What is Globalization?

Before discussing the benefits and challenges of globalization, it’s essential to

have a strong understanding of what the term means.
The official definition of “globalization” is the process by which businesses or
other organizations develop international influence or start operating on an
international scale.
More simply, globalization refers to an open flow of information, technology,
and goods among countries and consumers. This openness occurs through
various relationships, from business, geopolitics, and technology to travel,
culture, and media.
Because the world is already so connected, most people don’t notice
globalization at work every single day. But the world is getting smaller, and
companies need to understand what this means for the future of doing
business. Companies that don’t embrace globalization risk losing a competitive
advantage, which allows other businesses to take over new opportunities in the
global marketplace.
What Are the Benefits of Globalization?
Globalization impacts businesses in many different ways. But those who decide
to take on international expansion find several benefits, including:
1. Access to New Cultures
Globalization makes it easier than ever to access foreign culture, including food,
movies, music, and art. This free flow of people, goods, art, and information is
the reason you can have Thai food delivered to your apartment as you listen to
your favorite UK-based artist or stream a Bollywood movie.
2. The Spread of Technology and Innovation
Many countries around the world remain constantly connected, so knowledge
and technological advances travel quickly. Because knowledge also transfers so
fast, this means that scientific advances made in Asia can be at work in the
United States in a matter of days.
3. Lower Costs for Products
Globalization allows companies to find lower-cost ways to produce their
products. It also increases global competition, which drives prices down and
creates a larger variety of choices for consumers. Lowered costs help people in
both developing and already-developed countries live better on less money.
4. Higher Standards of Living Across the Globe
Developing nations experience an improved standard of living—thanks to
globalization. According to the World Bank, extreme poverty decreased by 35%
since 1990. Further, the target of the first Millennium Development Goal was to
cut the 1990 poverty rate in half by 2015. This was achieved five years ahead of
schedule, in 2010. Across the globe, nearly 1.1 billion people have moved out of
extreme poverty since that time.
5. Access to New Markets
Businesses gain a great deal from globalization, including new customers
and diverse revenue streams. Companies interested in these benefits look for
flexible and innovative ways to grow their business overseas. International
Professional Employer Organizations (PEOs) make it easier than ever to employ
workers in other countries quickly and compliantly. This means that, for many
companies, there is no longer the need to establish a foreign entity to expand
overseas.
6. Access to New Talent
In addition to new markets, globalization allows companies to find new,
specialized talent that is not available in their current market. For example,
globalization gives companies the opportunity to explore tech talent in booming
markets such as Berlin or Stockholm, rather than Silicon Valley. Again,
International PEO allows companies to compliantly employ workers overseas,
without having to establish a legal entity, making global hiring easier than ever.
What are the Challenges of Globalization?
While globalization offers many benefits, it’s not without challenges. Velocity
Global’s 2020 State of Global Expansion™ Report: Technology Industry reveals
some of the top challenges that U.S. and UK tech leaders face when taking their
companies global, and leaders of other companies likely face the same
obstacles.
Some of the hurdles companies face when going global include:
1. International Recruiting
It’s not surprising that 30% of U.S. and UK tech leaders cited international
recruiting as their most common challenge. Recruiting across borders creates
unknowns for HR teams. First, companies create a plan for how they will
interview and thoroughly vet candidates to make sure they are qualified when
thousands of miles separate them from headquarters. Next, companies need to
know the market’s demands for salaries and benefits to make competitive
offers. To ensure successful hires, HR teams must factor in challenges like time
zones, cultural differences, and language barriers to find a good fit for the
company.
2. Managing Employee Immigration
Immigration challenges cause a lot of headaches internally, which is why 28% of
U.S. and UK tech leaders agreed it was one of their top challenges. Immigration
laws change often, and in some countries, it is extremely difficult to secure visas
for employees that are foreign nationals. The U.S., for example, is getting stricter
with granting H-1B visas, and Brexit makes the future of immigration to the UK
uncertain.
 3. Incurring Tariffs and Export Fees
Another challenge both U.S and UK tech leaders said they face in the report is
incurring tariffs and export fees—29% agreed this is a challenge for their global
businesses. For companies looking to sell products abroad, getting those items
overseas can be expensive, depending on the market.
4. Payroll and Compliance Challenges
Another common global expansion obstacle is managing overseas payroll and
maintaining compliance with changing employment and tax laws. This
management task gets even more difficult if you’re trying to manage operations
in multiple markets.
5. Loss of Cultural Identity
While globalization has made foreign countries easier to access, it has also
begun to meld unique societies together. The success of certain cultures
throughout the world caused other countries to emulate them. But when
cultures begin to lose their distinctive features, we lose our global diversity.
6. Foreign Worker Exploitation
Lower costs do benefit many consumers, but it also creates tough competition
that leads some companies to search for cheap labor sources. Some western
companies ship their production overseas to countries like China and Malaysia,
where lax regulations make it easier to exploit workers.
7. Global Expansion Difficulties
For businesses that want to go global and discover the benefits of globalization,
setting up a compliant overseas presence is difficult. If companies take the
traditional route of setting up an entity, they need substantial upfront capital,
sometimes up to $20,000, and costs of $200,000 annually to maintain the
business. Additionally, global businesses must keep up with different and ever-
changing labor laws in new countries. When expanding into new countries,
companies must be aware of how to navigate new legal systems. Otherwise,
missteps lead to impediments and severe financial and legal consequences.
8. Immigration Challenges and Local Job Loss
The political climates in the United States and Europe show that there are
different viewpoints on the results of globalization. Many countries around the
globe are tightening their immigration rules, and it is harder for immigrants to
