Reflections on Globalization and its impact
On International Business
The term globalization did not become popular until the 20th century. Then onwards, it has become a typical issue understood to affect the whole socio-economic and political life of states throughout the world. Besides, the discourse on globalization is complex with far-reaching effects on national and international laws and policies pertaining to the social, economic and political matters. It is commonsense knowledge that issues related to globalization are open to debates, as various people have varying perceptions about it. At one extreme, we have those who see globalization as an irresistible and benign force for delivering economic prosperity in economically underdeveloped areas. On other extreme, we have those who blame it as a source of all contemporary ills. Those people taking the latter line of argument emphasis on the negative impacts of globalization from various dimensions. Specially, they make frequent reference to the difficulties faced by small enterprises in underdeveloped areas in taking advantage of the benefits of globalization. As the result, the rural and informal economies remain on the margin, which in turn leads to persistent poverty. Besides, the industrial restructuring in force of competitive markets is highly probable to insecure jobs and dramatically affects the working conditions and rights of workers in some countries. In most developing countries, globalization has undermined traditional livelihoods, changed the traditional social security systems and increased rural-urban and intra-regional inequalities. Moreover, some multi-national investment have been exacerbating environmental degradation and generated pressures for cheaper and more flexible labor in order to retain competitiveness which in effect could erode the values of democracy and social justice. In relation to this, the accountability of these institutions engaged in business is debatable. In reality, some people feel that transnational bodies are unaccountable which usually disregard the local perspectives of cultural, linguistic, and other diversities.
The other extreme argument is on the positive impact of globalization. To this effect, it is widely accepted that the key characteristics of globalization have been the liberalization of international trade, the expansion of FDI, and the emergence of massive cross-border financial flows. This resulted in increased competition in global markets. It is also widely acknowledged that this has become about through the combined effect of different understanding factors mainly policy...