Negative Effects Of Globalisation

Globalisation

Introduction

Before 25 years or so no one imagines that s/he can buy a t-shirt or even a meal from a different country by their selves and it will be shipped in few days. Globalisation is considered one of the greatest milestones that have happened to the world. Although the term globalisation is founded in the nineteenth century, the application of this concept become obvious and widely use in the last 25 years (Dicken, 2007). The next section of this report defines globalisation term. In addition, the second section mentions some of the positive and negative impacts of globalisations. The third section discusses the impacts of globalisation on how business operates. Finally, the last section concludes the report.

1. What is

For instance, The United Nations Educational, Scientific and Cultural Organization (UNESCO) defines globalisation as the continuing procedure that is connecting people all over the world regardless of their geographical areas [4]. Furthermore, Parker B. argued that globalisation can be defined as a procedure where people all over the world linked and interacts in all the activities that have expanding domains. (Parker, 2005). In addition, some researchers define the globalisation from particular aspects. For instance, (Homann, Koslowski, C Luetge, 2007) focus their definition of globalization on the enhancement that makes industrial production, government, and financial procedures international.

2. Globalisation Drivers

Various factors helped to cause globalisation following are some of the most important factors (Pettinger, 2003):

1. The existing of internet and technology devices, e.g. computers, televisions, ...etc. facilitate and support the way of interactions and communications between people and organizations.

2. Transportation improvement facilitates the travel and goods movement between countries. One of the goods transportation ways is containerisation which is the use of standard steel container in order to ship goods and move it easily between different transportations.

3. Cross-national agreements such as European Union (EU) and the North American Free Trade Agreement (NAFTA) that minimize

Moreover, in some countries that have a low scale of labor salaries, the local businesses cannot compete with multinational industries job offers.

4. How business operates:

The complex interconnection all over the world affects the way that business operates. Every company and organization should be aware of globalization and its impact in order to survive in the economic world. As Parker mention in his book (Parker, 2005) “Although many organizations are not global, virtually all are affected by globalization”.

According to (Friedman, 2005) The rapid development of technology under the globalisation umbrella affects how the business operates by developing new business processes that reshaped global economics and politics in the beginning of 21st century. For instance, new players such as china’s leaders they decided to have an open economy to magnetize all world investment and agreements, low-wage, human power and policy and that helps china became the factory of the world.