find jobs in new countries. This rise in nationalism is mainly due to anger from
the perception that foreigners fill domestic jobs or at companies moving their
operations abroad to save money on labor costs.
For example, the Economic Policy Institute reports that the U.S. trade deficit
with China (or the amount by which our imports exceed our exports) cost
Americans 3.4 million jobs since 2001.
How Globalization Changes Your Daily Businesses
Operations
Both the benefits and challenges of globalization change how a business
operates in different ways. When companies decide to go global, they must be
ready and willing to change internal processes. This helps to accommodate new
markets and make their global workforce feel comfortable and accepted at
work.
Companies see many aspects of their businesses change once they enter the
global marketplace. For example, globalization makes the workforce more
diverse. This diversity is an overall positive change, but it creates some
challenges, such as language barriers and differences in cultural expectations. 
Some operational changes companies should expect from globalization include:
1. Global Communication Challenges
Before starting to branch out from headquarters, firms have to put an
established internal communication plan in place since global employees likely
work in a different time zone and have a different native language.
Software and other digital tools help smooth global communication hurdles and
allows teams to connect easily. Zoom, Slack, and Google all provide valuable
tools for companies trying to manage employees in multiple offices, countries,
and time zones.
2. International Employee Expectations
Foreign employees have different expectations when it comes to things like
salary and benefits, as well as how they manage their daily work schedules.
Companies that want to take advantage of globalization and hire foreign
workers need to accommodate them as much as possible. HR teams must also
ensure their offers are competitive and on-par with local expectations during
the hiring process.
3. Supporting Foreign Customers
Similar to communication changes with employees, companies must also plan
for how they run customer service and support in new countries. Customers in
the new market where you offer your products or services might not speak your
native language or be close to your time zone.
4. Increased Competition
International companies have to adjust more than internal operations. Going
global opens up new revenue streams and increases availability to talent.
Because of these attractive benefits, and the ease of going global due to services
like International PEO, the global marketplace is competitive. As globalization
becomes the norm, many companies often seek the same foreign markets,
which increases competition for businesses.
5. Marketing and Communication Changes
Just like hiring employees in different countries creates internal communication
challenges, marketing your products or services to a completely new audience
creates obstacles for companies. Businesses need to adjust their marketing
strategies to communicate the benefits of their product in a way that resonates
with a foreign audience. You cannot assume that a marketing campaign
targeting an American audience (or wherever your HQ location is) attracts
consumers in Europe, Asia, or any other popular market, as the consumers
there have very different wants and needs.
Go Global with the Right Partner
In the past, cost and regulatory challenges were massive barriers to companies
going global in search of the benefits of globalization.
Now, partnering with a globalization expert helps firms navigate any challenge
that comes their way—while successfully setting up an overseas presence.
Our International PEO solution helps organizations establish a presence in new
international markets, without the time and costs associated with entity
establishment.
The right International PEO partner helps your company experience the benefits
that globalization has to offer and quickly become a successful player in the
global marketplace. Ready to go glo
The 1995 Constitution of Ethiopia is the supreme law of the Federal Democratic Republic of
Ethiopia. This document came into force on August 21st, 1995. The constitution was drawn
 up by the Constituent Assembly that was elected in June 1994. It was adopted by
the Transitional Government of Ethiopia in December 1994 and came into force following
the general election held in May–June 1995.[1]
The constitution consists of 106 articles in 11 chapters. Articles I-VII contain general
provisions on matters of nomenclature of state, territorial jurisdiction, and the Ethiopian flag;
Articles VII-XII describe sovereignty, supremacy of the constitution, democratic rights,
separation of state and religion, and accountability of the government. It provides for
a federal government of nine ethnically based regions governed by a parliament divided into
the House of Peoples' Representatives and the House of Federation. It provides for a
parliamentary system, with a mostly ceremonial President as head of state, and executive
power vested in a Council of Ministers headed by a Prime Minister.
The constitution expressly provides for a set of basic human rights; Article 13 specifies that
these rights and freedoms will be interpreted according to the Universal Declaration of Human
Rights, the International Covenant on Civil and Political Rights, and other international
instruments adopted by Ethiopia. The document further guarantees that all Ethiopian
languages will enjoy equal state recognition, although Amharic is specified as the working
language of the federal government.
Ethiopia has a tradition of highly personal and strongly centralized government, a pattern
the Ethiopian People's Revolutionary Democratic Front (the coalition presently in government)
has followed despite constitutional limits on federal power. [1]
The first general election held after the adoption of the Constitution was the 2000 election.
There were three earlier written constitutions of Ethiopia, the preceding one being the 1987
Constitution.
The 1931 Constitution of Ethiopia was the first modern constitution for Ethiopia, intended
to officially replace the Fetha Nagast, which had been the supreme law since the Middle
Ages. It was promulgated in "an impressive ceremony" held 16 July 1931 in the presence
of Emperor Haile Selassie, who had long desired to proclaim one for his country. [1] In the
preface to his translation of this constitution into English, William Stern writes, "It is worthy
of note that this was the first instance in history where an absolute ruler had sought
voluntarily to share sovereign power with the subjects of his realm." [2] This statement,
however, is not completely truthful, as the adoption of a constitution was somewhat pressed
by international opinion.[3]
In virtue of this constitution, Ethiopia, one of the last absolute monarchies still existing,
began the process of constitutionalization of imperial institutions, grounding the Emperor's
authority on more solid basis, but also allowing some initial forms of limitation and
participation; this evolutive process would continue after World War II with a new
constitution.

