...with people outside our countries, go abroad easily and even buy things from most places around the world at home through Internet. If you think you are one of those people who have benefit from all these changes, then you should thank for the globalization. It brings us a lot of changes from different area and through this process people may learn and benefit from other countries. As more and more nations catch the step of globalization, this has become the main topic in the era and all kind of voices come upon it. Some people believe that globalization will not benefit the world because of different reasons. They think it hurts both the developed countries and the developing nations, especially on the economic field. I understand that everything has two sides and globalization may have it harmful points. However, I believe what globalization has bring to the whole community on economic area is mostly positive things as it helps the developing countries with their economy, makes people live under better situation and provide more working opportunities to developing nations. At the same time, it lowers the cost of developed countries and makes strong countries get more economic benefit from this process. Maybe some people insist their point that developed nations benefit most from globalization. I kind of agree with that. Dave Curran, the deputy president of the Union of Students in Ireland, published the article “Globalization Does Not Benefit Developing Nations” to argue that...
Words: 1156 - Pages: 5
...motorcycles. | 1905 | The first car, called the “Voiturette A”, leaves the factory gates and thanks to its quality and attractive appearance soon gains a stable position in the emerging international automobile markets. | 1907 | Laurin & Klement set up a joint-stock company that goes on to export cars to markets the world over. | 1925 | The Laurin & Klement automobile factory merges with the Skoda machinery manufacturing company in Plzen. | 1939-1945 | During the war years, the factory focuses on producing materials for the military. Just a few days before the war ends, the factory is bombed and sustains considerable damage. The enterprise is nationalized in the autumn of 1945. | 1946 | The enterprise’s reconstruction takes place under a new name, AZNP (Automobilove zavody, narodni podnik” – Automotive Plants, National Enterprise). | 1989 | Czech republic formed. | 1991 | April 16 marks the beginning of a new chapter in the Company’s history, when it is acquired by the strategic partner Volkswagen. Skoda becomes the Volkswagen Group’s fourth brand. | 1996 | Production commences of another milestone car model for the Company – the Skoda Octavia. | Five Forces Analysis 1. Threat of Entry Eastern European consumers get access to a great variety of cars then they have before and increasing buying power of consumers in emerging countries and in Soviet Union Countries. These two factors can increase the competitive environment and increase the...
Words: 919 - Pages: 4
...really flat? In his famous book: The World is Flat, Thomas Friedman depicts how globalization has broken the restrictions of country border and is transforming the world into an interconnected, flat world. Based on his observations, Friedman groups these globalization phenomena into 10 so-called “flatteners”, such as Collapse of the Berlin Wall, outsourcing, offshoring, and informing. He is a firm advocate of free trade. He recounts several examples of Chinese and India companies that take advantage of low cost labor to integrate into the whole world trade supply chain. From his view, the world is really becoming a seamless world factory where every country works in cooperation along this supply chain. Meanwhile, globalization is bringing a set of globalized values to every corner of the world. Indeed, the world seems like a truly fair playing ground. However, in my view, the world is just far from being flat. The world is in a huge imbalance. Due to the comparative advantage of labor between developing countries and developed countries, the world capital is flowing from the US and European countries which have high labor cost to emerging economies like China and India where there are abundant supply of cheap and skilled labor. On one hand, China and the other emerging economies are accelerating their integration into the interdependence world factory. Gaps in living standards, wage and technology are quickly shrinking. The benefits of economic boom are spreading from those...
Words: 1392 - Pages: 6
...phenomal growth which has been taking place within the last decade. In fact these two countries were once extremely sheltered and self-imposed however understood and realized the opportunity for major growth would take its country to new heights. The Chinese were essentially influenced and inspired by Singapore to accept capitalism. Although communist, their leaders prized political stability, and they were willing to reverse the very essence of their party doctrine to accept and achieve capitalism. The communist party made it clear however, that they would allow economic freedom but not political freedom. They took very great measures to stay in control, some may even say too harsh. Furthermore, China was after more than just jobs, they were after modernization itself. The Chinese government made it very attractive for Americans and other firms to build factories, hire Chinese workers, and bring in the modern world’s expertise into China. However with all the talk about modernization, China’s government still placed the perceived needs of the state well ahead of individual liberties. In contract, following its independence from Britain, India had spent decades in economic exile. It took them much longer to modernize and accept some forms of capitalism. In fact, India eventually turned to China for inspiration, which once looked to Singapore. Today, India is well developing into a modernized country. In fact, Chinese and Indians are increasingly making what Westerners buy, answering...
