Examine the Concept of Globalisation and What Impact It’s Having on Lesser Developed Nations.

Topics: Developing country, United Nations, Developed country Pages: 7 (2792 words) Published: March 31, 2011
As organisations wish to move out of their domestic market and compete on the international stage they are faced with very differing business arenas. Different nations can vary greatly in relation to consumer behaviour, language, law, infrastructure, education and distribution structures. For companies to be successful, the way in which they deal with the tensions abroad is vital. (de Wit and Meyer, 2010). As these businesses compete on the world stage there can be some effects concerning peoples health, education and you can easily notice the inequal distribution of wealth, education and expectations of life throughout the world. Within this assignment I’m going to examine the theory surrounding globalisation and also its impact on local/national economies in lesser developed nations i.e. The third world. Definition of Globalisation

Gunter and Hoeven (2004) suggest that globalisation is the integration of economies and societies causing increasing homogenisation of the world population and the markets. The main drivers of globalisation have been the introduction of new technologies allowing for increased communication, transport, travel, new economic relationships and the actions of governments and international organisations. Others propose globalization as being the efforts of the International Monetary Fund (IMF), the World Bank and others to create a global free market for goods and services largely as a result of deregulation and improved communications (http://www.infed.org)

Concepts of Globalisation
Jeffrey Hart suggests that globalisation has five key concepts which it could not operate without. He lists these concepts as follows: •The existence of a global infrastructure as in the existence of a worldwide connection of communication networks that make information available to users e.g. computers, satellites. •The harmonisation of some important characteristic feature such as the alignment of systems of pay and benefits. •That countries are borderless i.e. one can be protected by the laws of a certain territory even though they do not share the land territory •That global diffusion of some initially localized phenomenon may occur where products that used to be produced locally e.g. T shirts and are now being produced elsewhere on the globe at a relatively lower cost and transported to another area for sale. •That there will be geographical dispersion of core competences in some highly desirable activities i.e. The physical dispersion of the Internet within a country, how many access points they have, how many internet providers etc. (http://www2.hawaii.edu)

Dimensions of Globalisation
Within the process of globalisation there are three dimensions and these offer very differing views. •The Worldwide scope- this states that globalisation is the process of international expansion on a worldwide scale. •The Worldwide similarity- here globalisation refers to the homogeneity around the world. •The Worldwide integration- in this dimension globalisation refers to the world as one tightly linked system. It is seen as the process of increasing international interconnectedness. E.g. events in one country are impacted by the events others (de Wit and Meyer, 2010). Changes in any of these dimensions will have a knock on affect among the other dimensions. (http://www2.hawaii.edu)

Effects on lesser developed countries
Globalisation, the process through which economies worldwide have become integrated through a global network of transport, communication and trade has had a massive impact on lesser developed countries around the world. Advantages

Increases free trade between nations which means that Corporations have greater flexibility to operate across borders. The movement of goods between international boundaries is made simpler and the ease and speed of the transportations of the goods to people is increased. Also Due to the market becoming worldwide, companies in various industries...
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