International Business Perspective
Week 1 Exercise Paper
Globalization Globalization is a very powerful entity which, there are many advantages that we can come to understand and appreciate, however there are so many other disadvantages also that we need to consider or be aware of and ask ourselves if the benefits outweigh the costs or risks of doing business around the world. Additionally, globalization is an entity that we cannot live without and it will always be part of our lives which will eventually become part of the way we do business in the global market.
Moreover, globalization has helped us very greatly to communicate with the outside world, to learn more from different ethnic and racial background and most importantly, globalization has become a very dominant and powerful branch of the international trade, a place where we can exchange our world views freely, products, ideas and other aspects of culture in the world. Furthermore, many people around the world are more connected with each other more than we ever imagined. Additionally, the use of information and money are flowing more rapidly throughout many countries around the world where we can exchange currency, trade freely in some part of the world or even develop a niche in the import or export market which, there are a lot of potentials and avenues to build a very lucrative or a stable business venture around the globe.
Although, globalization has its ups and down, I agree so wholeheartedly with the proponents of globalization about free trade and according to Collins, free trade has enabled a network of businesses which will stimulate, encourage or support global financial growth and development in other countries to create jobs that will force other business to become more competitive and innovative while, we as consumers can enjoy the benefits of lower prices for goods or services that are been imported into our country. Furthermore, free trade has a direct impact on the economy of foreign countries by providing more money and resources for the countries to develop economically through technology to improve their working conditions, reduce waste or pollution and restrict child labor through progressive negotiations and fair politics of the foreign governments.
Beside the rapid emergence of free trade, the other issue about the detractors of globalization that I agree with the most is the idea of big companies outsourcing their businesses to other countries abroad in order to cut costs and make profit which can be a good thing for the companies but on the other side of things, it can also create a very devastating unemployment rate for potential workers in the United States. According to Collins, many manufacturing and white-collar jobs in the United States have been outsourced to other countries abroad and many U.S manufacturing industries have lost more than six million jobs since the 1980’s which, the gross domestic product was as high as 29% to as low as 11% of GDP in the 1950’s. Furthermore, in the service industries, certain prospective jobs such as programming, accounting and medical technicians have lost their jobs to countries such as India. Subsequently, outsourcing has also created a feeling of job insecurities and before the emergence of globalization, most people have great feelings about job security and keeping a very stable job for the most part, but for now people are losing their jobs to an aggressive form of global competition and very shrewd methods of outsourcing in our own country.
Fortunately, globalization without a doubt has a direct impact on our global economy and I always believe in the idea that, if we as human beings do not come together as people of a nation collectively together to be part of the solution, then we will all be part of the problem which, globalization alone cannot solve all of the ills of countless problems around the world despite all of the criticisms of globalization which, the