The Trends In Globalization

The Trends In sphericalization globularization is a process of connection amidst the tribe, companies and disposals from unlike countries. It is a process of transnational quite a little, financial market and technological flummoxment in the origination. It influences the environment, political principle, thriftiness, personal perspective and values, and culture. Technological advances and host transportation lead people to get c withdrawr, travel much often and make up internationalistic cooperation that gives to a greater extent opportunities to investors and communicating channeles to expand their globular markets. Thomas Friedman depict in the video that personal calculating machines and internet are the important subscribe to globularization. Internet performs as a tool to connect people from different nations. The expect for travel is diminish beca engross of growing use of real- clip conferences and online tools on the Internet.Globalisation gives opport unities that more organisations expand their businesses in competitive market. They can throw away less operating be and produce the variety of products and services by using diversification of resources. It effectively reduces the cause of organizational risk and pursuance payments in different situations. Deregulation is a major factor to advance competition and maintain a turn swap. When governing and industry associations deregulate the particular rules, companies can find bump providers and offer cheaper and better feeling of products for customers. In addition, comparative advantage leads the scotch growth and does a down of guile in concert, so both countries can produce goods efficiently, increase pay and satisfy the demand of goods for numbers of people.Globalisation divine services ontogeny countries to develop their economy and meliorate their standard of living. International organisations set up companies and factories which create a lot of business org anization opportunities for the poor in underdeveloped nations.Thomas Friedman verbalize that companies go planetary for markets and dig up. Now the change is that orbiculateisation is led by individuals. Individuals can move to an an whatever otherwise(prenominal) countries as well as use Internet to receive and send information.Identifying Forces Driving Globalization(1079 words) fit in to the publishing from United Nations ESCAP, globalization is defined as the culture which influences economy and business in the world. It is the motive force which increases the cooperation and communication across different countries. Economists affect that globalization leads to develop the global market. Historians see globalisation is dominated by global capitalism. Sociologists believe that global movement of people, goods, and ideas change lifestyle and favorable values of everyone in the society. For the political scientist, they say that state sovereignty is lastly interpreted a way by the globalisation. There are some effort forces which accelerate the desegregation of regions and nations through frugal development. softwoodInternational pile had force the significant drive of globalization later on the Second domain of a function War. Protectionism was introduced during this period. Government restricted the international trade in order to value local farmers and businesses from external competition. It consisted of import tariffs, quotas, subsidies or tax reduction to local memorialiseprises and state intervention until relaxation behavior was emerged.World mountain Organization drives global stinting integration and promotes world peace more deeply. World Trade Organization was established by the piece states in 1995. The aim is to controvert trade agreements, settle trade disputes and comply with trade rules. It helps open the global assuage trade as well as protect in all portions in trade environment. GATT is a multilateral agreeme nt which eliminates the trade barriers and reduces tariffs among member states.Capitalism was excessively introduced in occidental world in nineteenth and 20th centuries. It is a current economic system which everyone can enter the market and provide goods and services. Through the selling process, they can either lose gold or gain salary. Capital and assets are owned by entrepreneurs. Government has no right to control the flow of market.FinanceThe free market increases the frequency of international trade. Companies from certain countries offer resources and capital to developing countries in order to help them improve their poverty and boost their economy. It is also called contradictory direct investment which means companies invest through get a company, a merger or an acquisition of the company in another country. A lot of companies outsource the merchandise. They cooperate with suppliers under the contract. thus suppliers hire labour to produce goods much(prenominal )(prenominal) as electronics, railroad cars, textiles and garments in factories which revoke the mellowed production costs, taxes, fatigue costs and utilities for companies. The risk of failure exit be decreased in results of suppliers train labor equipped with alter skills.Companies engage in new technology, goods and services. International production networks have emerged in the global market from the US since the 1960s. It was rapidly developed especially in eastern United States and Southeast Asia. Because of numerous multinational corporations faced high labor costs and import products increase season they had to provide cheap products against other competitors, MNCs has started to adopt outsourcing which forms global supply chains in Asia. They set up different regional offices and factories in a few of Asian countries. underdeveloped countries in Asia rely on technologies from Japan, The US and EU countries for production. chinaware, a global assembly centre, is t he leading country in international production networks. And chinaware exports the most in the world as well.In addition, ASEAN was created by countries in Southeast Asia since 1967. The aim is to increase the economic growth and achieve the free trade agreements with neighborhood countries. Recently, the economic crisis affects ASEAN that the foreign direct investment is decreasing in some Asian countries. According to ASEAN Secretary- ecumenic Surin Pitsuwan (The Jakarta Post, August 10, 2011, Global debt crisis to affect ASEAN, P.1), a lot of investors are from European Union, which comprises 22% of fall foreign direct investments. ASEAN ineluctably to keep their motivation and strengths.CommunicationIt is unrealistic to open the international market without information technology, which has been rapidly improving the communication amongst people in the world. Internet and telecommunications are beneficial to the trade and financial industries. Companies enable to contact cu stomers from different countries immediately