Globalisation has already existed for thousands of years. People have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages. Likewise, for centuries, people and corporations have invested in enterprises in other countries.
So what is globalisation?
Globalisation is a process of interaction and integration among the people, company, and governments of different nations, a process driven by international trade and investment and aided by information technology. Globalisation usually refers to the rapid increase in the share of economic activity taking place national boundaries.
Globalisation goes beyond the international trade in goods now and it also includes the way those goods are produced, the delivery and sale of services, and the movement of capital and so on. The challenges for business, for individuals and for governments are to realize the opportunities from globalization – in stronger economic growth, new business prospects, and higher living standards.
The current globalisation is driven by policies and technology that have opened economies domestically and internationally. Now, many governments have adopted free-market economic systems to increase their productive potential and get new opportunities for international trade and investment. For the corporations, taking advantage of new opportunities in foreign markets, they will get much more profit. The case of Boeing 777 in course of Internationalisation of Business mentions 132,500 component parts of Boeing 777 are outsourcing from lots from different countries and combining in the United States.
Furthermore, ‘Globalisation benefits all who participate in globalisation process.’ This conclusion will make those who are opponents of globalisation feel unhappy. I will state my opinion about this.
Globalisation and its impact
Globalisation has set in motion a process of far-reaching change that is affecting everyone. New technology, supported by more open policies, has created a world more interconnected than ever before. This spans not only growing interdependence in economic relations – trade, investment, finance and the organisation of production globally – but also social and political interaction among organisations and individuals across the world.
The potential for good is immense. The growing interconnectivity among people across the world is nurturing the realization that we are all part of a global community. The global market economy has demonstrated great productive capacity. Wisely managed, it can deliver unprecedented material progress, generate more productive and better jobs for all, and contribute significantly to reducing world poverty.
However, we also see the current process of globalisation is generating unbalanced outcomes, both between and within countries. Wealth is being created, but there are also few countries and people are not sharing in its benefits. From the other hand, globalisation still affects some areas in those countries or people’s daily life more or less.
Threat or Opportunity
Globalisation has the potential to generate wealth and improve living standards. For those countries with the products, skills and resources to take advantage of the opportunities provided by global markets, the benefits are evident. However there are also significant drawbacks particularly for those nations that don’t fall into this category. Globalisation sometime will be defined as increasing the gap between rich and poor. This is because globalisation usually focuses on the needs of business. Everything has its positive and negative aspects. For example, Vietnamese are significantly influenced by globalisation, which provide individual and government for more employment, stable income, living standard rising, GDP increasing and export etc. However, the negative aspect can be quoted by...