SURIGAO EDUCATION CENTER

KM.4, Brgy.Luna, Surigao City

Globalization
(Term Paper)

Submitted by: Sulapas, Herjay R.

BS ARCHITECTURE 2

Submitted to: Mrs. Dodil Alaan

INSTRUCTOR
Abstract
World today recognises that Globalization ' has dramatic economic effects' which work as catalyst for the
economic development. Globalization has become watchword of the 1990's for an important structural
trend charecterising the dynamics of an evolving world economy and development.

This discussion paper approaches globlization, its role in development and its implications for developing
countries from gender perspective. It also try to highlight the cardinal issues like how globlization
engaging in constructive partenership with women in developing countries, how effectively it addressing
the situation of the poor, especially poor women, how entering into dialogue with policy makers of
developing countries and how providing development- oriented interventions in multilateral forums.

The challenge is to consider the complex and multidimentional concepts of globlization, development and
gender to understand key relationships and implications and then to groppel with them in the context of
development cooperation. Given the vast scope of globalization, this discussion paper only touches on
certain aspects of inter-relationships, rather than presenting an in-depth treatment of one concept. This
paper focuses on those aspect of globalization which likely to affect the opportunities and negotiating
power of women and the institutions that medeate on their behalf.

This paper basically structured in certain sections like concept and definition of globlization, pattern of
change associated with globalization, globalization and development and its impact on women labour,
economic generation of poor women and identified from perspective of development criteria and
interventions, it also touches the gender equality, empowerment and building of human capability, in the
last it also identifies some specific risk and vulnerability posed by globalization process.

Finally, paper concluded that the premise of this discussion paper is the strategic development assistance
interventions should include an understanding of how , in a particular localiy,the dynamics of
globalization and gender are interacting.

Introduction
This process has effects on the environment, on culture, on political systems, on economic development
and prosperity, and on human physical well-being in societies Globalization is a process of interaction
and integration among the people, companies, and governments of different nations, a process driven by
international trade and investment and aided by information technology. around the world.

Globalization is not new, though. For thousands of years, people—and, later, corporations—have been
buying from and selling to each other in lands at great distances, such as through the famed Silk Road
across Central Asia that connected China and Europe during the Middle Ages. Likewise, for centuries,
people and corporations have invested in enterprises in other countries. In fact, many of the features of the
current wave of globalization are similar to those prevailing before the outbreak of the First World War in
1914.

But policy and technological developments of the past few decades have spurred increases in cross-border
trade, investment, and migration so large that many observers believe the world has entered a
qualitatively new phase in its economic development. 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. Distinguishing this current wave of globalization from earlier ones, author
Thomas Friedman has said that today globalization is “farther, faster, cheaper, and deeper.”

This current wave of globalization has been driven by policies that have opened economies domestically
and internationally. In the years since the Second World War, and especially during the past two decades,
many governments have adopted free-market economic systems, vastly increasing their own productive
potential and creating myriad new opportunities for international trade and investment. Governments also
have negotiated dramatic reductions in barriers to commerce and have established international
agreements to promote trade in goods, services, and investment. Taking advantage of new opportunities
in foreign markets, corporations have built foreign factories and established production and marketing
arrangements with foreign partners. A defining feature of globalization, therefore, is an international
industrial and financial business structure.

Technology has been the other principal driver of globalization. Advances in information technology, in
particular, have dramatically transformed economic life. Information technologies have given all sorts of
individual economic actors—consumers, investors, businesses—valuable new tools for identifying and
pursuing economic opportunities, including faster and more informed analyses of economic trends around
the world, easy transfers of assets, and collaboration with far-flung partners.

Globalization is deeply controversial, however. Proponents of globalization argue that it allows poor
countries and their citizens to develop economically and raise their standards of living, while opponents
of globalization claim that the creation of an unfettered international free market has benefited
multinational corporations in the Western world at the expense of local enterprises, local cultures, and
common people. Resistance to globalization has therefore taken shape both at a popular and at a
governmental level as people and governments try to manage the flow of capital, labor, goods, and ideas
that constitute the current wave of globalization.

EFFECTS OF GLOBALIZATION ON BUSINESS MANAGEMENT IN

DEVELOPED COUNTRIES.

Globalization has brought benefits in developed countries as well as negative effects. The
positive effects include a number of factors which are education, trade, technology, competition,
investments and capital flows, employment, culture and organization structure.

POSITIVE EFFECTS

It would be rather difficult to discuss the extent of the positives that globalization has had on the
world at large. But still, here are some of the positive effects of globalization and the positive
impacts they have had on so many demographic segments of society.

Global market.