and do minutes accurately. commonwealth can receive the knowledge and new ideas coming from other nations and also influence other people to make progress in different aspects. victimization Internet is beneficial to companies that they can save time and cost. They also offer 24 hours services and online payment, separate out their customers instantly and wipe products accurately. People can use mobile phone to make long distance calls via the satellite technology and use Internet by accessing broadband info connection. Nowadays, these technologies are commonly utilize in businesses.TransportTransport is innate to boost the global market. Different means of transport can be used for delivering. In order to facilitate the development of logistics, people had invented with child(p) ships which contain very large capacities. It helps increase economic efficiency.Countries link contiguous by roads and highways. Compared to the earli est time, people went on an expedition and rode horses to other nations for handicraft. They can use cars and trucks to arrive different places now.Air freight has become the essential transport mode. It saves time and minimizes the impose on _or_ oppress and risk. For example, flowers, vegetables, meats, frozen food and some computer parts must export to other countries by plane. According to Boeing (Boeing, n.d. , World Air Cargo Forecast, P.1), air freight is widely used but it slowly grows due to the economic crisis and high fuel prices. People change to use more vehicles and ships which can reduce fuel costs. Using air transport influences by different factors such as mass meeting rates, air service agreements and other restrictions for the importing countries.However, ship transport is whitewash the most major transport for delivering abroad. Since industrialization developed especially in Asia in the 1980s, using the ship transport has change magnitude significantly. Boe ing stated that it carried 8.8 billon tonnes while air freight had only 43 million tonnes in the world in 2011. The maritime transport is mostly used for bulk items such as oil and grains, and most dry products go for air transport.As shown, we see that these five driving forces have deeply affected the globalisation. Global trade boosts the development in finance, communication and transport. At the same time, they help the trade easier and gain more opportunities in businesses. Internet and telecommunications are sophisticated technologies which allow connecting surrounded by suppliers, retailers and customers from different nations in results of the productivity and sales increase. advanced(a) technology and human skills improve gradually, so that people have better lives than the old times.Identifying Different Responses to Globalization(1043 words)According to the report from European hindquarters for the Improvement of Living and Working Conditions, globalisation is relate d to European integration. economical integration has been growing in the European Union since the enlargement of EU and the single market was created. Now the EU has 27 member states, which expands the economic development and increases the cooperation between Western Europe and eastern Europe. As a result, both eventually improve the poverty especially in Eastern Europe, increase gross domestic product and create more business and job opportunities. Nevertheless, economic integration causes some companies lose places in the competitive market. This part volition be analyzed responses of globalisation among member states, institutions and individuals.Eurobarometer has investigated public views over globalization in 15 member states between 2003 and 2006. In 2003, 63% of interviewees from member states said that they approved the development of globalization while 29% of them opposed it. In 2006, only 42% of people thought that the globalization had arrogant impact and 44% of t hose believed that it had negative one. It seemed the fact that perspectives over globalization were more negative. In addition, another survey showed that more people who thought globalization intervened in the market share and job opportunities for companies. The main concerns were some employers unconnected jobs to those from low-income European countries and had more mergers and acquisitions of local companies. For example, most of the people in Poland believed that globalisation led their country to open borders and encourage numbers of migrations. However, young people still worried about the high unemployment rate.Employer responses to globalisationMany head-to-head organisations have optimistic attitudes towards globalization. They think that policy measures help maintain the scrap such as tax reduction and labour law. Looking into a few of countries, employer organisations have different responses.The Confederation of British Industry says that home(prenominal) companie s gain more profits via exporting to fast-growing countries. Reform and inexpensive production are their long-term strategies for business.In the Netherlands, the Confederation of Netherlands Industry and Employers says that a good business environment is necessary for globalisation including the balance of labour market and salaries. The division of labour is also essential which means production industry needs employees equipped with specialised skills and high value-added work needs professional workers who have more creative ideas.In Finland, the Confederation of Finnish Industries explains that the impact of globalization comes from the way that private enterprises and government react. Companies gain profits from enhancing their competitiveness in the foreign market, also they help increase the GDP of developing countries in results of growing the demand for their Finnish goods or services.The General Confederation of Italian Industry states that local companies rely on the i nternational market. Government engages in support them to develop exports and promote their products in overseas. increase the competitiveness needs government and private enterprises to conduct internal procedures rapidly, improve the infrastructure and minimize costs.Trade unions responses to globalizationTrade unions agree that globalisation is the existence of process. They concern that it will worsen the social values and workings conditions. Therefore, trade unions monitor based on social policies and communicate with European Works Councils. There are a few examples of different countries.Trade unions in Belgium insist that Europeanization is connected to globalisation. They promote the e fiber and solidarity. In 2007, they asked the government to conduct social and economic policies at European level. They also purposed to increase more professional jobs and continued expanding the market at global level. However, globalization has bad effects on privatization.In Germany, trade unions say that globalization brings the economic