “world community.” There are mainly three forces that are contributing to the process of globalization: the liberalization of capital movements, the opening of global markets to trade and invest-ment, and the increasing use of information and communication technologies. If you want to define globalization you have to emphasize that Globalization is a multi-dimensional phenomenon that not only touches political, economic, social and cultural spheres of any society but also reshapes the traditional way of studying the “social world and human nature” first. At political and economic level, globalization is the process of denationalization of markets, politics and legal systems, it is the rise of global economy. Good examples for this development are e.g. the European Union or the negotiations of the European Union with the United States to create the biggest trade zone of the world. At the business level, globalization is when companies decide to take part in the emerging global economy and establish themselves in other countries’ mar-kets. They adapt their...
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...Advantages of Globalization: * Resources of different countries are used for producing goods and services they are able to do most efficiently. * Consumers to get much wider variety of products to choose from. * Consumers get the product they want at more competitive prices. * Companies are able to procure input goods and services required at most competitive prices. * Companies get access to much wider markets * It promotes understanding and goodwill among different countries. * Businesses and investors get much wider opportunities for investment. * Pooling of production of different areas can reduce adverse impact of fluctuations in agricultural productions in one area. Disadvantages of Globalization: * Developed countries can stifle development of undeveloped and under-developed countries. * Economic depression in one country can trigger adverse reaction across the globe. * It can increase spread of communicable diseases. Companies face much greater competition. This can put smaller companies, at a disadvantage, as they do not have resources to compete at global scale. According to Lewis Henry, business is a human activity directed towards producing or acquiring wealth through buying and selling of goods. Moreover, the term business means continuous production and distribution of goods and services with the aim of earning profits under uncertain market conditions. In my opinion the statement ‘the study...
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...DISCUSS THE ADVANTAGES AND DISADVANTAGES OF GLOBALIZATION The world as we know it has evolved over the years. From times when communities thought they were alone through periods when they depended on one another through trade to today when it is considered to be a global village. Over time the interdependent nature of countries across the world has gained prominence, hence the coinage of the term Globalization. Globalization is defined as the tendency for the world economy to work as one unit, led by large international companies doing business all over the world (Longman Business English Dictionary 2000). There has been many views concerning globalization. Whereas some people are of the opinion that it is good and are in favour of promoting and supporting it, others see globalization as detrimental to the world in general. This essays will discuss the advantages and disadvantages of globalization. The idea of globalization is an old one and can be traced back to the days when nations fought to create empires. The Babylonians and Romans through the conquest of weaker nations to formed huge empires thereby setting large single economies. These however did not extend to the global level as is happening now. As Ellwood (2001, p.21) noted, globalization is a new word which describes an old process: the integration of the global economy that began in earnest with the launch of the colonial era five centuries ago. The aim of colonization was to establish new sources of raw materials...
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...CHAPTER 16 WORKING CAPITAL POLICY AND SHORT-TERM FINANCING ANSWERS TO QUESTIONS: 1. The need for working capital arises because the normal operating cycle of the firm requires that expenditures for raw materials, labor, etc. be made prior to receipt of the funds from the sale of the output. Funds must be invested during the operating cycle in the various short-term assets that make up working capital--namely, cash, inventories, and accounts receivable. 2. The operating cycle represents the length of time involved in purchasing raw materials, manufacturing the product, and distributing (selling) the product. The cash conversion cycle represents the net time interval between the collection of cash receipts from sales and the cash payments for the various resources used by the firm. The operating cycle is equal to the sum of the inventory conversion period and the receivables conversion period. The cash conversion cycle is equal to the operating cycle less the payables deferral period. 3. A relatively large investment in working capital results in lower expected profitability and lower risk for the firm. The rate of return on current assets is normally less than the rate of return on fixed assets and hence a relatively large investment in current assets lowers the overall rate of return on the total assets of the firm. However, a relatively large investment in current assets also increases the working capital position of the firm...