Contents

 1Origins and creation

 2Characteristics
 3Application
 4References
 5External links

Origins and creation[edit]

According to his own autobiography, while still Regent Haile Selassie had wanted
Empress Zawditu to proclaim such a document, but "some of the great nobles, to whose
advantage it was to rule the country without a constitution, had pretended that it would
diminish the dignity and authority of Queen Zawditu if a constitution were set up." [4] Once he
became Emperor, Haile Selassie then appointed a commission to draft the document. The
commission's leading members included the Europeans Gaston Jèze and Johannes
Kolmodin, but most prominently Ethiopian intellectuals such as Tekle Hawariat Tekle
Mariyam and Gedamu Woldegiorgis.[1][5] This constitution was based on the Meiji
Constitution of Japan, a country that educated Ethiopians considered a model for its
successful adoption of Western learning and technology to the framework of a non-Western
culture.[6] Unlike its Japanese model, the Ethiopian Constitution was a simple document of
55 articles arranged in seven chapters.[7] It asserted the Emperor's own status, reserved
imperial succession to the line of Haile Selassie, and declared that "the person of the
Emperor is sacred, his dignity inviolable, and his power indisputable." All power over central
and local government, the legislature, the judiciary, and the military was vested in the
emperor. The constitution was essentially an effort to provide a legal basis for replacing the
traditional provincial rulers with appointees loyal to the emperor. [8] It was not intended to be
a representative democracy, as the Emperor alone had the power to designate senators. [8]
According to Haile Selassie, the importance of this legal innovation was not understood "on
the side of the officials and the people". To educate them on constitutional theory, he called
the leading members of both groups to an assembly where its principal author, Tekle
Hawariat, delivered a lengthy speech which not only described the contents of the
document, but expounded a theory of constitutional law. [9]

Characteristics[edit]
The 1931 Constitution consists of the Decree proclaiming the constitution and seven
chapters divided into 55 articles. The contents of the chapters are:

