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Impact of Globalization on Trade and Employment

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What is meant here is the fact that the contemporary communications provide ample opportunities to maintain contacts between people in different parts of the world. In actuality, companies can use contemporary communications to develop links with their business partners or affiliates. In the future, the role of communication will grow even more because the process of globalization has practically eliminated boundaries between countries. Therefore, companies got ample opportunities for the development of their business in different parts of the world but, in order to provide the effective work of its affiliates or maintain the permanent contacts with business partners.

In practice, this means that communications are strategically important and may play the key role in the international market expansion of a company, for instance, because, being deprived of effective communications, a company will more likely be doomed to failure.

Obviously, communications can provide a more effective system of control over the production process that is important for the maintenance of the high quality of products and services. For instance, companies based in well-developed countries can develop their business in developing countries where the qualification of the labor force is consistently lower.

Consequently, such companies need to control the production process and communications are extremely helpful in this regard. Moreover, it is obvious that knowledge and information are major factors that determine the commercial success of any company, especially companies focusing on the implementation of innovation. At this point, it is necessary to underline that communications contribute to the more effective sharing of knowledge and information between different units of a company.

In actuality, it is possible to develop projects, involving specialists that live and work in different parts of the world and, due to the contemporary communications, they can interact effectively in spite of their geographical location.

Also, logistics is one of the key elements of the stable and effective functioning of contemporary companies and communications contributes consistently to the improvement of logistics, while in the future it will play even more important role.

In this respect, it should be said that the development of e-commerce, for instance, makes the shipping and logistics practically impossible without the use of contemporary communications and in the future this trend will grow stronger. The capital is traditional an important, constituent element of the contemporary business and, according to K.

Ohmae, capital will be of a paramount importance in the process of business decision making in the future In fact, the free movement of capital that could observed nowadays indicates to the perspective of the large progress of direct foreign investments, which increases the cooperation between countries and facilitate consistently the penetration of companies into foreign markets.

Even though the effects of the free movement of capital in the form of investments may be quite controversial for local economies, the development of the future economy is hardly possible without it.

On the one hand, significant investments of multinational corporations can undermine the position of local companies, but, on the other hand, they stimulate the development of the local economy through the partnership with the local suppliers, partners, etc. The major trend that could be observed in the movement of capital even nowadays is the growing cooperation between developed countries.

Investments of companies based in the US, Europe and Japan constitute the dominant part of the global investments. In such a way, the capital tends to the internationalization and makes economic links between companies located in different countries stronger.

Similarly, the role of multinational corporations grows stronger too because in the contemporary world they play extremely important role and the major part of all foreign investments are made by multinational corporations. In the future, their role will remain very significant. At the same time, K. Ohmae warns about the necessity of the change of traditional approaches to business development used by companies In fact, he does not give some direct recommendations concerning the most effective ways of the development of business in the future, or the most effective management strategies he still give insight into the future of the process of globalization that will inevitably effect the strategic development of companies.

In this respect, it is worth mentioning that the behavior of consumers will still be very significant and it should be taken into consideration by companies that are entering new markets. To put it more precisely, K. Ohmae indicates to the necessity of the adaptation of business strategies to the local, specific cultures The process of globalization will increase the significance of the ability of the company to get adapted to the multicultural environment.

In fact, companies will need to be able to work in different cultural contexts that means that they should be able to meet the needs and expectations of consumers that have quite different socio-cultural background, traditions, values, etc. In fact, consumers play traditionally important role in the functioning of companies. This trend may be easily traced at the present moment as well as in the past.

The substantial difference that companies should expect in the future is the mentioned above cultural diversity they should get ready to adapt to. In other words, they should develop flexible strategies of their business development in order to make their adaptation to local markets more effective and easier. At the same time, one of the major trends that will define the future economic and, in all probability, political development of the world is the decreasing role of nation states.