Words: 1730 - Pages: 7
...Jordan, Toshiba, and Infiniti cars, companies started their business in one country, then move the manufacturing or distribution to a foreign country. Those foreign countries export goods such as pomegranates and TVs, which leads to fluxuation in gas prices. The gas prices cause financial problems. One connection to the world is Air Jordan apparel, which is an United States found company and my favorite basketball shoe brand. They manufacture their goods in a factory in Indonesia, which also has foreign employees. The workers only get the minimum wage of $2.50 a day in Indonesia. Air Jordan is owned by Nike, who moved the manufacturing to Indonesia. They closed all their factories in the US because it was cheaper in Asia. Another connection is the purchase of pomegranates from Iraq. This an example of the purchasing of exported goods. They export goods to get a better income. This also relates to the domestication of plants in the Neolithic Era. The Tigris and Euphrates Rivers, used in the Mesopotamian civilization, are found in Iran and are used for agriculture. Toshiba is an often used brand in my family. Toshiba’s headquarter is located in Tokyo, Japan. They make electronic devices like televisions and computers. Like Air Jordan, Infiniti, and the pomegranate bearing country of Iraq, Toshiba send their products to different countries to increase sells. Toshiba, as well as, Air Jordan use factories in southeastern Asia because it is cheap. My parents own an Infiniti sedan...
Words: 472 - Pages: 2
...States. The U.S. labor wage is significantly higher than that of Taiwan or China. Additionally, the company would not be able to manufacture in Taiwan, where manufacturing is cheap and efficient, where the company needs the capacity to produce at high volume and low cost and offer a better designed product-not to mention the Taiwanese factory soon out-producing Logitech’s U.S. facility. Moreover, Taiwan offered a well developed supply base for parts, qualified people, and a locally expanding local computer industry. Without trade, Logitech would be able to rely on China for cheap labor and the assembly of the products with 4,000 employees. In sum, all of these increased expenses and costs would require a rise in the retail price for the consumer. There is also less overall competition in a world without trade, thus allowing Logitech to raise retail price to its consumers. 2. Explain how trade lowers the costs of making computer peripherals such as mice and keyboards? Trade lowers the costs of making computer peripherals in many ways. For one, trade allows companies like Logitech to set up production and labor sectors in other countries, which enables the company to manufacture the products at a much cheaper rate. Second, trade allows for increased economies of scale. Whereby enabling Logitech to produce a high quality product at a low price because the company can purchase parts from...
Words: 1643 - Pages: 7
...and Developing Countries Globalization is the massive control of the world’s economy by big businesses. With the growth of globalization comes the changing of developing countries’ economies, and destruction of environments and cultures. So why than are we still allowing corporations to hurt them? There must be a stricter limit on corporate activity in developing countries to protect their economies, environments and cultures. How far does globalization go back? Some people argue that globalization can be traced back to the Turks control of the Silk Road or the discovery of the Americas. (Ornek, Globalization and Cultural Identity) Others claim that it began at the end of the 19th century with the beginning of the Industrial Revolution. (Ornek, Globalization and Cultural Identity) There is no certain start point for globalization but two modern technologies have helped globalization become more noticeable, communication and transportation. (Ornek, Globalization and Cultural Identity) Regardless of when globalization began, it is an ever-expanding process. Economics is one of the most heavily affected by globalization. As corporations expand and build factories in other countries they not only harm the economy of the host country but also of the home country. These companies are practicing outsourcing, meaning that they are taking jobs from people in home countries and giving them to those in host countries. This helps raise the unemployment percentage in home countries. For...
