In addition, advancement of technology, growth in economy, higher living standards likely widen the gap between the rich and the poor and lose the balance in society. Nevertheless, these disadvantages do not outweigh the achievements human obtain through economic globalization. It is well-demonstrated that any nation which does not follow the nature of this process will confront with a lot of political issues, particularly North Korea and Iraq. Due to resistance to foreign influences, two countries have to unilaterally fight with the inner chaos, and watch carefully outer
Transaction Cost Theory provides implicit link between cultural distance and market entry. Since high cultural distance is associated with higher transaction costs, therefore it is more likely to lead a high-control market entry model (Hennart & Larimo, 1998; Brouthers & Brouthers, 2001; Luo, 2001; Shenkar, 2001). In contrast, high cultural distance raises the information costs and the difficulty of transferring competencies and skills (Shenkar, 2001). It also increases the level of uncertainty and complexity when entering the new market. Hennart & Larimo (1998) propose that limited information about local conditions may push a company to choose a low-control entry model, whereas it will adopt high-control acquisition when it is confident to operate alone in that country.
One of globalization’s major outcomes that we cannot neglect is cultural hybridization, which is the mixture of various cultures from Asian, American, African to European (Pieterse 1995, p.). Nowadays, the hybridity of cultures are frequently adapted into popular culture production of films and music. Thus, we are now bombarded with a huge wave of globalized knowledge and mixed culture overcame the boundaries of time and space, which created a sense that the world is one place and we are blending together. espite the major advantages, globalization may resulted in a loss of identity within nations (Featherston 1995, p.89). Therefore the nation states now have to face double pressure from both the globalization process and cuture reservation.
It does have a significant role in a person’s life. It is said that pop culture is produced for the consumption of the masses. It is what they call mainstream, the easiest thing to have access to, what is “IN” and etc. (Campbell) Some good example are the songs, foods, clothing, expressions, technologies and etc. Which in return gives an impact whether it is a positive or negative one for the consumers especially base on what they are able to hear, taste, wear, say and etc.
Economic Globalization and the Fears of the Small Many authors consider the economic globalization as the pillar of the entire phenomenon over which other components are built. Although the globalization has many complex and very dynamic processes, the particular process that involves strengthening and expanding the relations between the national economies is the key factor to support the globalization in its other domains (Pogge, 2007). The fear of the developing countries that the process of globalization jeopardizes their economic development and that they can end up in some new neocolonialism stems from the fact they are not able to compete effectively on equal basis with the countries of the developed part of the world. Although the technological change creates many opportunities, in order to take any advantage of them, the developing countries have to be able to cope with the competition from the developed economies, stress Alvarez at al. (2009).
Consumerism might be known as an answer to our problem, an escape from the mundane reality. Some city centres are also sites of consumption like our home might be described as temples to the religion of consumerism; our lives apparently amount little more than a comparison of diverse consumer styles and tastes. From this, we can know that we are indeed what we consume. But this might not be the case as we things we consume might be merely what prescribed to us. The fact that our lives are not solely determined by our relationship to means of production or to where we work is sociology of consumption.
State-promoted tourism established an economic setting in which cultural forms are readily packaged as market commodities. Local people participate in the tourist industry out of economic necessity and/or political pressure. (Edited by Michel Picard and Robert E. Wood. Tourism, Ethnicity, and the State in Asian and Pacific Societies,1997: University of Hawai’i Press p.218 ) After declined of tin-mining era, state conducted direction of economic development in Phuket province. Turn the tin-mining town to tourism destination.
2.2.3 Information about MNEs Traditionally, multinational enterprises are majorly from developed countries. These MNEs are always possessing large amount of capital, advanced technologies, management skills and they have established comprehensive policies. To some extent, they can globally exploit more markets with support of their inherent advantages. There are various definitions and descriptions of the characteristics for these MNEs. According to Caves (1996), multinational enterprises are those enterprises that have possessed overseas subsidiaries and have tight control and management.
It also places certain people within the spectra of the economy. This is because politics has the ability to define who has the economic resources. We note that in the global context as well, there are consequences of unequal distribution of resources. An unequal resource distribution may lead to a political unrest and according to Acemoglu and Robinson (2006), “economic institutions are endogenous”. This means that some individuals will be given more benefits than others in economic resources which may end up in a total decline in economic growth.
The bad side of globalization predominantly revolves around the fact that the preferences differ from nation to nation, and coming to a consensus on any issue becomes more difficult when too many nods are required. When it comes to globalization, the difference between the rich and poor nation can be a major hindrance. Even though the richer nations will try to assimilate and help poor nations come up, they will not sacrifice on their national interests willingly. Economic Problems: If the entire world becomes a global village, any sort of economic disruption in one nation will have a disastrous impact on various other nations which are closely related to it in terms of trade and commerce. It will be a domino-effect wherein disturbance in one economy would result in disturbance in another, and so