Globalization refers to developing combination of social and economic transaction of business person which contributes in the growth of international businesses. The article in mainly based on globalization and impacts over the emerging markets. It has been observed that with the help of globalization still developing countries have managed to improve their economic condition. But, still globalisation has not succeed in enrolling equality among the people who works for it. This article describes about four different aspects of globalisation
Four main aspect of globalisation
Trade: After globalization, those countries who are still developing have entered into the trading process at international level. This trading ratio is increasing continuously with the development of countries.
Capital movement: Globalisation also increases movement of capital flow among the developing countries. As a result, it has enhanced inflow of money within the country itself and strengthen financial status of company.
Movement of people: Globalisation also impacts over the movement of people. It has been identified that maximum number of migration has emerged in developing countries. This helps people to do job in another country so that they can earn more money for making their life comfortable. It has also enhanced number of job opportunities for talented people as they grab deserving chance for future growth.
Spread of Knowledge: It avails opportunities for the people to share their knowledge at global level. It avails opportunities for the local citizen as with the help foreign direct investment many new project have took place in the country.
Major risks of Globalization
Every change is the combination of many risk which might affect whole country as well as its citizen. These risks influences overall global economy of the country. It has been identified that there are mainly two types of risks that is political and economical. And both of these risks involves many others factors which are described as below:
Political risk: This type of risk occurs due to instability of government of trading country. Political risk of globalization includes cancellation of licences (export or import), shortage of foreign currencies, ban of import after shipment of goods has been done, War among international countries,when company of importer becomes seize etc. It can be said that if the licence of any trading company is not renewed than it wont be possible for them to do import or export desired goods and services. Political risk might also arise when company of importer is founded as faulty and its local government have seized it. As a result, it directly affects globalization because when company is not allowed to do transactions then they are not able to conduct business activities.
Economic risk: This kind of risk emerges when exchange rates and other economical instability occurs and affects over an investments especially when it is dealing with the foreign country. As per the study, it has been observed that there are many type of risk which affects over the growth of globalization.
- Unemployment in country enhances the risk of globalization as people are not getting appropriate job opportunities after foreign direct investments too. It impacts negatively on economic stability as people are not working, they are even not earning money for their basic survival. As a result, it becomes an essential factor of economic risk.
- Difference between the wages rates of different countries which are working together for mutual profit. It can be said that, it is considered as emerging risk for globalisation which impacts over enhancement of its growth. As, if more than two countries are working together then there are chances that labours who are working for this earns different wages.
- Another risk of globalization occurs when buyers are not able to repay the due amount even after crossing the limit of payment that is six months. This kind of risk remains forever for those companies who deals at international level. As in many cases amount is not repaid due to uncertain condition unwilling even loyal traders unable complete their transactions.
In 1990s emerging market was not in the support of globalisation as according to survey only two third of respondent thought that investment in the emerging market is beneficial as it will grow in the coming decades. Whereas, remaining three quarter thinks that investment in Eastern and Central Europe is a good option for growth. As per the whole study, it has been found that Brazil, Russia, India and China are considered as fastest growing countries who contributes in economic growth. Emerging markets were initially considered as the growth opportunities for developing countries but still there were some points which can be looked as difficulty in its own. Some of the major identified are described as below:
- At that time, it was compulsory for organisation to deal with similar kind of growth challenges which are faced by them at market place. It includes some challenges such as developing impressive marketing strategy, defeating organisational obstacles, fulfillment of customers requirements, etc.
- Organisation have to upgrade themselves according to the developing and changing markets. As with increasing business many of the venture capitalist who do not wants to fund in new ventures. As a result, it might occur problem of shortage of fund of business organisation.