Words: 1184 - Pages: 5
...they do business around the world. So what does globalization have to do with corporate social responsibility? Globalization is the unseen force that drives business to do cross border activities or it may just be an excuse for them to do so. Recent history shows that companies from the west or Europe have been moving their production facilities to the east—China and India—to take advantage of the cheap labor cost in those areas. There is mixed perception about globalization in the business world and, without leaning towards any side of the controversy, I believe that the governments is responsible for both the positive and negative sides globalization presents. However, both governments and companies should make effort to uphold corporate social responsibility and preserve the environment. First of all, globalization is a profit driven process which derives from businesses need to reduce costs and increase profit. Historically, contacts between nations were made for economic advantage through trades. Today globalization is no exception. In my opinion, in the business world, globalization is a code word for the exploitation of cheap labor from underdeveloped countries in foster profits of corporations from the west or developed nations. This was true in the United States for the last two decades when companies after companies move their manufacturing facilities overseas to take advantage of the cheap labor cost. This,...
Words: 1212 - Pages: 5
...& Mandell, 2017, p.117-118) not only names his audience as “’poor’ college students” (Ravinsankar, 2006), he uses pathos with the words “we” and “us”, thereby identifying himself and his audience as the same, one group always in search of a good deal. The problem is that consumer’s demands for low prices results in corporations locating their factories in third world countries, paying workers “pennies per hour” for working long hours nonstop in unsanitary conditions (2006). Ravinsankar has a B.A. in International Studies and Political Science from Ohio State University, and has done much...
Words: 399 - Pages: 2
...OTCCOT Essay During the time 1750-1900 changes were happening in many countries. People began moving around for a different place to live, a better life and new jobs. This period was called the Industrial Revolution. People moved for a better living life; some moved because of crime or not having a job and even not receiving enough benefits. Some reasons even included not being able to supply for their families. But during this time people were mainly moving to find better jobs. The industrial Revolution was the time for inventing and improving technology. A transition period to new manufacturing process. A change from hand production materials to machines and new mechanical iron production. A change from wood supply to coal. This was urbanization starting with the industrial changes and people began to move from the countryside to the city, and some moved from different countries into Britain. This began a population increase due to the urbanization in Britain. Fast developing iron, coal and textile industries were creating new work. New work meant that more workers were needed, and so more people needed a place to live. Before the Industrial Revolution the working industry were people working inside the factories and each machine was operated by hand and each machine would require more than one person to work with it. Fast developing iron, coal and textile industries were creating new work. New work meant that more workers were needed, and so more people needed...
Words: 752 - Pages: 4
...American colonies by bringing the factory system to America, supplying more employment which increased urban growth, and raising the national economy. Americans developed and profited from a variety of inventions that produced goods and materials faster and cheaper. The Industrial Revolution was an ongoing effort over many decades to increase production by using machines rather than the power of humans or animals. Groups of spinners and weavers gradually began working together in buildings known as mills, usually located on a stream or river, using the power of flowing water to run their tools. The British inventions took an immense impact on the American Industrial Revolution. Inventions like the spinning jenny, the water frame, and the power loom helped mechanize the processes of spinning and weaving cloth. An invention that played an important part in the revolution was the steam engine. The creation of the steam engine was credited to James Watt. James Watt developed the first practical steam engine in Britain between 1765 and 1785. The steam engine made it possible to pump water out of mines and run textile machines. Textiles were a major product of the Industrial Revolution. The British knew more about the textile industry than Americans. Since, the British had more knowledge of textile-related inventions, textile workers could not move out of Britain, and nobody could send drawings of textile machinery to another country. American textile producers offered...