In this respect, it should be said that K. Ohmae lays emphasis on the fact that the significance of nation states will steadily decrease, while regions will become determinant in the economic development of the world What is meant here is the fact that, as K. Ohmae attempts to forecast the future development of the world economy, he reveals the trend to the regionalization.

Basically, the nation state will be less important compared to certain regions, which may occupy either a part of a country or stretch out over the territory of several states. In this regard, the researcher draws the example of the contemporary China, which economy tends to regionalization even nowadays, to the extent that, in spite of the existence of the authoritarian political system, the country is able to develop its regions the economic power and potential of which varies dramatically.

For instance, Dalian in China may be viewed as an example of one of such regions. On analyzing the future development of the world, K Ohmae indicates to several regions, which are particularly perspective to him, such as Hainan Island, the Baltic Corner, Petropavlovsk-Kamchatsky in Russia, Sao Paolo in Brazil and some others Basically, he underlines that these regions will be particularly attractive for the economic development and may become major economic centers in the future.

In fact, they may be compared to contemporary economically significant regions. The trend to regionalization will accompany the natural process of the decreasing of the significance of the nation states. Their traditional protectionist role will become weaker and absolutely irrelevant to the objective reality of the future globalized economy.

If nowadays, nation states can form trading blocs, influence the economic development of the entire country, than in the future the role of regions will more likely to outweigh the significance of nation states and trading blocs.

In actuality, there will be no need in the development of protectionist policy in terms of nation states because even nowadays fiscal barriers between countries disappear. In the situation when national economies are actually open and are not protected by any fiscal barriers, it will be quite logical that regions that are economically advanced or that have larger economic potential will develop faster than backwardness stricken regions.

It is possible to name different factors that can influence economic development of regions, such as intellectual and educational potential, qualification and the cost of the regional labor force, natural resources, etc. In contrast, postmodernists support diversity, the local, difference, and heterogeneity, and sometimes they note that globalization itself produces multiplicity and hybridity.

They argue that with the help of global culture special appropriations and developments are possible in the entire world. Globalization will create new types of hybrid syntheses of the global and the local, helping to widespread heterogeneity and difference. In turn, Axtmann suggests that global citizenship and accordingly the impact of globalization could lead to a real acceptance of heterogeneity, diversity, and otherness contrasting with globalization that just promotes sameness and homogeneity Kellner.

Globalization is able to produce new forms of imperialist domination in accordance with globality and universality. There is a danger that globalization just disguises a indefatigable Westernization, or Americanization, of the world.

However, restoration of ethno-nationalism, tradition, religious fundamentalisms, and other types of resistance to globalization are active to certain degree by a deviation of the homogenization and probably Westernization connected with some globalization forms. Westernization had a great and a pervasive influence on the world during the past decades.

The collapse of imperialism and colonialism over the decades was noticed by the two World Wars of the 20th century, after which many smaller countries, which were created by former colonial authorities primarily European , obtained independence and involved different aspects and features of Western culture and tradition.

After a downfall of the former Soviet Union at the end of the 20th century, many of its component states became the subject for Westernization. It also included privatization of hitherto state-controlled industry. Special attention must paid to the fordism and post fordism movement.

Fordism is known as the system of mass production and consumption characteristic of highly developed economies and it existed in the ss. According to Fordism theory, the combination of mass consumption with mass production is necessary to achieve material advancement and economic growth.

The period of ss is characterized by slower growth and rising inequality of income. At that time, the system of production and consumption organization has transformed. That was a second transformation — post fordism — which led to the second rise of economic growth.

Along with process engineering, the second transformation is making transformations not only how we produce things, but also how we live and what we consume accordingly. Reschenthaler and Thompson , pp. So, globalization must be illustrated as a difficult and multidimensional phenomenon that includes various levels, flows, and conflicts as well as its possible future. A critical theory of globalization deals with the reality of globalization, its authority and influence.

