Category: Globalization

Introduction

Globalization began in the olden or ancient times as people migrated from Africa to other parts of the world in search of a better life. During those days, people moved freely with limited boundaries thus promoting trade among communities. The trading communities carried different trading items, such as precious stones, spices, foodstuffs and other commodities as they proceeded to carry out their commercial activities. This encounter promoted cultural influences from one trading community to another. Among the many agents who contributed to early globalization were explorer, missionaries, soldiers and most importantly, the merchants.

In the olden times, clothes made of silk attracted nearly all women in the Roman Empire. However, to access the precious clothing material, the empire had to import from China. This, therefore, led to the emergence of Silk Road  a trade route where Romans traded silk and other items with Chinese as well as other foreigners; this trade route spread to other parts of the world like Venice, Mesopotamia and even North Africa. However, the trade was not free, since the Roman government had imposed taxes and custom duties on the items that were imported. This process, however, was not without a few controversies; the then leaders feared that the silk clothes were wearing down the cultural values of the time. They argued that the clothes were transparent and thus there was no difference between them and a naked individual. The imported silk, however, hit other competing textile manufacturers economically with their markets reducing dramatically. In a significant capacity, this whole process signified globalization. (Goldstein 2007, p.3).

Body

Globalization is a common term, widely used by various individuals in dissimilar capacities thus leading to varied definitions of the term. Considering one of the many definitions, globalization is whereby world economies achieve a unified stance by eliminating international trade hindrances such as trade tariff, import duty and exporting fees (Bodreaux 2008, p.37). On the other hand, scholars such as McGrew and Held described the process as the spreading out of a system of capitalism around the world (Held & McGrew 2002, p.67). In addition to Mc Grew and Helds ideologies, other economic scholars also defined globalization as free trade among countries, which incorporates elimination of tariffs and other obstacles to the liberated flow of labor, goods capital and services.

Due to globalization, countries develop economically, socially, technologically and culturally due to the existing nature of interdependence (Beck 2000, p.11). Since the human population is increasing significantly and that no country can suffice itself solely, international trade sets in as the appropriate solution to such situations. Therefore, from the above arguments, it is clear globalization is a sure depiction of the current world trade. This is evident by how globalization has brought the human race closer to varied goods and services, information, and culture exchange. Many parts of the world, for example, have had a better share of innovations and inventions that have made globalization process fast and thus promoting tremendous trade integration. Technological innovations have conquered or dominated todays world particularly in developed nations or countries. These nations promote their newly developed products globally thus promoting global economic integration.

Factors promoting globalization

Several factors encourage globalization process, among them being transportation. For instance, during the exploration or ancient age, people invented the sea vessels to travel and look for new lands for colonization. Explorers such as Christopher Columbus used these vessels to search for countries with useful items such as gold in order to enrich their mother states. Eventually, this process ended up with strong European countries invading or colonizing other weaker countries that had valuable natural resources.

In the current world, numerous transportation networks have aided in the quick delivery or shipment of commodities and services various parts of the world. This has not only reduced cost but also saved time. Most countries, for instance, have international airports that ferry individuals to nearly all corners of the world daily. Additionally, current sea vessels are considerably large thus able to ferry bulky commodities in facilitation of international trade. Such worldwide transportation capacity has boosted international trade in an incredible capacity (Tiffin & Kissling 2007, p.7)

In addition to transportation, another major factor that has greatly contributed to globalization is technology. Technological advancements began after the Second World War whereby information and communication development improved significantly. However, in the recent times, telephone cables that transmitted analogue signals were replaced by integrated switches, which transmits massive volumes of information in digital form, cheaply and incredibly fast. The internet, conversely, has become a vital platform upon for traders to communicate efficiently from all corners of the globe. This is possible by the introduction of social network sites such as Facebook and Twitter, which promotes easy and fast global communication thus promoting trading activities.

In addition, Tele-conferencing has also helped many entrepreneurs share business ideas without having to hold meetings physically. These days online shopping has become rampant in many countries due to enhanced communication capacities. The media has also become a great tool in advertisements; a person only needs to watch television and read newspapers to know the availability of most goods. The media also informs people of the events happening around the world at the comfort of their homes (Eriksen 2007, p.40). Current examples of media communication include BBC and CNN, which their broadcasters situated in almost all worldwide countries.

Also, due to the advancement in technology, high quality goods are being produced in large volumes very fast. Japan, for example, the Toyota Company produces millions of vehicle faster and efficiently due to the inventions of robots and artificial intelligence. These vehicles find their market in every continental territory. The Nokia Company on the other hand, has invested in many countries and it has been one of the leaders in mobile phone production and sale across the globe.