Words: 947 - Pages: 4
...never tried, learn different languages, meet people who share ideas we have never heard of, and do much more than what we are used to. Globalization is the connecting of countries, cultures, trade, communication, transportation, technology, and money. This process of becoming globalized concerns many worldwide, with many wondering how their life will change. It is the process in which different societies and cultures integrate to gain better understandings, and live a better quality of life. This progress affects the world economically, politically, culturally, and socially. It affects each country differently, some better than others. This term once meant that more people are moving across the globe, spreading ideas and goods across borders. In today’s world, some of the matters it deals with are free trade, world banks, sweatshops, and outsourcing. Many people see the positive effects of globalization. Societies that become richer with knowledge may be accepting of all types of people, making our world more peaceful. However, I see globalization as damaging to developing and developed countries in today’s world. Workers in developing countries are prone to harsh conditions and exploitation. Developed countries suffer from greedy CEO’s and unemployment due to outsourcing. Globalization damages developing countries because many young people work in sweatshops, which damages their health and development. These young boys and girls have little opportunity to develop into better human...
Words: 1447 - Pages: 6
...Ethical Issues in the Global Economy The business world is changing. It is evolving into a fully integrated global economy, where corporations and their managers are faced with moral dilemmas and ethical questions as they expand their operations on a worldwide scale. As raw material sources, supply chains, and production facilities are increasingly being built and moved overseas, businesses are beginning to uncover new issues which complicate their processes and operations. Gray areas are developing relating to humanitarian and labor issues, environmental concerns, and governmental regulations that challenge even the most socially responsible and forward thinking companies. At the same time, citizens and shareholders alike are challenging global firms to address the Triple Bottom Line approach, an approach that equally emphasizes the importance of people, the planet, and profits in measuring the success of any given firm. Companies are still expected to succeed financially, while simultaneously taking care of the environment, their employees, and the communities in which they operate. In order to gain insight into this situation, one may consider The Travels Of A T-Shirt In The Global Economy by Pietra Rivoli. In this case study of a truly global product, Rivoli explores the path that a simple cotton t-shirt follows from raw material, to finished product, and finally on to its own secondary market. She explores the people behind each step in the process, the environmental...
Words: 2900 - Pages: 12
...4) Cultural and environmental factors (for ex: language barriers so it can be a disadvantage) [environmental factors: environmental issues not applied in every countries, for ex polluting and dnt care about the environmental standards). 5) Occurs on political, technological, cultural and economic levels (integration of the aforementioned factors) History of Globalization: 1) 1870 – 1914 2) Technological improvements in transportation 3) Dominated by European and American businesses 4) Brought to an end by WW1 5) Great Depression prompted further limitations on trade and protectionism (protect local producers) Second wave of Globalization 1) 1945 – 1980 2) Result of reaction against nationalism following ww2 as well as lower transportation costs 3) Dominated by developed nations with developing nations largely excluded 4) Lead to a greater increase per capita income for developed countries than for less developed countries. Latest wave of Globalization: 1) 1980 – present days 2) Included some but not all developing countries 3) Featured increased capital movements 4) Decline in mobility labor (certain barriers like immigration norms to decline other people in or out) 5) Outsourcing became more prevalent with both blue collar and white-collar jobs moving from the US...
Words: 763 - Pages: 4
...Business Strategy 1. Internationally transferable FSAs . Tacit knowledge = personal knowledge MNE’s heritage=key routines developed by the firm since its inception. 4 archetypes of administrative heritage: • Centralized exporter=only exporting the standardized product, no activity in host country. • International projector=FSAs from home country copied, no development of new ones. • International coordinator=different parts of the production process in different countries. • Multi-centered MNE=does everything(produce, sell, etc.) in the host country. 2. Non-transferable or location bound FSAs. 4 types of non-transferable FSAs: • Stand-alone resources=linked to location advantages. Such as certain immobile markets. • Other resources=such as local marketing knowledge, don’t have same value abroad. • Local best practices=routines which are highly effective at home, not the same abroad. • Recombination capabilities=taking FSAs/products from home and adapt it to host country. 3. Location advantages. !Strengths of a location, useable for all the firm’s operations in that location. !The reason why an MNE should go there. Foreign direct investment(FDI)=the allocation of resource bundles by an MNE in a host country with the purpose of performing business activities over which MNE contains strategic control. 4 motivations to perform activities abroad: • Natural resource seeking. • Market seeking. • Strategic resource seeking. • Efficiency seeking. 4. Value creation through recombination. Recombination=being...
Words: 2493 - Pages: 10
