Globalization means the worldwide movement toward economic, financial, trade, communications and ideas in one global marketplace. It refers to economic globalization. Under globalization, people around the world are more connected to each other than before and information and money flow more quickly than former. Globalization does not only affect the international trade, but also affect the cultural exchange.
Nowadays, international business and globalization seem to be a trend. The advantages and disadvantages of globalization have been heavily debated in recent years .Some may claim that the globalization causes the job loses, low wages and exploited workers. On the other hand, others may argue that the people’s living standards overseas will increase. The benefits seem dominate over the drawbacks. So, we support globalization.
Song Corporation is the one of the successful example of globalization.
They have very high cost of manufacturing television in Japan as the labour cost and materiel cost are costly. However, the cost is very low in China. Then they determine to move their production lines to China. Sony can earn more profit and creat more job in China.
Problems caused by globalization
There are quite a lot of disadvantages we can find. The followings show the most serious ones and those bring huge affections.
Initially, as corporations seek for cheap labors, they may employ both skilled and unskilled labors from undeveloped or developing countries to developed countries. This may lead to an unbalanced distribution of skilful labor and experts over the world. Shortage of professionals may then happen in the developing countries like Brazil since foreign companies are willing to pay higher than the domestic firms and pull the high-skilled labor from developing to developed countries.
Apart from uneven distribution of workers, globalization brings serious polluting problems which harm our living environment