Globalization
(Good or Bad)

PHL/320
1/30/2016

Business Globalization is the tendency of business technologies, capitol, goods and services to spread throughout the world going beyond local and nationalistic boundaries. The practice generally accelerates profitability, and brand recognition while offering security from significant losses and expenses faced by similar entity’s in smaller business models. Although this sounds positive and beneficial; it does include unrestricted movement of labor and often may harm smaller or more fragile economies if applied universally. While I will focus on the impact globalization has on an organization from a business point of view, which is most often and very much a positive for the viability of a given business model; the crippling effect it has on standards of living, local economies, and job creation should not be forgotten. (1)

There was a time being a local corner stone in business was “good”. At that time being a regional business was even better, and being a notional brand was just impressive; but in today’s world the ultimate goal is to be a global dominate brand. Globalization for business is “good”. The term “good” for the sake of this argumentative piece means it is advantageous and/or favorable economically to a business that is trying to grow, compete, and dominate in its space. It is also “good” for a business looking to find lower cost and/or obtain more diversified suppliers. As a business enters into the arena of free flow of capital, international trade, and availability of inexpensive foreign labor markets; it reaps the rewards of higher profitability and lower costs of doing business. This allows for reductions in cost to consumers and better availability of products in the market. It also allows for more innovation through product expansion and development. Globalization is “good” in this regard because it is the measure of success, profitability, and even staying power in today’s economy. (3,4,6)

(1, Premise) Globalization allows a business the flexibility to move into emerging markets to stimulate trade with new and/or expanding partnerships. A globalized business has a significantly stronger and more flexible ability to manage inventory, and logistical issues that may otherwise threaten the success of a smaller entity. This makes the business more competitive and allows them to better dominate their space in the newly acquired markets as well as their existing markets. (4)

(1, Conclusion) Globalization generates significant adaptability in order to boost trade, strengthen economies, and reduce losses while expanding into new/foreign markets by providing an insulation against localized disruptions (political turmoil, or natural disaster related) in productivity.

(2, Premise) Globalization helps to stimulate trade by allowing organizations to gain knowledge about the trends, culture, and customs of other countries to better market their products to those parts of the world. By assimilating markets and expanding its breath of communications and customs, a globalized business can create new consumers and grow more steadily. (2)

(2, Conclusion) By having a broader understanding and respect of local diversity, and increased presence in various markets; a global business entity achieves higher growth potential than other businesses because it capitalizes on a wider range of consumers. This is the basis for an effective communications and growth model across the spectrum of a multinational business.
(3, Premise) Outsourcing especially of labor is an extremely lucrative aspect of globalization that is appealing to businesses. Outsourcing has been used by various companies to reduce costs. They do this by transferring work usually associated with production to contractors; or beyond borders using foreign labors to supply and/or produce goods at a lower cost than it would traditionally cost in more established markets. (4,5,6)

(3, Conclusion) The outsourcing of various aspects of business into markets with cheaper labor, reduced tax rates, and less stringent safety demands, will reduce the cost of doing business and increase overall profitability in the eye of shareholders.

What Globalization offers is relatively limitless in terms of reach and scope. Limits and confinement are impediments for any business potential and thus globalization is “good” for business. Furthermore; with regard to Globalization and the reasoning behind it being “good” for business; both deductive and inductive reasoning can be used to demonstrate this. Premises 1; regarding adaptability is an example of inductive reasoning because the conclusion is based multiple premises that are generally accepted as true. While my deductive argument is believed to be completely guaranteed of the premises truth. This means that the conclusion is very much like the rhetoric of the premise. Premise 2 is concerned with the broadening of horizons or markets in this specific case. Premise 2 is a solid example of a deductive top-down argument as the premises and conclusion is the virtually the same in providing support for the process of globalization. (3)
REFERENCES

1. Rouse, Margaret. "What Is Globalization? - Definition from http://searchcio.techtarget.com/definition/globalization. Whatis.com, n.d. Web. 28 Jan. 2016.

2. Banks, J.A. (2003) Educating global citizens in a diverse world. Retrieved February 24, 2006. from www.newhorizons.org

3. Moore, B.N., & Parker R. (2012). Critical thinking (10th ed.). New York, NY: McGraw-Hill

4. Castells, M. (1999). Information technology, globalization, and social development. Switzerland: United Nations Research Institute for Social Development.

5. Hanson, G.H. 1996. “Globalization, outsourcing, and wage inequality”, in American Economic
Review, Vol. 86, No. 2, pp. 240–245.

6. 1999. “The impact of outsourcing and high-technology capital on wages: Estimates for the United States, 1979–1990”, in Quarterly Journal of Economics, Vol. 114, No. 3, pp. 907–940.