PRO-GLOBALISTS VERSUS ANTI-GLOBALISTS
Government across the world acknowledged the fact that they need to have a capitalistic perspective if they want there country to prosper. As a result, countries (especially in Asia and Africa) started to allow foreign companies to venture into there motherland. But still countries were cautious in there approach. The proof of this can be seen from the fact that most of the governments had some kind of regulation that forced the companies to either.
1) Making a strategic alliance with an already existing native organisation. As a result of this, companies started to expand there businesses and venture into new un-chartered markets. Companies who did there homework in terms of getting the customer requirement and projecting there products closely intertwined in the local culture made a fortune in these markets. Sooner than others, they captured the market and were able to reap the benefit of market leader position. OR
2) To open a local subsidiary which would be registered in there country as an independent business entity.
1) Pro-globalists argue that globalisation will create new employment opportunities in various parts of the world. For each office being setup, companies will be requiring hundreds of people to work in them at different levels. Setting of offices in these countries will also mean that foreign exchange will be flowing into the there economy to cater to expenses owed by the office in terms of construction cost, wages and other tasks. A higher inflow of foreign exchange will boost the economy as a whole and will raise the living standard of the individuals there. A higher standard of living means better living conditions, better health and civic amenities which implies a healthy nation. Promoters of Globalisation also argue that globalisation will bring in better education. MNCs will require skilled and more professional people to work for them thereby creating a demand for such professionals. In order to fulfill this demand, people would be trained both at school and college level so that they can be absorbed by the companies. Thus in long run, globalisation will cause the education system to become more jobs oriented and adhering to demands of jobs in international market.
2) Another widely promoted reason of globalisation is that it has made the entire world borderless. Inventions happening in one country can be used in manufacturing goods in another country faster than ever before. Today, companies are launching there newer models across the world at the same time. Except for the lag due to time zone, there is hardly any human initiated delay in launches. With the advent of internet, you can order products being manufactured in different countries without stepping out of your bed. This is a remarkable progress we have made due to globalisation. Companies are now working on global delivery model. They have offices and warehouses at different geographic places which they have considered strategically. The idea is to reduce the time spent since the order being recorded till the time product being delivered. It is a case in history when a technological development in Europe or USA used to take decades before they would reach Asia or South America or Africa. Now, as soon as Nokia unveils its new phone at its HQ, the model is available in Asia/Africa for sales. In other words, the technology divide has been filled due to globalisation and the lag has been reduced tremendously.
3) For a very large corporation, globalisation helps the company to remove the bureaucracy and flap that it has acquired over the years. In the present day world, a company needs to be flexible and should have zero quotient of snobbishness. It has to be agile and impulsive to survive. Expanding company operations in a new market helps company to trim down the extra fat it has gained and re-instates the blood vessels in it. At the same time, it...
Please join StudyMode to read the full document