Developed Country and Globalization

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Organization Culture

May Abd-El-Hady
Contemporary Management
2/17/2012

Globalization

Kofi Annan once said: - Globalization is a fact of life, but I believe that we have underestimated its fragility”. Globalization is a new term that has found a significant place in the lives of the people, what is globalization? How can we feel its effect on our everyday’s life? What are its pros and cons? What’s its effect on companies SWOT analysis? All of this questions will be discussed throughout this few pages.

Everyone experiences the effect of globalization and international transaction every day, as you wake up by an GE alarm which has made in china, then you have coffee using your Black and Decker coffee maker made in the United States, you check your Nokia mobile phone that has been designed in Finland, manufactured at the united states, using parts from Taiwan, and so on, it feels like we are taking a virtual trip around the world every day. By globalization, we mean shedding down the walls of distrust and the barriers of suspicion in between countries, to make a bridge where ideas and beliefs can cross the borders. Though globalization today primarily covers the economical side, the impact is not limited to the economy only. It actually affects every aspect of life, like cultural, social, psychological and of course, political. While globalization is seen as a sign of a hopeful future by some, there are others who believe that it can cause tremendous disaster for the world economy. The major boom at the information technology felid, also the ability to acquire talents with the off shoring solutions, and the drastic reduction at trade barriers by institutions such as The General Agreement on Tariffs and Trade and The World Trade Organization are the major forces driving globalization. One of the main events resulted from globalization, is the huge increase at off shoring business. Off Shoring simply mean locating the business at another place, at old days, it was used at manufacturing companies mainly for Blue Collar, where they relocated their business to lower cost countries. However nowadays it’s widely used thanks to the technology for White Collar too. This means that off shoring now does not entirely means moving business elsewhere, it means sourcing talents everywhere. After few year there will be also no barriers, or walls that forbids companies to sources talents everywhere in the world, not only to benefit from the low cost, but also to avoid the shortage for talented employees such as engineers, IT guys etc. so companies now should be able to manage talents globally. Some critics argue that off shoring is a bad idea, as it decreases job opportunities at some places, however when this solution was introduced in France the percentage of people who lost their jobs remained the same, as this solution was used when they tried to expand their business, not to lay off employees.

Globalization argument has been widely discussed in many different occasions, but everyone sees it form different side, “Globalization, as defined by rich people like us, is a very nice thing... you are talking about the Internet, you are talking about cell phones, you are talking about computers. This doesn't affect two-thirds of the people of the world.” Jimmy Carter Said. Globalization means different things to different people, a business man might see it as an opportunity, an economist may see it an opportunity to study its effect on jobs and standards of living, an anthropologist may want to examine the influence of globalization on the culture of a group of people, a political scientist may be concerned with the impact of globalization on the power of government relative to that multinational companies, and finally an employee might see it as an opportunity for new work or a threat to his/her current job. That’s why the globalization debate is very complex. As everyone see it from different perspective. The main items in...
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