ipl-logo

Four Characteristics Of Globalization

2077 Words9 Pages

Introduction

Driven by new technologies and economic relationships, economies and societies are increasingly integrating on a world scale. This integration is better known as globalization (Gunter & Van der Hoeven, 2004). The first section of this paper states the four characteristics of globalization: international trade; internalization of capital: international production; and the social dimension of globalization (Gunter & Van der Hoeven, 2004). These terms help to better understand the implications of globalization and, in fact, the paper builds upon the international production characteristic. The second section of this paper discusses the views of proponents and opponents on globalization. On the one hand, proponents believe that globalization …show more content…

In order to understand the impact of globalization better, it can be divided into several key characteristics. The first characteristic is international trade. As stated in Gunter and Van der Hoeven (2004), on-going liberalization of markets and borders is a substantial contributor to increasing international trade. As a result, it can be seen, that protective countries lag behind open countries. Additionally, Gunter and Van der Hoeven (2004) distinguish between four country groups: (a) China and India; (b) the low-income countries; (c) the middle-income countries; and (d) the high-income countries. Overall, the latter two experience the highest trade increases at the expense of the low-income countries. Consequently, a vast number of low-income countries are excluded from the global …show more content…

As stated in Han and Bae (2014), MNCs need to consider learning from external organizations’ experiences and knowledge in order to remain innovative and competitive in an increasingly globalizing world economy. External knowledge comes from three different sources. Firstly, customers are one of the primary sources for external knowledge and innovation. Secondly, competitors are a source of external knowledge and are often thoroughly monitored and analysed by MNCs to benchmark their level of innovation. Thirdly, external organizations like universities and other firms can help MNCs with the needed knowledge and experience. For this paper, the latter, specifically R&D outsourcing is the source upon which focus is placed. R&D outsourcing can be described as “formally establishing a partnership with others that have an expertise in a specific R&D area” (Han & Bae, 2014, p. 63). Overall, it is seen as an effective strategy to open innovation and exploiting external knowledge. Technological capabilities or know-how are demanded from external organizations in R&D or universities. Consequently, aforementioned capabilities are transferred from external sources to MNCs with the help of R&D outsourcing (Han & Bae, 2014)
Martinez-Noya et al. (2012) classify three different outsourcing

Show More
Related

  • Ledcs Face Along With The Advancement Of Globalization

    982 Words  | 4 Pages

    The development of free trade has become more controversial since the end of the Second World War due to rising openness to other countries and cultures. In terms of trade, globalization refers to 'as increasingly borderless trade that develops between countries and territories or countries and countries' (Archana, 2015). Along with the growing inter-connectedness of the world, the liberalization of trade policies has favored globalization amongst many countries and has led to an introduction of new agreements such as trade blocs in which several countries make an agreement to eliminate protectionist measures such as tariffs and quotas to facilitate the flow of goods and services. Easier transportation of goods and services across borders has reduced unnecessary costs which made the cost of goods themselves cheaper and more accessible. NAFTA is a good example of the situation where several countries agree to a partnership that makes imports and exports less costly.

    Read More

  • Julius In Open City Globalization

    1126 Words  | 5 Pages

    The similarities between the two’s perspectives regarding the topic are also strikingly similar--adding to the validity and developing a concrete explanation. Each writer has their distinct, personal definition of globalization, however unignorable similarities exist between the

    Read More

  • Kwame Anthony Appiah's Argument Analysis

    627 Words  | 3 Pages

    Kwame Anthony Appiah Argument The answer to the globalization pandemic is cosmopolitanism. Globalization is described as being negative according to Kwame Anthony Appiah it’s a one-way thinking or a one-way frame of mind. We are responsible for ourselves and things should be done on our individual terms. An example he gives is “I want you to be my brother on my terms.”

    Read More

  • Target Corporation Swot Analysis Paper

    661 Words  | 3 Pages

    In order to determine the whether an outsourcing activities would have a positive or negative impact an evaluation of the activity should be undergone. This evaluation examines the required coordination, strategic control, and intellectual property characteristics of the activity (Chase & Jacobs, 2013, p.444). The required coordination aspect examines the difficulty to complete the activity with limited interaction due to geographical locations. Outsourcing an activity that would result in a large amount of back-and-forth exchange would not be wise to proceed (Chase & Jacobs, 2013, p.444).

    Read More

  • Airbnb Case Study Globalization

    1557 Words  | 7 Pages

    3. Globalization Throughout the last decades, globalization became a real phenomenon, but history tells us that it is actually not a new social, historical phenomena, but has, under different names and manifestations, been with us for a long time. It is actually not only the continuation of the liberalization of international trade, which began in the mid-19th century with the launch of cross-border trade over long distances and later with intensive large-scale mobility of labor and capital. During capitalism, globalization has amplified due to the lust for profit, which is driven by capitalists across the globe. Indeed, globalization has significantly strengthened ever since.