Banks and other financial institutions have greatly helped both local and international trade; cash transactions are fast, safe and efficient. With the electronic funds transfers agents such as the Western Union and Money-gram, people are able to work abroad and still assist their families financially. Moreover, through worldwide economic entities such as the World Bank, countries are able to access loans and grants and hence steer their economic development. Qualified individuals can also acquire loans from their mother countries and invest in foreign countries as well.

Political revolutions have also been on the forefront in accelerating the globalization process. For instance, the former communist USSR collapsed and then formed independent countries that copied the West in their system of politics and economic aspects. This incorporated them to the global community. The introduction of regional and inter-state governing bodies has also geared globalization process in an extensive capacity (Martell 2010, p.216). Some of such bodies include the EU and the UN, which tend to bring member countries to a common political ground.

Democratic governments arose after the end of the cold war. As countries embraced democracy, they set up policies that promoted free trade. This was seen as a big leap in economic development because countries could acquire good and services that they did not have as well as trade excess products. Japan, for example, gave Kenya agricultural machinery in return of farm produce.

Since the inception of the capitalist system of economy in many states, people now privately own companies and thus work towards maximizing their profits. Their quest for profit maximization has therefore forced them to seek for markets abroad, which in turn enhances globalization.

Cheap labor has eased the progress of globalization. As great economies venture into developing countries, they enjoy low cost labor as compared to the ones provided by the natives. This acts as a motivation to their business endeavors and as a result, they maximize profits. Also due to the availability of resources, the raw materials are mostly cheap, whereas, the production output is usually high.

Market of goods and services is always available in foreign countries as opposed to mother countries. This occurs because countries are able to produce more than their country can consume, therefore, such surplus are often sold to foreign countries. As mentioned earlier, they also acquire what they produce in low quantities or do not produce at all. Additionally, due to the limitation of the local market, many companies see the need of the expanding their business outside their borders and thus take full advantage of their companies profitability. Moreover, stiff competition from local rivals has also made several companies look for greener pastures in foreign countries where there is massive likelihood of market growth (Ali 2000, p.197).

Furthermore, there has been an influx of experts and intelligent local personnel. This has been brought about by the fact that more institutions of higher learning are being created and education opportunities are accessible to more people than before. As a result, job opportunities for the trained experts are limited and competitive. Consequently, these experts cross the borders of their nations to look for jobs or better pastures.

Globalization has not been without a fare share of negative factors that have hindered it. One of them is heavy import duty enforced by some governments. Countries that are opposed to globalization impose heavy tariffs on imported goods as a way of discouraging globalization. A good example is the Chinese government that has enforced a 200% tariff on imported vehicles in order to promote market for their locally manufactured vehicles.

To add to that, before a country ventures into a foreign country, it has to clear with so many legal documents that are costly and time-consuming thus discouraging globalization. Heavy taxes are also imposed on foreign investors as opposed to the local investors. Some foreign entrepreneurs also do not know where to get cheap labor and raw materials to aid in their production (Stegers 2009, p. 22). The host government fails to assist foreigners in a bid to promote local traders. This leads to investors incurring huge losses and thus discouraging them to invest further.

Moreover, political instability in nations may hinder globalization. Some countries, especially in Africa and the Middle East, have had civil wars for many years now. This has been brought about by tyrannical kind of governance and incumbent corruption. As a result, globalization process has been dented, as entrepreneurs are unwilling to invest in such countries. To curb this, international organizations such as the United Nations need to intervene and stop these political upheavals.

Culture has also significantly slowed the progress of globalization. Moreover, some countries have openly campaigned against globalization, since they think that globalization will wear down their valuable cultural values. In addition, globalization is viewed by some countries as a western thing imposed to their country. If the globalization process is to continue, these impediments must be done away with forthwith. Some cultures see the western dressing, music and videos as being unethical.

Some even view technology as a threat that could scrape off their conserved cultural values and cannot embrace it. Another hindrance to globalization is the existing language barrier. Different nations have different national languages and thus effective communication is affected. This lowers productivity, as instruction giving is low. It may also lead to additional costs because there will arise the need for an interpreter.

There have been countless debates as to whether globalization is beneficial to people or detrimental. In spite of whatever conclusions, globalization is here to stay. Among the many positive effects of globalization are the excessively created job opportunities. Developing countries have limited access to capital, which encumbers development of local companies resulting to unemployment. Fortunately, as many companies from developed nations delocalize their coverage, foreigners benefit from the created employment opportunities. This in turn improves the living standards of the local populace.

