EFFECTS OF ECONOMIC GLOBALIZATION

Globalization is not new. Since the start of civilization, people have traded goods
with their neighbors. As cultures advanced, they were able to travel farther afield to
trade their own goods for desirable products found elsewhere. The widespread
transfer of plants, animals, foods, cultures, and ideas became known as the
Columbian Exchange. The resulting spread of slavery demonstrates that
globalization can hurt people just as easily as it can connect people.
Globalization provides businesses with a competitive advantage by allowing them to
source raw materials where they are inexpensive. Globalization affects services too.
Many businesses located in the United States have outsourced their call centers
or information technology services to companies in India. Consumers benefit too. In
general, globalization decreases the cost of manufacturing. Not everything about
globalization is beneficial. Any change has winners and losers, and the people living
in communities that had been dependent on jobs outsourced elsewhere often suffer.
Regardless of the downsides, globalization is here to stay. The result is a smaller,
more connected world.

In this article, it agreed to a definition discussed in class wherein it says that

globalization is the trading of goods and services.

REFERENCE : Effects of Economic Globalization | National Geographic Society

 WHAT GLOBALIZATION REALLY MEANS

A dozen years ago, Peter Drucker predicted what multinational corporations of the

future would look like, saying that they were going “to be held together and controlled
by strategy” rather than defined by who owned them. It is hardly news that the world
is now tightly stitched together. But it is easy to lose sight of just how quickly and
thoroughly globalization is taking place, and just how much it is changing the way
businesses are being managed. “Globalization is not an economic event; it’s a
psychological phenomenon,” he observed. “It means that all of the developed West’s
values—its mindset and expectations and aspirations—are seen as the norm.” This
idea crystalized for Drucker when, in 2001, he was visited by an old student of his—a
native of Taiwan who was then working in Shanghai. “Knowing the cost of your
operations . . . is not enough,” Drucker wrote in Management Challenges for the 21st
Century. “To succeed in the increasingly competitive global market, a company has
to know the costs of its entire economic chain and has to work with other members
of the chain to manage costs and maximize yield.” Andersson is far more Drucker
than Dracula. For the past four years, he has spearheaded an impressive turnaround
at Russian truck maker GAZ Group. But while these moves have depended on a
keen grasp of local politics and culture, Andersson has also kept an eye on the
international scene, with GAZ becoming a contract assembler for GM, Volkswagen,
and Daimler’s Russian subsidiary. Drucker saw this balancing act as a hallmark of
business today— “the need to operate in both a global world economy and a
splintered world polity.” Finally, Andersson insists that all his operations are truly
first-rate, or are at least moving in that direction—another trait that Drucker deemed
essential. “No institution can hope to survive, let alone succeed, unless it measures
up to the standards set by the leaders in its field, anyplace in the world,” Drucker
wrote.

This article gave me a new definition of globalization wherein it states that,

“globalization is not an economic event, it’s a psychological phenomenon.”

REFERENCE : What Globalization Really Means | TIME.com