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...List of Contents 1. Background 3 2. Globalization Problems 4 3. Types of Globalization 5 3.1 Economical globalization 5 3.2 Political globalization 5 3.3 Social globalization 5 3.4 Cultural globalization 5 4. Pro or against globalization? 6 4.1 Advantages of globalization 6 4.2 Disadvantages of globalization 6 4.3 Institutes 6 5. Conclusion 7 6. Sources 7 1. Background Globalization is simply becoming world-wide or making it world-wide. It exists at a lot of places in different sizes. Globalization is to create a good world economy. This could be done by big multinational companies. The reason why I mention the multinationals is because of the influence that they (can) have on the economy worldwide. After all, the world trade plays the biggest part in it. However globalization and the free world trade don’t automatically mean that the well-being is divided all over the world. But where did it start? Who started it and why is it so important for the well being of the world? Well, the globalization existed during different levels/steps. People/companies with power from the past created our current globalize civilization. The first level was when the South conquered the North and applying economical structures. Consequences were the slavery. The second level was the colonization. The North plundered the South, recreated maps and set up one religion and forced their language to be the official language. The third level...
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... help or REGISTER NOW! Bottom of Form |Essay Forum / Writing Feedback / | | | | | 'The Advantages and Disadvantages of Globalization' Top of Form syahid Apr 9, 2010, 10:03am #1 Even though globalization affects world's economies in a positive ways, its negative side should not be forgotten. Discuss. Globalization has contributed a lot to the world today. It boosts countries economies, advance technologies and improve daily life of the people. But in the meantime whether it is a blessing or a curse has sparked much debate. This is because the benefit of globalization always come with the drawbacks. For me, the advantages of the globalization are outweigh its disadvantages. Convincing argument can be made that globalization has led to advancement in technologies. This advancement has built the new world without boundaries. So, the communication can be made with any other parts of the world through technologies such as internet and telephone. Hence, ideas exchange can be done among intellectuals,journalists, scientists or ordinary people. As a result, the best ideas will be spread all over the world which led to enhance the world achievements. However, there are some disadvantages of the globalization. The absence of boundaries of the world through technologies could create harmful to the people. To illustrate, the access to the bad website in internet such as drugs and...
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...Introduction 2.0 Definition of Globalization in Supply Chain Management 3.0 Advantages of Globalization in Supply Chain Management 3.1 Reduced Cycle Time 3.2 Cost Competitive 3.3 Increase Sales, Profits 3.4 New Markets 3.5 Satisfy Shareholders 3.6 Learn From Others 4.0 Disadvantages of Globalization in Supply Chain Management 4.1 Inefficient and Undersized Transportation and Distribution Systems 4.2 Market Instability 5.0 Conclusion 6.0 References 1.0 Introduction Today’s business environment characterized is by faster technological development, shorter product life cycle, and more intense global competition. Having the right product available in the right place, at the right time, enable the company to compete in this volatile market place. This environment forces companies to actively acquire new way to achieve competitive advantage since a firm competitive advantage is now more dependent on operating efficiency and productivity across functional areas of the organization. Companies are going truly globalization in Supply Chain Management. A change in the way of serving and providing customer needs and wants emerge as a result of economy globalization. The role of manufacturing companies has changed from supplying domestic market to supply international market carried out in business network on supply chain. A company can develop a product in Singapore, manufacture in China and its customers throughout the world with globalization in Supply Chain Management...
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...Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 1 Current Multinational Challenges and the Global Economy 1.1 Financial Globalization and Risk True/False 1) BRICs is a term used in international finance to represent assets that are considered to be inexpensive and sturdy, but fundamentally unsound and and incapable of coping with the upheavals now apparent in international financial markets. Answer: FALSE Diff: 1 Topic: 1.1 Financial Globalization and Risk Skill: Recognition 2) Multinational enterprises (MNEs) are firms, both for profit companies and not-for-profit organizations, that have operations in more than one country, and conduct their business through foreign subsidiaries, branches, or joint ventures with host country firms. Answer: TRUE Diff: 1 Topic: 1.1 Financial Globalization and Risk Skill: Recognition 3) Ownership, control, and governance changes radically across the world. The publicly traded company is not the dominant global business organization—the privately held or family-owned business is the prevalent structure—and their goals and measures of performance differ dramatically. Answer: TRUE Diff: 2 Topic: 1.1 Financial Globalization and Risk Skill: Recognition 1.2 The Global Financial Marketplace Multiple Choice 1) A well-established, large U.S.-based MNE will probably NOT be able to overcome which of the following obstacles to maximizing firm value? A) an open market place B) high...