1. Discuss the impacts of migration and remittances to host/country of origin
Migration as well as remittance both impacts over the economic development of the home country. Here, migration refers to the person who shifts from one place to another in order to increase their level of income. Whereas remittance word is used for the transfer of money which send by those people who works in other country. This sharing of money directly boost up the economic stability of the host country. It can be said that migration of citizen has both positive as well as negative impression over the growth of the home country. As because of migration main talent of the country moves to another one for fulfilling their monetary needs. This activity is helpful in satisfying expectation and needs of migrant people But at the time, home of country of those citizens looses their valuable assets(talented people). This reduce enhance for economic growth with in the home country. On the other hand, when these migrant people sent money to their native people in host country it brings huge amount of money in country itself. This also contributes in the economic development of host country. As a result, host country grows faster and also provides new opportunities to those individuals who remain in the same country and avoids to move to another country.
2. Discuss the ways technology facilitates international business
Usage of technology is helpful in international business as it has minimised the level of trade barriers in international transactions. It can be said that there many ways which impacts over performance. And some of them are described as below:
- Telecommunication: Telecommunication services are helpful for international businesses as people are now using cell phones, beepers etc. for communication purpose. It can be said that after initiation of advance technology in telecommunication people are now able to execute their business promises by using regular interaction with their international clients and other business associated person. For example: With the help of advance telecommunication services business organisation can expand their business beyond the boundaries as they are now able to communicate with their clients in less period of time. This helps in satisfying clients demand easily.
- Transportation: With the changing world, technology has not only developed telecommunication sector but it has also done many innovation in transportation sector. It has been identified that after introduction of commercial jet crafts, containerization and other super freighters, transportation of goods has become simpler. On the other hand, commercial jet are helpful for international business person by saving their time of travelling. As, business persons travels maximum time to extend the level of their business. Containerization are also helpful in minimising the costing of shipment of goods which are transported for longer distances.
- Technology transfer: This way refers to process which allows technology to flow from one source to another. It can be said that these source can be any individual, country or it might be an organisation. In relation to international businesses, it has been identified that with the help of transfer of technologies companies can adopt latest technologies which is beneficial for their business growth.
3. How do shifts in political power affects global trade
Political power is the ability of political entity to influence behaviour of people to get desired results. It can also be viewed as the possession of resources that can influence outcomes in relation to international relationship and national standing. It plays a major role in the changes that take place in economy. A shift in political power impacts international trade and social dynamics of the community. Power is mainly concerned with money. As the centre of economy shifts from one place to another, political power shifts as well. The standards for measuring power of political entities are primarily population and territory, economic strength of country, military force and social stability. As a result of the shift, policies and laws of nation may change with respect to international relationships. It influences the access to markets at home and abroad. This can have positive or adverse effects on global trade. It impacts the size of country economies and markets to which access can be granted, denied or limited.
4. Discuss the extent to which you feel you are a member of a 'Global' society
I consider myself a vital part of global society as it is impossible to deny that what a person eats to what he wears is influenced by global community in which he lives. Being a part of global society means that there is power within a person to individually or by gathering several voices together to imply a change in society. My life has totally become globalized from connecting myself with people globally through Internet or desire to help disaster victims in other countries. It can also be seen in the eagerness that I have in exploring the music, art, food and destinations of different parts of world. Every person have a part of their life that is wholly associated with the global world.
5. Discuss the ways social media have influenced the spread of a global culture.
Social media refers to websites and applications through which people can connect with each others. This mode of media also helps people in sharing their ideas and thoughts with their family, friends and other public with whom they are connected. It can be said that social media influence global culture in many ways. Some of them are defined as below:
- Contributes in dealing with cultural challenges: Social media is helpful in sharing information related to different culture of people. It also conveys message of people with massive population as it most of us are using social sites and gives time in reading different posts and their concepts behind it.
- Upgrading people about health related issues: Social media also contributes in sharing of health related issues at global level. This can be that with the help awareness massive population can easily protect themselves as well as their related person from diseases.
As per the overall discussion it has been summarised that globalisation is considered as the most beneficial step which contributes in the development of countries. Along with this, it also contributes in increasing employment level across the world. As with the increase in trade among the countries, local people of those nations gets an opportunities to find best suitable jobs for them. It also helps employees to understand the importance of their own knowledge which can help them in achieving targeted goals. Globalization is consist of many types of risk which affects its growth and also initiates some sort of economic crisis.