Globalization
Effects of Globalization
Abstract
We are seeing a tremendous growth in companies worldwide that are becoming more global in recent years. This brings on many positive growth possibilities as well as challenges that affect all countries involved. As economic conditions change in different countries, so does the allocation of economic power worldwide. Globalization is in full swing and there seems to be no sign of exhausting its trend anywhere.
Effects of Globalization on the World
Today’s world has become increasingly interconnected due to various reasons whether it’s linked to our high usage of the continuously advancing digital technologies around us to the numerous companies expanding overseas for more business revenues. Thanks to globalization, regions all over the globe are benefiting, to various degrees, as well as facing new and growing concerns economically. According to Luthans and Doh (2012), globalization is “the process of social, political, economic, cultural, and technological integration among countries around the world…. it is the vision of creating one world unit, a single market entity” (p.6). Globalization could be thought of by many as a recent effect from our modern experience of international trends. However, it materialized from transcontinental trades over centuries. For example, the beginning of Asia’s globalization began with the development of the Silk Road in ancient China. In 1421, China began initiating trade with a massive voyage ordered by the emperor which began the introduction of uniform measurements that aided in foreign transactions. Similarly, the Chinese used the coinage system like the Egyptians and Romans that also helped in taking a huge step towards globalizing with the elimination of complex exchanging systems created by local markets (Luthans & Doh, 2012).
Major Drivers of Globalization From any company standpoint, many factors can play a significant role in what makes
Abstract
We are seeing a tremendous growth in companies worldwide that are becoming more global in recent years. This brings on many positive growth possibilities as well as challenges that affect all countries involved. As economic conditions change in different countries, so does the allocation of economic power worldwide. Globalization is in full swing and there seems to be no sign of exhausting its trend anywhere.
Effects of Globalization on the World
Today’s world has become increasingly interconnected due to various reasons whether it’s linked to our high usage of the continuously advancing digital technologies around us to the numerous companies expanding overseas for more business revenues. Thanks to globalization, regions all over the globe are benefiting, to various degrees, as well as facing new and growing concerns economically. According to Luthans and Doh (2012), globalization is “the process of social, political, economic, cultural, and technological integration among countries around the world…. it is the vision of creating one world unit, a single market entity” (p.6). Globalization could be thought of by many as a recent effect from our modern experience of international trends. However, it materialized from transcontinental trades over centuries. For example, the beginning of Asia’s globalization began with the development of the Silk Road in ancient China. In 1421, China began initiating trade with a massive voyage ordered by the emperor which began the introduction of uniform measurements that aided in foreign transactions. Similarly, the Chinese used the coinage system like the Egyptians and Romans that also helped in taking a huge step towards globalizing with the elimination of complex exchanging systems created by local markets (Luthans & Doh, 2012).
Major Drivers of Globalization From any company standpoint, many factors can play a significant role in what makes
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