Globalization Impact Research Paper

Pages: 6 (1894 words)  ·  Bibliography Sources: 4  ·  File: .docx  ·  Level: College Junior  ·  Topic: Business - Management

Globalization Impact

During the past few years, the world has contracted to a size of a small village. The world has become a global village. There are no barriers between nations, the boundaries parting countries are eliminating day by day, and much of this change is due to a simple term called 'Globalization'. The argument of what exactly does this term means varies from people to people. Globalization is:

the ways in which, more people become more connected across larger distances, they create a new world society in which they do more similar things, affect each other's life more deeply, follow more of the same norms, and grow more aware of what they say (Lechner 11)

The forces that are responsible for globalization are various. However, the advanced use of technology, the widespread of local economy, the efficient and advanced communication and improved infrastructure are some of the main forces that are responsible for globalization.

American Nation can be righteously called the founders of Globalization. This is the nation which is the driver of globalization on it. As a matter of fact, globalization was once referred as "Americanization" due to the flexibility and the adaptability of this country. However, in changing times, the crises, economic disturbances, population, terrorism, inflation and many other issues had deprived USA from this title. The term globalization is now shifted to the Asian regions and is now referred as "Global-as-Asian" (Tay 1-2).

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The impact on globalization on the economy of U.S. is one of the most widely discussed topics. The reason for its fame has definitely got to do with the impact of U.S. economy have on the world.

Research Paper on Globalization Impact During the Past Few Years, Assignment

Globalization has enabled the American product to penetrate in both the local and foreign markets, which helps in improving their economy. Many American firms are now operating globally and are running their business successfully. Though this is considered to be a positive point, the negative side of this advantage is that due to the penetration of products in different markets, the small developing nations like China has started to take over the U.S. markets,. The cost of production to the labor cost is very cheap in China as compared to U.S.. As a consequence, the cost of the Chinese products is quite cheaper to the products made in U.S.. This has resulted in the inclination of the Americans to be more inclined towards other products rather than products made in U.S., thus damaging the economy of the country.

One drawback of globalization that U.S. have significantly faced is definitely the issue of terrorism. This issue has not only affected the economy and political stability of U.S. As a whole, but this issue also had a negative impact on the individual residents living in U.S.. The dissolution of boundaries which have in one side brought cooperation and integration of culture among nations has also introduced the menace of terrorism. America has been the unfortunate country to be most affected by it.

The increase in population is resulting in the excessive use of the natural resources present in U.S.. This excessive use of sources is leading to a serious shortage of sources in the near future.

The most important characteristic of globalization is international trade or free trade. This increased trade has suppressed the environment. The environment is bearing the negative impacts due to globalization as it is resulting in more pollution and the excessive use of natural resources. Unfortunately, America is not lagging behind in sacrificing the environmental health in order to save the economy. The result is obvious. Climate changes, extreme weather condition, acid rain, floods are some of the drawbacks that are associated with the environmental damage due to globalization.

One other noteworthy issue that U.S. are currently facing is the immigration of people from around the world to U.S.. People are interested to move to U.S. As they think the country has a lot to offer as compared to their own home country. The result of this migration the issue is inflation is on its rise. The increased demands of goods have inclined the companies to increase the price of their products. Similarly, the excessive crowd is also resulting in environmental issues. There is lack of jobs at the local level. The residents of U.S. are suffering most as they are deprived of small jobs due to immigrants working on a lower wage then them.

The mix of different cultures is bringing diversity in the U.S. But the diversity is also resulting in the increase in crimes.

Globalization has two implications. When it comes to its impact on the economy of a nation, one side is positive while the other is negative. The positive side is the free flow of trade and products from one country to another, which adds value to the economy and broadens the market. On the other hand, the negative aside is the failure of an organization to retain its loyal workforce, the continuous changing demands of customers, the abrupt technological changes and many more.

One of the most obvious results of globalization in terms of economy is the widespread use of computerization instead of people. This computerization has in turn promoted the adoption of new technologies, which brings other challenges with them.

When it comes to the impact of globalization, one factor that has played an important part is the technology. It is technology that helps the people to differentiate between developed and under developed countries. When it comes to globalization, the technological advancement and their impact on U.S. is dramatic. There was an era when U.S. was ahead in the field of technology, making new inventions, having competitive edge over its competitors and being the leader in the international economy. Now due to globalization, America is no more a leader in technology. The technological advancement is no longer associated with U.S.. As a matter of fact, America is quite behind when it comes to technology. Taking an example of the energy issues faced by the world, U.S. is very much lagging behind the other nations. China and Europe are far more ahead in this particular field, while U.S. is not doing any noteworthy work in order to prepare for this serious issue. The declining technology of U.S. has much of its roots in the low labor cost and large pool of skilled workers that are present in other developing countries.

In the context of technology, America doesn't have a bright future. It was a nation that was the first that had adopted a global standard, but unfortunately, it is failing to keep up with the pace the world is moving nowadays.

One term that has become very common due to globalization is off shoring and outsourcing. Many organizations in U.S. are opting for offshoring in Asian countries due to the low labor and production cost. Though a company can earn a lot of profit if working in an economy whose currency is lower than their home country, but the risk associated with this cannot be ignored. As Willocks righteously said "Another aspect to consider while deciding which processes can be off shored or outsourced is related to the two major types of risk that companies face: operational risk, which refers to the dangers that the processes will not function properly and smoothly after out shoring, and structural risk, which refers to the danger that the relationship between clients and suppliers may not work as expected" (Oshri, Kotlarsky, and Willcocks 56).

Many organizations in U.S. are operating in other regions like Asia due to lower costs, but things don't work out well all the time. The risk involved in operating in other countries often results in closure of the company due to the political instability associated with that particular country. The result of this is unemployment. Similarly, out shoring also result in great stress at both the management level as well as employee level. The cultural differences of other countries and the security risk involved, often results in premature return of the employee that costs a lot of money. This practice has a very negative impact.

International Management practice is an outcome of globalization. As globalization has affected every field of study, the field of management has been equally affected by this major force. International Management is defined as "the process of applying management concepts and techniques in a multinational environment and adopting management practices to different economic, political and cultural environment" (Hodgetts 6). At this point, it must be mentioned that the concept of international management practice is the outcome of globalization. It is globalization which has introduced international management by elimination the distance between organization and their management practices. Employers and employees both face the affects of globalization while the management serves as a bridge that seek ways to eliminate the negative changes that may occur as a result of globalization. One common issue face by the management is definitely handling the diverse workforce. Employees are more powerful than ever before. Now they are not handled, they… [END OF PREVIEW] . . . READ MORE

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APA Style

Globalization Impact.  (2012, October 14).  Retrieved February 28, 2021, from https://www.essaytown.com/subjects/paper/globalization-impact-during-past-few/8548442

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"Globalization Impact."  14 October 2012.  Web.  28 February 2021. <https://www.essaytown.com/subjects/paper/globalization-impact-during-past-few/8548442>.

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"Globalization Impact."  Essaytown.com.  October 14, 2012.  Accessed February 28, 2021.
https://www.essaytown.com/subjects/paper/globalization-impact-during-past-few/8548442.