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...Globalization Questionnaire MGT 448 Jim Engstrom Jan 7, 2013 Charlotte Johnson Globalization "Globalization pertains to the conversion towards a more incorporated and interdependent business world. Globalization has many aspects, including the globalization of markets and globalization of production, (Hill, 2004)”. Globalization is required in the entire world. The various hypotheses regarding the meaning of globalization of inspiration beyond the need of globalization’s progress as well as the world of technology will assist promote the requirement for globalization. Communities as well as companies also are influenced by globalization and smaller countries take advantage of the generosity of the members in the largest market throughout the world. A lot of theories presently support the idea of globalization. The rate applicable varies in one country to another. The price is correct, also referred to as the taxes which each country imports and exports. The government should pay a fee. The World Trade Organization (WTO) is accountable for all countries. Absolute advantage backs the idea of globalization; subsequently the idea helps make sure that a country can create a far better item that is more efficient compared to another countries product. To import or export of this item, or for people who use this item in the trade of other services or products. This assists the manufacturing countries to produce items more efficiently. The benefit is that the...
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...Globalization Argumentative Paper PHL/320 August 10th, 2015 Globalization Argumentative Paper The term globalization in view of business thoughts can be characterized as the procedure of reaching out to different parts of the world to build up an inexorably incorporated worldwide economy by using organized commerce, free stream of capital, and the tapping of less expensive outside work markets. Globalization can be useful for business in that it makes working in remote markets more productive. The term great can be characterized as having benefit, point of interest or advantage. In this way, globalization is useful for business in that it advantages the association by expanding benefit in other world markets. (1, Premise) By working on an open business, organizations can impart all the more productively and successfully with their clients and suppliers. This will permit organizations to better deal with their supplies, inventories, and their circulation systems. Organizations can now market and offer their items no sweat and on the same calendar as they would in their nation of origin. (1, Conclusion) Globalization permits organizations to improve business in outside nations by having the capacity to market and offer their items by utilizing facilitated commerce and the free stream of capital. (2, Premise) Another point of preference of globalizing a business is that we can outsource items to different nations to make. Creation of these items will be of comparable quality...
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...Ir and globalization CONENT: Introduction Body 1. What is Globalization and how it is related with the International Relations; 2. Advantages and Disadvantages of the Globalization; 3. Effectiveness of the Globalization Conclusion NTRODUCTION In my work I talk about the Globalization and its relation with the Globalization where I dwelled upon the Globalization. In the second part I did survey and focused on the advantages and disadvantages of globalization as the statistics show.After hammering out the two factors I wrote about de facto effectiveness of the Globalization and at the end I stated my estimation and conclusion. International Relation and Globalization As more nations, people, and cultures adapt to the ever changing international community, diplomats, politicians, and representatives must meet and deal with accordingly to the needs and wants of nations. Diplomacy can be exerted in many forms; through peace talks, written constitutions, field experiences, etc. Culture is a familiar term and remains unchanged by definition. However, globalization and international relations have constantly altered culture both positively and negatively. Globalization increases worldwide technology, and the readability of fast, effective communication and consumption of popular products. Globalization links cultures and international relations on a variety of levels; economics, politically, socially, etc. International relations have used globalization to reach its goal: of understanding...