Most successful emerging markets in developed countries are a result of privatization of state
owned industries. In order for these industries to increase consumer demand many of them are
attempting to expand and extend their value chain to an international level. The impact of
globalization on business management is seen by the sudden increase of number of transactions
across the borders. In protecting yields and maintaining competitiveness, businesses are
continuing to develop a wide range of their footprint as it lowers cost and enjoys economies of
scale (Shah A.,2009)

Multinational corporations is a result of globalization. They occupy a central role within the
process of globalization as evidenced through global foreign direct investment inflows. Their
concentrations within Europe in western economies has led to size constraints, therefore there is
a need for new geographical areas to operate whereby they will face a lot of competition in the
market. Through this they will enlarge their market and enjoy economies of scale as
globalization facilitates time space compression, economies compete at all levels including that
of attracting investors (Smith V.A and Omar M.,2005).

Cross-cultural management

Globalization tend to be the realm of elite because in many parts of the world they are the only
people who are affluent enough to buy many of the products available in the global marketplace.
Highly educated and wealthy people from different backgrounds interact within a westernized
milieu. Western styles, since are symbols of affluence and power, the elite often embraces
western styles of products and pattern of behavior in order to impress others. Today Western
culture and patterns of behavior and language are staples of international business (Asgary N.
and Walle A.H.,2002).

United states seems to have powerful impact upon many other countries and societies. The world
today has a popular cultural force. The popular consumer culture of the economically dominant
West is relentlessly and inevitably transforming other regions, cultures, nations and societies. In
addition, such perspective imply that technological change, mass media, and consumer oriented
marketing campaigns work in tandem to remake whatever they touch in their own image. Even
attitudes and ideas about society, religion and technology are transformed by cultural diffusion
brought by globalization. Example, in America McDonalds represent fast, cheap and convenient
food while it is not the same worldwide. It’s of high price in other countries like China and
Russia where it involves cultural experience (Walle A.H, 2002)

Foreign trade

Globalization has created and expanded foreign trade in the world. Things that were only found
in developed countries can now be found in other countries across the world. People can now get
whatever they want and from any country. Through this developed countries can export their
goods to other countries. Countries do business through international trade, whereby they import
and export goods across the global. These countries which export goods get comparative
advantages. Organizations have been established with a view to control and regulate the trade
activities of the countries in the world so to have fair trade. World trade organizations emerged
as a powerful international organization capable effectively influencing individual governments
to follow international trade rules, copyrights, policies on subsidies, taxes and tariffs. Nations
can not break rules without facing economic consequences (Piaseck R. and Wolnicki M., 2004) .
The number of nations that are dependent on trade, foreign capital, and the world financial
markets increased greatly. Countries engaged in foreign trade enjoy comparative advantage. The
post Recardian trade theories predicted that specialization in labor and capital intensive goods
would bridge enormous wage gaps between the poor and the rich countries, that is the
developing and developed countries, sparing the latter from massive labor immigration (Gerber
J., 2002).

Resource Imperative

Developed countries need natural and human resources of the developing countries while
developing countries need capital, technology and brainpower of the wealthier countries.
Developed countries’ economies are increasingly dependent on the natural and human resources
of the developing nations. Growing interdependence of nations and their activities on one
another fostered by the depletion of natural resources; as well as overpopulation (Harris
P.R.,2002).

Foreign investment

One of the most visible positive effects of globalization in India is the flow of foreign capital. A
lot of companies have directly invested in India, by starting production units in India, but what
we also need to see is the amount of Foreign Investment Inflow that flows into the developing
countries. Indian companies which have been performing well, both in India and off the shores,
will attract a lot of foreign investment, and thus pushes up the reserve of foreign exchange
available in India. This is also one of the positive effects of globalization in US and other
developed countries as developing countries give them a good investment proposition.

Managers’ objectives might not be the same with those of stockholders in some situations. The
more complex the corporation the more difficult it is for shareholders to monitor management’s
actions whereby it provides the managers more freedom to act in their own self interest at the
expense of shareholders. Multinational firms are more complex than national firms. Managers
might favor international diversification because it reduces firm specific risk or adds to their
prestige. These goals might be of little interest to shareholders. This divergence of interests
between shareholders and managers, might reduce the value of multinationals relative to
domestic firms (Saudagaran S.M.,2002)

Competition

One of the most visible positive effects of globalization is the improved quality of products due
to globe competition. Customer service and the ‘customer is the king’ approaches to production
have led to improved quality of products and services. As the domestic companies have to fight
out foreign competition, they are compelled to raise their standards and customer satisfaction
levels in order to survive in the market. Besides, when a global brand enters a new country, it
comes in riding on some goodwill, which it has to live up to. This creates competition in the
market and a survival of the fittest situation.