Conversely, globalization has massively promoted the growth of healthy competition within commercial markets. Numerous companies offering similar products are being set up in most countries by foreign investors. This has made local companies to improve the quality of their products in order to compete with foreigners. Consequently, organization promotes the manufacture of quality commodities, which proves satisfactory to consumers (Bella 2010, p.24). Current example of such instances is the mobile phone firms Nokia and Samsung that compete in making state-of-the-art mobile phones, in order to, utterly, satisfy their customers.

Globalization has also encouraged specialization in various perspectives. Countries now embark on producing goods and services that they can best produce at the most limited possible time. Additionally, outsourcing has helped in the production of high quality goods. Privatization of many companies has greatly rescued many companies that were on the brink of collapsing. Investors have injected a lot of capital on these companies and thus improving their productivity and profitability. This has helped in creating employment for locals thus improving their living standards.

In an extensive capacity, globalization has extensively eased the access to information and cheap communication across the entire sphere. With the advancement of technology that has seen the introduction of mobile phones and the internet, people can share information when they are thousands of miles apart. This goes a long way in improving international understanding among nations.

As many foreign investors put up companies in a country, the flow of foreign capital increases (Weinstein 2007, p.39). This in turn increases revenue in a country. The country may use the gained capital to develop local companies and import up-to-date technology necessary for production thus promoting economic development. The investors to benefit from the huge profits gained.

Globalization has also promoted innovations, inventions and increased technical expertise (Hogan 2005, p.148). Major inventions are assumed to be only from the developed countries. However, with the investors venturing all over the globe, technological experts have now settled in developing countries. This, therefore, gives the local citizens the chance to make new inventions that improve their productivity.

As countries interact through trade, countries experience improved political ties. Such ties promote a common understanding that promotes the formation of worldwide organizations such as the United Nations, The World Trade Organization and the International Criminal Court, to help curb certain global issues. Such bodies have helped curb worldwide problems such as crimes against humanity with perpetrators prosecuted outside their country borders. There has also been an emergence of superpower countries such as the USA, which helps countries faced with political upheavals. This, in turn, has promoted justice and tranquil among nations thereby providing suitable ground for business to thrive thus raising economies globally. Countries have organized international conferences and passed decisions that are beneficial to people across the globe.

Through globalization, different world cultures have intermingled, thus making people learn and appreciate diverse ethnic groups. Consequently, this promotes love and trust among global communities. However, before globalization, people viewed foreigners as aliens, in the native lands, although, after cultural interactions, this has changed tremendously. Moreover, cultural habits like modes of dressing, foods, and even language are being imported to different communities. Consequently, market for such goods as crockery, clothing and agricultural products has expanded internationally (Ervin & Smith 2008, p.32).

Nevertheless, globalization has also come with numerous demerits, among the major ones being unemployment. With the invention of new and efficient machines in the global market today, most countries experience downsizing economic trend; former larger workforces are reduced to a much smaller number. As a result, slums have emerged especially in developing countries with people live in incredibly poor conditions. In addition, crime cases have shot up thus promoting security issues in a global capacity. Besides, as developed nations outsource jobs from developing nations that may be cheaper, the natives are rendered jobless. Competition has also increased as employers seek for the best-qualified personnel for their job. This means that an employee is never sure of retaining his/her job.

Moreover, with the advancement of technology, terrorists are able to use refined weaponry to torment their victims. Terrorists communicate using complicated systems that are not easily detected. An example of this may be the terrorist attack of the Twin Towers in the United States by the Al Qaeda (Steger 2009, p.7).

Globalization has also encouraged the exploitation of laborers. Some companies are employing children to provide cheap labor in order to increase their production and maximize profits (Robertson 2009, p.76). In other countries, prisoners work under extremely pathetic conditions. Human trafficking has also increased to an alarming rate. This is common in some African countries whereby school leavers are promised white-collar jobs opportunities in the Middle East only to realize that they were recruits for commercial sex.

Free trade has also seen the introduction of substandard products in the international market. This is mostly experienced in the third world countries where cheap and substandard goods substitute the standard ones. In addition, junk foods are being sold globally with the expansion of companies like McDonalds. This has had severe effects on populations making companies spend huge amounts of money in treating food-related diseases like obesity.