1. The Ethiopian Empire and the Succession to the Throne. Five articles stating that
Ethiopia is the domain of the Emperor, who shall be a descendant "of his Majesty
Haile Selassie I, descendant of King Sahle Selassie, whose line descends without
interruption from the dynasty of Menelik I, son of King Solomon of Jerusalem and of
the Queen of Ethiopia, known as the Queen of Sheba.
2. The Power and Prerogatives of the Emperor. Twelve articles setting forth the powers
of the Emperor.
3. The Rights Recognized by the Emperor as belonging to the Nation, and the Duties
Incumbent on the Nation. Twelve articles stating that "The Law" will define the
conditions to become a subject of Ethiopia, and the duties of these subjects. This
chapter also sets forth some rights subjects enjoy "except in the cases provided by
law" (Articles 25, 26, 27) and while they "in no way limit the measures which the
Emperor, by virtue of his supreme power, may take in the event of war or of public
misfortunes menacing the interests of the nation" (Article 29).
 4. The Deliberate Chambers of the Empire. Eighteen articles which established a
bicameral parliament for Ethiopia. Until this document, there had never been a
formal legislative body in Ethiopia. The lower chamber would temporarily be chosen
by the Nobility (Mekuanent) and the local chiefs (Shumoch) "until the people are in a
position to elect them themselves" (Article 32), while the upper chamber would be
appointed by the Emperor.
5. The Ministers of the Empire. Two articles on the duties of government ministers, a
system of executive officers which Menelik II had established in 1908.[10]
6. Jurisdiction. Five articles setting forth the judicial system. Article 54 establishes
Special Courts, required by the Klobukowski agreement of 1906, which gave
foreigners extraterritoriality in Ethiopia, exempting them from both Ethiopian law and
her justice system.[11]
7. The Budget of the Imperial Government. One article requiring the Government
Treasury to set an annual budget, which directs how the government will spend its
money.

Application
1955 Constitution of Ethiopia
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Emperor Haile Selassie proclaimed a revised constitution in November 1955 of
the Empire of Ethiopia. This constitution was prompted, like its 1931 predecessor, by a
concern with international opinion. Such opinion was particularly important at a time
when some neighboring African states were rapidly advancing under European colonial
tutelage and Ethiopia was pressing its claims internationally for the incorporation
of Eritrea, where an elected parliament and more modern administration had existed
since 1952.[1]
This constitution was suspended by the Derg in their Proclamation No. 1, which was
broadcast 15 September 1974, three days after Emperor Haile Selassie was deposed. [2]

Overview[edit]
The new constitution consisted of eight chapters and 131 articles. [3] This document was
drawn up by three American advisors—A.H. Garretson, John Spencer, and Edgar
Burlington—who worked with two leading figures of the restored monarchy, Wolde
Giyorgis Wolde Yohannes and Aklilu Habte-Wold. After each session the two Ethiopian
officials would then report to the Crown Council; according to Spencer, "In many
instances, the Crown Council, dominated by the extreme conservative, Ras Kassa,
would veto our proposals and we would then seek some compromise formula. Progress
was extremely slow."[4]
While clearly "not a mirror image" of the U.S. Constitution, Edmond Keller notes it
contained a number of ideas from that document, such as a separation of powers
between three branches of government, and careful attention given to detailing the
"Rights and Duties of the People", to which 28 articles were devoted. [3] Despite this
 element, in his memoirs John Spencer lamented that the Crown Council forced the
constitution's authors to stress the prerogatives of the crown, giving the emperor the
right to rule by emergency decree, to appoint and dismiss ministers without input from
the Ethiopian parliament, and to appoint members of the Senate, judges, and even the
mayors of municipalities. Spencer also regretted that many of the rights were enjoyed
"subject to the law"![5] Bahru Zewde stresses the nature of these executive powers in his
discussion of this document, noting that it was "a legal charter for the consolidation of
absolutism." Bahru quotes the relevant section from Article 4 of the Constitution: "By
virtue of His Imperial Blood, as well as by the anointing which he has received, the
person of the Emperor is sacred, His dignity is inviolable and His power indisputable." [6]
Despite this strengthening of the Emperor's position, the purview of the bicameral
Ethiopian parliament was expanded over the 1931 constitution. Although the Senate
remained appointive, the Chamber of Deputies was elected. In contrast to the
legislature under the 1931 Constitution which could only discuss matters referred to it, it
now had the authority to propose laws and veto laws proposed by the executive. It could
also summon ministers for questioning, and in extraordinary circumstances it could
initiate impeachment proceedings against them. Keller believes its most significant new
power was its budgetary function: parliament now had the responsibility of approving or
rejecting all proposed budgets, including taxes and allocations. [7]
However, in John Turner's opinion, the absence of a census, the near total illiteracy of
the population, and the domination of the countryside by the nobility meant that the
majority of candidates who sought election in 1957 were in effect chosen by the elite.
The Chamber of Deputies was not altogether a rubber stamp, at times discussing bills
and questioning state ministers.[1
The 1987 Constitution of Ethiopia was the third constitution of Ethiopia, and went into
effect on 22 February 1987 after a referendum on 1 February of that year. Its adoption
inaugurated the People's Democratic Republic of Ethiopia (PDRE).