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...development of Internet, transportation and closer relationship between countries, nowadays we heard of “globalization” more frequently in the daily life. Different countries and the people from different places have more connection and communication with each other than before. This is a human social phenomenon. In this big world stage, more relation not only means more opportunities, but also more competition. To research the advantages and disadvantages of globalization can help to catch the chance and avoid the risk and maintain a momentum of healthy development. I will briefly talk about what is globalization and its effects to different areas at the beginning. Furthermore, the advantages and disadvantages will be presented to show how these factors influence the developed and developing country respectively. II. What is globalization? The globalization is just a concept which generally means an increase of global connections, the human life based on the global scale and an increase of global consciousness. The politics and economic trade rely on each other. The globalization can be recognized as the integration of the world. Actually, Globalization is not a new phenomenon, which not happened in recent years. In ancient time, China exported tea and silk to Europe. That the west Europe started colonial times can be considered as the beginning of the globalization. It began at the end of the nineteenth century, but it slowed down during the period from the start of the...
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...several economies to an international one thereby increasing trade, lowering down of trade barriers, increasing competition and generating multiple streams of revenues. Globalisation in respect to the international business takes into consideration the widening business horizons for the economies as they spread their wings to reach out to new international markets. The term means that companies now operate in multiple markets freely with lower legal and tax barriers and more opportunities to tap the market. This has also enhanced the scope of flow of goods and services from one country to another and have made the countries showcase their competitive advantage over others in the world market. The exports have grown with the rise in globalisation as countries reach out to other in the market to take advantage of the competitive advantage of each other. This has helped each country to develop its resource base and act as a supplier of goods and services to other countries in the world through the export market. For eg. China has become the manufacturing hub of the world because of the globalised economy. India offers quality services mainly in IT, medical and tourism to customers all around the world. Globalisation in terms of international business also elates to more and more distribution of work among those in the market who can do that most efficiently and in a cost effective manner which has resulted in the growth of outsourcing sector in the past few years. The advent of globalisation...
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...Chapter 1 Globalization and the Multinational Enterprise ( Questions 1-1. Globalization and the MNE. The term globalization has become very widely used in recent years. How would you define it? Narayana Murthy’s quote is a good place to start any discussion of globalization: “I define globalization as producing where it is most cost-effective, selling where it is most profitable, and sourcing capital where it is cheapest, without worrying about national boundaries.” Narayana Murthy, President and CEO, Infosys 1-2. Globalization and Value Creation. What does an MNE need in order for it to create value through the globalization process? Global business, like any business, is the social science of managing people to organize, maintain, and grow the collective productivity toward accomplishing productive goals, typically to generate profit and value for its owners and stakeholders. A multinational enterprise (MNE) needs three fundamental elements in order to build firm value: (1) an open marketplace; (2) high quality strategic management; and (3) access to capital. 1-3. Value Creation and the Concept of Capitalism. How does the concept of capitalism actually apply to the globalization process of a business, as it moves from elemental to multinational stages of development? Open markets and insightful leadership is all for nought if the MNE cannot gain ready access to affordable capital. It is capital that allows the investment...
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...Fundamentals of Multinational Finance, 4e (Moffett) Chapter 1 Current Multinational Challenges and the Global Economy Multiple Choice and True/ False Questions 1.1 The Global Financial Marketplace 1) Which of the following firms are NOT considered to be multinational enterprises (MNEs) even if they have operations in more than one country? A) for-profit companies B) not-for-profit organizations C) non-government organizations (NGOs) D) all of the above may be considered MNEs Answer: D Diff: 1 Topic: 1.1 The Global Financial Marketplace Skill: Recognition 2) "BRIC" is a term coined in 2001 to refer to a group of countries at about the same stage of advanced economic development. The BRIC countries are ________. A) Belgium, Romania, Italy, and Canada B) Brazil, Russia, India, and China C) Britain, Romania, Israel, and Colombia D) Brazil, Russia, Italy, and Chile Answer: B Diff: 1 Topic: 1.1 The Global Financial Marketplace Skill: Recognition 3) According to the authors, which of the following groups or securities are at the "heart" to the global capital markets? A) debt securities issued by governments B) bank loans and corporate bons C) equity securities D) derivative securities Answer: A Diff: 1 Topic: 1.1 The Global Financial Marketplace Skill: Recognition 4) ________ are the largest markets in the world. A) United States equity markets B) European debt markets C) Global currency markets D) Chinese export markets Answer:...
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