With the easy movement of people resulting from improved infrastructure, the spread of deadly diseases like HIV/AIDS is out of control. As well known, the first case of HIV/AIDS was initially noted in the USA, although the disease has now spread to nearly all parts of the world. This has made many governments use astronomical amounts of money trying to prevent or search its cure.

Most cases of global pollution have been attributed to globalization (Schirato, & Webb, p. 88). Rise in new companies has lead to increase in emission of harmful waste products such as the deadly gases, chlorofluorocarbons that are wearing down the ozone layer thus leading to global warming. In addition, deadly chemical wastes directed to water sources are a threat to aquatic life.

Conclusion

Conversely, if the globalization process is to continue, it is necessary to eliminate every negative aspect of globalization. Governments should come up with policies of dealing with pollution. This may be through restricting the importation of goods by thorough scrutiny of imported commodities, thus restricting the dumping of substandard commodities to other countries. Global countries must also co-operate to curb the grave issue of terrorism. This is possible by imposing tough penalties on countries that supports terrorism activities. This may be through sanctions to countries that collaborate with the terrorists. This may be through sanctions to countries that collaborate with the terrorists. Moreover, foreign migration should be controlled. Host governments should also be free of corruption. Globalization is here to stay and we all must work together in promoting it.

References

Ali, A 2000, Globalization of business: practice and theory, International Business Press, New York.

Beck, U 2000, what is Globalization?, Blackwell Publishing Inc, Malden.

Bella, L 2010, How globalization works. Rosen Publishing Group, Inc, New York.

Bodreaux, D 2008, Globalization, Greenwood Publishing Group, Westport.

Eriksen, T 2007, Globalization: the key concepts, Oxford International Publishers, New York.

Ervin, J, & Smith, Z 2008, Globalization: a reference handbook, ABC-CLIO, California.

Goldstein, N 2007, Globalization and free trade, Infobase Publishing, New York.

Held, D, & McGrew, A 2002, Governing globalization, Polity Press, Cambridge

Hogan, J 2005, Cultural Identities, Pluralism and Globalization, Library of Congress Catalogue-in-Publication, Washington.

Martell, L 2010, the sociology of globalization, Polity Press, Cambridge

Robertson, R 2009, Globalization, wages and the quality of jobs, World Bank Press.

Schirato, T, & Webb, J 2004, Understanding globalization, Sage Publication Ltd, London.

Stegers, M 2009, Globalization, Sterling Publishing Company, New York.

Tiffin, J, & Kissling, C 2007, Transport communication, British Library Publishers, London.

Weinstein, M 2005, Globalization: whats new?, Columbia University Press, New York.

Globalization is definitely the exhortation of new millennium. The issue of effects and nature of globalization has become an insightful controversial topic and a major concern in economics nowⁱ. There are debates surrounding the unending controversy on globalization on whether unregulated market forces will either unite or differ income in the worldⁱⁱ.

Those who support globalization say that it has encouraged information exchange, raised peoples living standards, promoted cultural understanding and democracy, done away with communism and increased the power of purchasing, mainly in the westⁱⁱⁱ. However, there are those people who are against globalization, for example, the people who objected to the World Trade Organization (WTO) conference that was held for ministerial in Seattle and Quebec City^iv.

According to their views, the Wests gain is mainly expenditure to developing countries. The opponents of globalization believe that it is tantamount to imperialism and has done little but promoted corporations that reposition their factories in the regions where the labour is cheap, and environmental laws are not steady^v.

Globalization opponents believe that insecurity in the job market has increased as a result of freedom established by globalization. Unskilled workers are threatened since most companies are shifting their line of production from overseas markets to countries with low gross economies^vi.

Some think that globalization would help poor people overcome their poverty, integrate cultures, dissolve dictatorship, reverse the economic gap between the poor and rich around the world and also protect the environment^vii. However, these opponents and those who oppose globalization are fighting a tide that has already swamped all of them.

This shows how globalization has become a polarizing factor in international community. Everyone has his/her own opinion concerning globalization, but their views divide them resulting in more harm, especially when a solution is not found since both parties believe their opinion concerning the issue is right^viii.

In Wake Up and Face the Flat Earth, Thomas Friedman describes the gap that exists in the world that has been affected by globalization and its effects, such as polarization and numerous results of insecurity in a flat world. Friedman argues that globalization is a tool for intensifying inequalities that exist in the international community.

He also believes that globalization has destroyed local cultures. Thus, Friedman states that, people should not only look for information from the world web but consider looking at the reality that is present in the life web, local economies web, food web, local cultures and community web before they make any fault arguments of the world being flat^ix.