Contents

 1Contents
 2Drafting
 3Referendum
 4References
 5Further reading

Contents[edit]
The document consisted of seventeen chapters and 119 articles. The preamble traced
Ethiopia's origins back to antiquity, proclaimed the historical heroism of its people, praised
the country's substantial natural and human resources, and pledged to continue the
struggle against imperialism, poverty, and hunger. The government's primary concern was
proclaimed to be the country's development through the implementation of the Program for
the National Democratic Revolution, which Kasahun Ankosa had proclaimed in a speech 20
April 1976. In the process, it was assumed that the material and technical bases necessary
for establishing socialism would be created. [1]
The constitution attempted to situate Ethiopia in the context of the worldwide movement of
"progressive states" and made no direct reference to Africa. Critics claim that the
constitution was no more than an abridged version of the 1977 Soviet constitution, with the
exception of the sweeping powers vested in the presidency. A second difference between
the Ethiopian and Soviet constitutions is that the former declared the country to be a unitary
state rather than a federation. It was reported that the problem of nationalities was hotly
debated in the Constitutional Commission, as well as in the WPE Central Committee, but
the regime would not abandon its desire to create a single multiethnic state rather than a
federation.[1]
The 835-member legislature, the National Shengo, was defined as the highest organ of
state power. Its members were elected to five-year terms. Executive power was vested in a
president, elected by the National Shengo for a five-year term, and a cabinet also appointed
by the Shengo. The president was chairman of the Council of State, which acted for the
legislature between sessions.
Actual power, however, rested in the Workers' Party of Ethiopia, defined as the leading
force of state and society. More specifically, actual power rested with Mengistu, who was
not only president of the country but general secretary of the WPE. He and the other
surviving members of the Derg dominated the WPE's Politburo. In essence, the power
structure set up by the constitution was a carbon copy of the power structure in other
communist countries. The party was granted even more power than the government, which
acted more or less as a transmission belt for the party. As was the case with other
Communist legislatures, the National Shengo was nominally vested with great lawmaking
powers, but actually did little more than rubber-stamp decisions already made by the WPE
and its Politburo.
The Constitution guaranteed all manner of civil rights and personal freedoms, such as
freedom of speech, the press, religion, movement, assembly, and association. Citizens also
had the right to a fair trial and a free education. In practice, the government paid almost no
attention to these freedoms. As had been the case during the Derg era, Ethiopia ranked at
or near the bottom of most measures of human rights and civil liberties.

Drafting[edit]
The primary task facing the Workers' Party of Ethiopia (WPE) following its formation in 1984
was to devise the new national constitution that would inaugurate the PDRE. In March
1986, a 343-member Constitutional Commission was formed to draft a new constitution
based on the principles of scientific socialism. Eventually, the 122 full and alternate
members of the WPE Central Committee who had been appointed to its membership
dominated the commission.[1]
The Constitutional Commission had its origins in the Institute for the Study of Ethiopian
Nationalities, which the Provisional Military Administrative Council (better known as
the Derg) had established March 1983 to find solutions to problems resulting from Ethiopia's
vast ethnic diversity. The Institute was staffed mostly by academics from Addis Ababa
University, who continued to serve as advisers to the Constitutional Commission. The
commission's diverse membership included religious leaders, artists, writers, doctors,
academics, athletes, workers, and former nobility. There was also an attempt by those who
chose appointees to the commission to make sure that all major ethnic nationalities had
representation in the body.[1]
For about six months, the commission debated the details of the new constitution. In June
1986, it issued a 120-article draft document. The government printed and distributed 1
million copies to kebeles and peasant associations throughout the country. During the next
two months, the draft was discussed at about 25,000 locations. The regime used this
method of discussion to legitimize the constitution-making process and to test the mood of
the populace. In some cases, people attended constitutional discussion sessions only after
pressure from local WPE cadres, but in other cases attendance was voluntary. Where
popular interest was apparent, it centered on issues such as taxes, the role of religion,
marriage, the organization of elections, and citizenship rights and obligations. By far the
most controversial draft provision was the one that outlawed polygamy, which caused a
furor among Muslims. Few questions were raised about the document's failure to address
the nationalities problem and the right to self-determination. According to government
officials, the citizenry submitted more than 500,000 suggested revisions. In August the
commission reconvened to consider proposed amendments. In all, the commission
accepted ninety-five amendments to the original draft, most of which, however, were
cosmetic.[