However, it also studies different forces of resistance and fight that try to resist to the most destructive sides of globalization or global forces. For example, the constant issue of local and political fight with complex causes is race, ethnicity, class and nationalist problem. It is well-known that the period from the end of s to the present time is characterized by a rise of traditionalism, nationalism, and religious fundamentalism along with increasing globalization.

It is also worth to admit that the resurgence of regional, cultural, and religious differences in the former USSR and Yugoslavia along with intensive tribal conflicts in Africa and in other places allows us to make a suggestion that globalization and homogenization were not so much connected and deep as it was considered by its supporters and critics.

In result, culture has become a new source of conflict and an essential indicator of fight between the local and the global. The other important reason of resistance and struggle is the gender inequality and difference. At the level of policy, the influence of globalization on women and gender relations is still ignored on the national and international levels. Due to gender inequalities and discrimination in many countries worldwide, globalization processes may render their negative influence on women in greater degree than on men.

Nevertheless, many advocates of women admit that globalization influences various groups of women differently. It even creates new treatment standards for women, and assists some groups of women to mobilize. Thus, the role of globalization for many women is still in debate and it is evidently different. Consequently, globalization is very complex concept and it stimulates to occurrence of different theories, economical, political and cultural studies.

There are a lot of reasons due to which globalization has been perceived as mainly an economic phenomenon that additionally has had an evident impact on political, social, and cultural life. Economic globalization means, that it is a long-run upward tendency. Thus, it will be useful to measure globalization. There is a lot of various indicators of economic globalization and they may or may not illustrate familiar patterns in regards to change over time.

Trade globalization can be distinguished as the certain share of the production all over the world. Investment globalization would be the share of all world capital invested that belongs to non-nationals capital in the world that belongs to non-nationals i. Also it is possible to investigate the degree of economic integration of countries by defining the extent to which national economic growth rates correspond to each other in the world countries.

From the economic point of view, globalization is connected with the transnationalization and deterritorialization of industry and capital, which has permitted companies to cross national borders and to travel over the world to succeed from cheaper labor and to open, develop and promote new markets for different services and goods. In addition, economic globalization has been connected with the occurrence of international free trade agreements as the General Agreement on Tariffs and Trades GATT , and the foundation of an around-the-clock global financial market Szeman , p.

Contemporary patterns of economic globalization have been much connected with a new development of the relationship between markets and states. Together with financial integration, the operations of multinational corporations also played the important role. They integrated national and local economies into global and regional production networks. Due to such conditions, national economies are no longer autonomous systems of wealth creation since national boundaries no longer function as essential barriers to the organization of economic activity and its conduct Held and McGrew.

As it was above-mentioned, the multinational corporation further — MNCs was significant to the establishment of a new global capitalist order. Modern transnational production essentially exceeds the level of global exports and has become the main means for exporting services and goods.

According to some estimates, multinational corporations now make for at least 20 per cent of world production and 70 per cent of world trade Held and McGrew. Economic globalization has also been characterized by an evident internationalization of political power connected with a relevant globalization of political activity.

Thus, it is worth to deal with the political meaning of globalization. A special attention has been paid to the threats caused by globalization in regards of the sovereignty and power of nation-states and accordingly, on the occurrence of new sites of transnational politics placed in global cities, international organizations such as NGOs and the United Nations and transnational corporations Szeman , pp.

At that time global cities were the spaces where labor, capital, infrastructure, and information are concentrated Irvine

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essay about globalization, its advantages and disadvantages Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. Globalization is a process and this process makes developments in these countries. First of all is the independence of each of developing countries. The development in industry, economy, culture and polity gives solutions to social problems.

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Mar 17,  · Research Paper on Globalization The process of globalization has defined the development of the world economy during the last couple of decades. Basically, this process affects the world at the present moment as well and, what is more, the impact of globalization . Research papers on international economics study the integration of world economies. In our increasingly globalized world, international economics affects productivity, imports and exports, technology, and growth rates. Some of the trends in international economics are: How to Write a Research Paper on Globalization.