Culture
The positive effects of globalization on culture are many! Not all good practices were born in
one civilization. The world that we live in today is a result of several cultures coming together.
People of one culture, if receptive, tend to see the flaws in their culture and pick up the culture
which is more correct or in tune with the times. Societies have become larger as they have
welcomed people of other civilizations and backgrounds and created a whole new culture of their
own. Cooking styles, languages and customs have spread all due to globalization. The same can
be said about movies, musical styles and other art forms. They too have moved from one country
to another, leaving an impression on a culture which has adopted them.

Legal Effects

Increased media coverage draws the attention of the world to human rights violations. This leads
to improvement in human rights. Global economic growth does not necessarily make people
happier, worldwide free trade, should also benefit humanity as well as protect nature, not just
reward managers and stockholders. Those who would be authentic leaders need to address
inequalities. Globalization should promote openness and information along with exchange with
greater democracy and prosperity (Harris P.R., 2002).

Gone are the days where the limited jurisdiction became a hindrance in the prosecution of
criminals. These days due to international courts of justice, these criminals can no longer seek
asylum in a foreign country, but will be brought forward and there will be justice. Due to
globalization, there is also an understanding between the security agencies and the police of two
or more different countries who will come together to curbglobal terrorism. Hence, it is now
possible to catch the perpetrators of crime irrespective of which country they choose to hide in.
This is undoubtedly one of the greatest positive effects of globalization on society.

EFFECTS OF GLOBALIZATION ON BUSINESS MANAGEMENT IN

DEVELOPING COUNTRIES.

POSITIVE EFFECTS.

“I know that globalization has also created many negative effects, but I believe it’s always better
to look to the future with optimism and hope. Tomorrow, hopefully, we will be able to minimize
or even eradicate the evil forces that give globalization a bad name. Thus we will be able to
move forward with peace and harmony”(Kulkami A., 2009)

Poverty alleviation

As far as poverty reduction is concerned, globalization played a role in poverty reduction in

developing countries. In deed most developed countries experienced reduction in poverty in the
proportion of their living below the poverty line, including fast developing countries like China,
India, Vietnam. While other countries like Sub-Saharan Africa registered an opposite trend (Lee
E., 2006).

Employment situation.
Through globalization, people from different countries are provided with jobs opportunities
within the global. It has created the concept of outsourcing. Developed countries prefer to
provide work to developing countries where costs are cheap. Work such as customer support,
software development, accounting, marketing and insurance are given to developing countries
like India. Therefore the country that is given the work enjoys by getting jobs.

It has given an opportunity to invest in the emerging markets and tap up the talent which is
available there. In developing countries, there is often a lack of capital which hinders the growth
of domestic companies and hence, employment. In such cases, due to global nature of the
businesses, people of developing countries too can obtain gainful employment opportunities
(Pillai P.,2008).

Technology

This is a powerful force that drives the world toward a converging commonality. It has
proletarianized communication, transport, and travel. People from different places everywhere
wants all the things they have heard about, seen, or experienced through technology.
Organizations through its managements can obtain knowledge from different places in the world
that can be used in the organization.

Television and medias played a big role in influencing the perception of the world, from a
relatively small national unity and reality, into a global market and international concerns. As
multinationals establish subsidiaries in new locations, they transfer know how from the parent to
the local operation. Knowledge flows from one unit to another as a whole organization benefits
from development activity. One of the ways that organizations use in knowledge transfer is the
movement of personnel, which takes place within multinationals. This build up a bank of
knowledge about working in different situations with people from different cultures and this
represents a stock of knowledge that could be developed and used to benefit the organization
(Kamoche, 1997).

Education.

Globalization from the point of view has positive effects as well as negative effects. It has
increased the access of higher education example universities and reducing the knowledge gap in
developing countries, it equally has negative aspects which can seriously threaten universities in
those countries. From point of view it has brought more positive effects to developing countries
through increasing access to higher learning institutions. Today you can move in the search of
the best educational facilities in the world including developing countries without any hindrance.
This is due to increased output from secondary schools, greater participation of women in higher
education, a growing private sector demand for graduates, and the exorbitant costs of acquiring
education in foreign countries, especially those in the nort (Mohamedbhai G., 2002).

References:
https://isaconf.confex.com/isaconf/forum2016/webprogram/Paper79792.html
https://www.globalization101.org/what-is-globalization/

https://www.ukessays.com/essays/economics/positive-and-negative-effects-of-globalisation-
for-business-economics-essay.php

http://www.oxfamblogs.org/fp2p/?p=1872

http://www.unescap.org/esid/hds/issues/GlobalizationHealth.pdf

http://www.un.int/turkey/3.pdf least developed countries