Globilization Case

Globalization

The global business environment has evolved dramatically over the past several years. These changes come with both positive and negative aspects that companies now face within this global economy. Globalization refers to the increasing of global relationships involving culture, people, and economic activity. The pros and cons of globalization provide businesses with a set of challenges as well as rewards for doing business on a global scale vs being strictly domestic. Some advantages of globalization are: access to global expertise, ease of entry into target markets, and the cost of business within the new market. While some disadvantages of globalization are: costs of business within a new market, lack of comparable supplies abroad, and the added difficulty in managing diverse working groups.

The ability to tap into the vast resources available to businesses on a global scale can prove to benefit the company in many ways. Having access to a talent pool of new individuals with specific strengths, technical, intellectual or both, allows a company to diversify its staff bringing many unique traits along with individuals. With globalization more information can be shared between countries as well as sharing cultures and having more access to products from different countries. Many people also feel that globalization will lead to economic growth while creating more jobs, competitive companies and lower market prices.

Globalization also has its cons however. The general complaint about globalization is that it has made the rich richer while making the poor poorer. Opponents say globalization makes it easier for rich companies to act with less accountability. They also claim that countries' individual cultures are becoming overpowered by Americanization. These larger companies are having a huge influence on political decisions. There is a fear that these corporations may take over the world due to the power they are gaining because of globalization. Another major problem concerning multinational companies is labor involving prisoners and children workers who are used to work in inhumane conditions. Safety standards are ignored to produce cheap goods. There is also an increase in human trafficking as well as dangerous diseases such as HIV/AIDS.

As manufacturing declines so does economic growth, living conditions, wages, jobs, etc.... Globalization is probably viewed as a wonderful phenomenon with many opportunities if you are a multinational corporation but the disadvantages clearly outweigh the advantages for the middle class and professional service workers.