Friedman wants people/economists to view the issue of globalization polarization keenly with overturned goal of mutiny that would enable them to see that the world is actually spherical. He considers that is the only way they can see the reality of the world being flat.

In conclusion, globalization has become a debatable topic which has led to division of international community. Some people think that globalization has excluded them from many benefits while some consider that globalization has improved their lives. It is a win-win situation which has made globalization to be seen as a polarizing factor in the international community. However, finding the answer calls for more than just going beyond modernization thesis.

Bibliography

A World Bank Policy Research Report: Globalization, Growth and Poverty. New York: Oxford University Press, 2002. Web.

Bhagwati, Jagdish. Why the Critics of Globalization are Mistaken, Handelsblatt (2008). Web.

Ghemawat, Pankaj. Why the World Isnt Flat, Foreign Policy. (2007). Web.

Imade, Lucky O. The Two Faces of Globalization: Impoverishment or Prosperity? (2003). Web.

Klein, Naomi. Rebels in Search of Rules, New York Times. (1999). Web.

Stiglitz, Joseph E. Making Globalization Work  The 2006 Geary Lecture, The Economic and Social Review 39, no. 3, (Winter, 2008): 171-190. Web.

Vandana, Shiva. The Polarized World of Globalization. (2005). Web.

Wake Up and Face the Flat Earth  Thomas L. Friedman. YaleGlobal. (2005). Web.

Footnotes

i A World Bank Policy Research Report: Globalization, Growth and Poverty. (New York: Oxford University Press, 2002.) Web.

ii Lucky O. Imade. The Two Faces of Globalization: Impoverishment or Prosperity? (2003). Web.

iii Joseph Stiglitz. Making Globalization Work  The 2006 Geary Lecture, The Economic and Social Review 39, no. 3, (2008): 171-190. Web

iv Lucky O. Imade. The Two Faces of Globalization: Impoverishment or Prosperity? (2003). Web.

v Shiva Vandana. The Polarized World of Globalization. (2005). Web.

vi Jagdish Bhagwati, Why the Critics of Globalization are Mistaken, Handelsblatt (2008). Web.

vii Naomi Klein. Rebels in Search of Rules, New York Times. (1999). Web.

viii Pankaj Ghemawat. Why the World Isnt Flat, Foreign Policy. (2007). Web.

ix Wake Up and Face the Flat Earth  Thomas L. Friedman. YaleGlobal. (2005). Web.

Globalization refers to global integration of cultures, economies as well as people. Globalization has benefits, for instance, enhanced relationships between nations, increased trade as well as greater acceptance and tolerance of foreign cultures.

However, despite numerous benefits connected with the issue of globalization, it is also must be highlighted that globalization has some shortcomings that mainly affect developing nations rather than the developed ones. Globalization has negatively affected the Gross Domestic Product (GDP) of developing nations, it caused shortages of essential foods as well as resulted in escalation of prices of maize and wheat in developing nations.

Globalization of the world economies have resulted in increased market for goods and services. Nowadays, many multinational companies have engaged into mass productions as a result of increased market for their products (Brook 2003; Bhagwat 2012). Availability of foreign markets has enabled multination companies to make huge profits which have mainly benefited shareholders and those employees who work in these companies.

Most multinational companies have channeled their products in developing nations. Although, residents of the developed nations have enjoyed access to variety of products, the presence of foreign products in developing nations have caused more harm than good. This is because foreign goods have saturated the market of developing nations which have been blamed for phasing out demand for local products that has often resulted in closure of some local industries.

Most multinational industries are based in developed nation; because of their advanced technology, multinational companies are able to produce goods in mass production and sell them at much lower prices than similar products produced locally. This has resulted in over consumption of foreign products which have negatively affected the Gross Domestic Product of developing nations. In order for countries to have strong economies, they are required to export more than import (Milanovic 2011).

Nonetheless, this has not been the case for many developing nations. Many developing countries that have not been in a position to implement appropriate tariffs to regulate inflow of foreign goods have found themselves using most of their resources in importing goods they can substitute with local ones.

In addition, saturation of foreign goods in developing nations which are sold at a lower price than substitute goods from local companies have caused the shut down of local industries in developing nations. This has negatively affected the GDP of developing nations by increasing the unemployment rate in affected nations. Globalization is partly to blame for the large percentage of those people in Asia and Africa who survive with less per $ 2 per day (Firebaug 2012; Gorg 2012; Lozaday 2012; Word Bank_c 2012).