    Read More

  • Globalization Case Study: Amazon

    1105 Words  | 5 Pages

    I. INTRODUCTION a. BACKGROUND: Globalization is a process of interaction and integration among the people, companies, and governments of different countries, a procedure compelled by international trade and investment, and supported by information technology. Furthermore, this process has an effect on various other systems such as on the environment, culture, political systems, economic development and prosperity and lastly, on human physical well-being in societies around the world. “Since 1950, for example, the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to $827 billion” (York, 2016). Technology has been another primary driver of globalization,

    Read More

  • Transaction Cost Theory, Resource-Based Theory and Relational Exchange Theory: A Comparison

    1050 Words  | 5 Pages

    Literature Review on Fundamental Theories IT outsourcing is a topic that not in short of theories. During the last 3 decades, a large amount of empirical work across the last three decades has been guided by three main categories of theories. Those theory groups further developed into different schools which are the base for analyzing the impacts of outsourcing activities. In this research, empirical work based on three most important theories from economic (Transaction cost theory), strategic (Resource- based theory) and social category( relational/ social theories ) were selected for an in depth discussion. No claims are made that any one theory outperforms others.

    Read More

  • Main Causes And Drivers Of Globalization

    1004 Words  | 5 Pages

    2. Main causes and drivers of globalization The treaty of Westphalia in 1648, has been known to be the beginning of the system of sovereign states. Unlike the previous treaties, the treaty of Westphalia drew up a list of core principles, which re-defined the conception of the state; territories were defined, and the lands uninfringeable. Supremacy of the nation-state became accepted as the norm and hence allowed growth of international relations (Pant, 2011).

    Read More

  • Informative Speech: The Benefits Of Outsourcing Is Good

    1192 Words  | 5 Pages

    Shiva Chhetri Mariya and Carli Amber Randall 9:00-9:50am 03/02/2018 OUTSOURCING IS GOOD Specific Purpose: To persuade my audience that outsourcing is a good practice and is also beneficial to the American market. Central Idea: When talking about outsourcing the general consensus seems to be that it is a bad practice and is non-ethical. However, few understand the real benefits that come from this practice past the idea that it is a taboo in our country.

    Read More

  • Hofstede's Dimensions Of Globalization Analysis

    1022 Words  | 5 Pages

    In the late 1980s, globalization theory started to emerge as the new forms of capitalist hegemony appeared (Savage, Bagnall and Longhurst, 2004). Globalization is a process of encouraging closer political, economic, social interaction and break down or reducing the trade barriers between countries (Mittelman, 2000). It can be divided into two main categories: globalization of markets and globalization or production. Globalization of markets is a process of the worldwide market integration and has created a global market place (due to countries are reducing trade barriers). For example, in this 21st century, products that we consume or access are no longer from just one person, company or place but globally as the presence of the global market

    Read More

  • Globalization And Nations

    1615 Words  | 7 Pages

    Globalization and Nation States Globalization has integrated and intertwined the economies of the world. In the world today, every nation has become independent on every other nation, be it through trade or through finance. Developing countries today are attracting large rounds of foreign investment, and this foreign investment is coming from the developed countries. Thus, the money of the developed countries is today invested in the developing countries.

    Read More

  • Wto And Globalization Essay

    1014 Words  | 5 Pages

    What can be defined by economic globalisation is the increasing economic integration and interdependence of national, regional and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital. Whereas globalisation is a broad of set of processes concerning multiple networks of economic, political and cultural interchange, contemporary economic globalisation is propelled by the rapid growing significance of information in all types of productive activities and by the developments in science and technology. Some theorist also defined Globalisation as a historical stage of accelerated expansion of market capitalism, like the one experienced in the 19th century with the

    Read More

  • Ethical Issues In International Business

    730 Words  | 3 Pages

    Introduction Globalization is a fact of Economic Life – Carlos Salinas De Gortari. Globalization is not a new thought. This process of interaction and integration among the companies, people and government of different countries is happening from ages. Technology has been the major driver of globalization. Economic life has been transformed dramatically by the advances in information technology.

    Read More

  • Advantages And Disadvantages Of The G20

    1826 Words  | 8 Pages

    This paper will explore both the advantages and disadvantages that globalization has on the world. Globalization is good for economy. First, Enterprises can operate internationally, and production can be produced internationally. Similar to poor countries like Africa, although they are poor, they have a lot of cheap labor, other countries will make their goods

    Read More

  • Essay On Causes Of Globalisation

    2111 Words  | 9 Pages

    Introduction Globalisation is the process that brings together the complaints nations of the world under a unique global village that takes different social & economic cultures in to consideration. First this essay will analyse globalisation in a broader term, second the history and foundation of globalisation that were intended to address poverty and inequality, third the causes that lead to globalisation and the impact that globalisation has on the world’s economy. The participation in the global economy was to solve economic problem such as poverty and inequality between the developed and developing nations. What is Globalisation?

    Read More

More about Four Characteristics Of Globalization

Open Document