growth and employment opportunities. more or less companies find the assistance from trade unions due to problems of resettlement abroad. Regarding to similar situations, trade unions would look up the international labour guidelines and other agreements. They will also contact with European and global works councils. Government should set up RD while companies should improve the quality of products, strengthen the training for the staff and commit to innovation.In Austria, trade unions deport that the large companies should build the head offices in its own country because the economic growth does not only involve in the relocation in target countries, effects of supplier industries and other services should be taken into account. For example, trade unions purposed the government to avoid the relocation abroad and have mergers and acquisitions by foreign enterprises.Institutional responses to globalizationGovernment enforce s policies to resolve impacts on globalisation including relocation and foreign companies take over the local ones. Both damage domestic market and cause further consequences.Government intervenes in the relocation appropriately in order to reduce serious effects which die in the country. It encourages domestic companies to invest the production in its country such as using political pressure, subsidizing the cost of production and making vernacular agreements. Government also creates good business environment for local companies including accelerating administrative procedures, offering tax reduction and boosting foreign countries to invest in its country. The business support is important, particularly giving financial assistance to unemployed workers and providing job opportunities for them.There are some examples of government prevents the relocation abroad. In Sweden, Saab, an automobile company, decided to relocate its production from Western Sweden to Germany. Government a greed on offering 10 million euros fund to Saab. Afterwards, the fund was used to develop RD research, which improved car technologies, convinced Saab successfully to locate the production in the country and prevented to cut the workforce.A lot of local and foreign companies remaining their businesses in Malta and relocated them in developing countries such as Bulgaria, Romania and China. It was scarcely convince them to keep the production due to higher labor costs in its country. Government did not intervene in it instead of encouraging foreign investors started up the high value-added industries. However, Denim serve, a local habiliment company, decided to relocate its production. Then the government helped search an investor for Denim Services but it was not successful, in turn 1,200 staff lost jobs.As shown, we understand that globalization influences the EUs economy in positive and negative ways. Some employers, trade unions and governments express their concerns and other s welcome the foreign direct investments. Each stakeholder should reach when globalization has serious damage on its economic development.Current Trends in GlobalizationAccording to the report from World Trade Organisation, international trade began after Second World War. Then it grew slowly because of the inflation and high fuel prices. In order to rebuild the market, the US executed the curriculum called The Marshall Plan. They offered $13 billion to help create economic integration and eliminate trade conflicts in Europe. According to Herman Van der Wee (Robin hog and Max R. Hall, 1986, Prosperity and Upheaval The World Economy, P.44), It gave a new caprice to reconstruction in Western Europe and made a determinant contribution to the renewal of the transport system, the modernization of industrial and agricultural equipment, the recommencement of normal production, the raising of productivity, and the facilitating of intra-European trade. Afterwards, the US appeared the cur rency crisis. In 1971, they halted the link between dollar and gold which was known as the Bretton Woods system. It helped stabilize the economy. The US also started adopting floating exchange system.Because of the developing countries faced high quest rates and a big hit in debts in the 1980s, the foreign direct investment had been introduced.International trade could be divided into tether groups. The first group was West European countries were in favour of the liberalization of market and they obeyed GATT and capitalism. The second group was the Soviet Union, Eastern bloc and China advocated the trading system under communism which meant all companies were owned by the state. The last group was developing countries called for political independence from 1946 to 1962, but government still intervened in the market in order to protect local enterprises. As a result, the developing countries in last group enabled to expand more trades than the first two groups. Afterwards, East As ian countries abolished the third trading system because the economy had improved and international trade grew significantly.As the chase table, it shows that the trade had a high growth at 8.2% between 1950 and 1973 after the end of Second World War due to the value of money rose. During this period, European integration increased the trade between different countries more frequently. The innovative technologies developed rapidly which increased opportunities to expand exports. Japan developed the ship industry successfully followed by Asian Newly industrialised Economies grew in the economic development, namely Taiwan, Hong Kong, South Korea, China, Thailand and Singapore and Malaysia. They mainly exported textiles, electronics and computer products. Then the trade in Japan went down and it was gradually replaced by NIEs and China. Nowadays China dominates the export market, mainly relies on the production of goods.The US started the international trade in the 1950s. They develo ped automobile industry together with Canada and signed mutual agreements in 1965. Unfortunately, the exchange rates were not horse barn for exports causing many companies lost profits. Exporting oil to Middle East also lost a lot of money. In 1993, they created North American Free Trade Agreement, but it failed to resolve the downfall of exports. However, Soviet Union, Western Europe, North America and Japan comprised with 70% of world trade while 80% of it was from NIEs in 1993.In industrial countries, the demand for agricultural products increased from 40% in 1955 to 60% in 2006. On the other hand, the need for fuels and mining products slightly decreased by 10% in 1955 and 2006. In the developing countries, clothing and textiles grew to about 68% and 55% respectively between 1983 and 2006. Office and telecom equipment was one of the major export products, which continued change magnitude to nearly 53%. On the contrary, the demand for automobile products remained at the bottom. 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