The mass production associated with globalization has caused over-exploitation of national resources. Globalization has been associated with emergence of fast food industries. The great demands for fast foods have led to clearing down forests to raise animals and birds to supply the fast food restaurants with required foods. The farms are also used to plant crops that provide feeds for the animals and birds.

Cutting down trees have negatively influenced the global climate resulting in unpredictable weather conditions, which in their term, negatively affected food productions and, particularly, developing nations which are the ones that heavily rely on agriculture. Moreover, the great demands for fast foods have caused a decrease in the production of essential foods such as maize and wheat which have caused food crisis and escalation of prices of essential foods mainly in developing nations (Word Bank _a 2012_; Word Bank _b 2012).

Bibliography

Bhagwati, Jagdish. Multinational Corporations and Development. Friends or Foes Blog, comment posted 2012. Web.

Brook, Stephen.Producing Security, Multinational Corporations, Globalization, and the Changing Calculus of Conflict. New York: Prentice Hall, 2003.

Firebaugh, Glenn. Debate about Global Income Inequality, Web.

Gorg, Holger. Globalization, Off-shoring and Jobs,  Web.

Lozaday, Carlos. Multinationals, Wages, and Working Conditions in Developing Countries. Web.

Milanovic, Branko. More or Less, IMF Finance and Development 48, no.3 (2011). Web.

Word Bank _a. GAFSP: Improving Food Security for the Worlds Poor, Web.

World Bank _b. Globalization and the Challenge for developing Countries, Web.

Word Bank _c. Poverty Data, Web.

Globalization is a contemporary term that refers to the processes and procedures employed in an effort to integrate all nations across the globe through the exchange of ideas, culture and various products. Evidently, there has been increased globalization across nations in the contemporary era in a bid to derive associated significances or benefits.

The final result of the entire process of globalization is the worldwide exchange of both natural and cultural resources among nations. Globalization is achieved through the development and advancement in the key sectors of the world economy, such as technology, culture and the political systems.

On the other hand, international strategy is one of the most vital plans employed by many companies and firms conducting international business. The strategy entails the development of alliances among the business firms as inter-firm collaboration operating within a particular economic space in specific period of time.

This greatly boosts and facilitates the achievement of the alliances goals and ambitions. Full realization or the attainment of international strategy involves three major approaches. These include global, transnational and the multi-domestic approaches. The three approaches have own differences in the manner of operations.

Global approaches to strategic management involve the eradication of many barriers that existed between many nations thus offering hindrances to international business activities majorly during the latest half of the 20^th century. Through the removal of such barriers, many nations acquired and benefited form a competitive advantage.

There has been great success in nations where global strategies are fully understood and applied besides the operations and dynamics of global industries and competition respectively. Therefore, it is important for managers to have a deeper comprehension of the global strategies and their applicability within nations and industries.

Global strategy is advantageous to the nations since they benefit from economies of scale owing to the access to more market opportunities. In addition to market opportunities, the nations are able to exploit another nations resources, such as labor and raw materials for industrial development.

There exists an extension in the product life cycle as well as operational flexibility, which involves a shift in the cost of production for various commodities across the globe. On the other hand, global strategy faces the risk from the diversification of macroeconomics since some business cycles lack a perfect correlation in some countries. Due to the diversity in the environmental operations, operational risks also put a major challenge to the success of the strategy.

Transnational approach to international strategy in globalization involves the process of transcending the boundaries of a nation. As opposed to the past business periods when globalization has been majorly dominated by the large enterprises, technologic affordability has greatly empowered the smaller enterprises to take an active part in the exploration of the global markets.

Organizations that have adopted the use of transnational approach to globalization have enjoyed competitive advantage as opposed to the other organizations waging their competitions over the domestic markets. The advantages associated with transnational strategy include wider access to the global markets as well as flexibility. However, language barrier still remains one of the greatest challenge across the globe.

Multi domestic strategies entail a set of business plans that are in use by organizations, which run their business activities in a number of countries at a time. The approaches usually differ in every country of operation. A multi domestic company must carefully choose its markets in every country with reference to the available market gaps thus enjoying a competitive advantage. However, one of the greatest challenges of this strategy is the language barrier, which hinders effective communication in the host countries.

The three levels of IT use in organizations occur as operational, decision making and strategic management. Operational levels of IT use may be employed in the day to day running of basic operations within the organization, such as accounts and finance management record keeping.

The use of IT in the process of decision making may be employed in the human resource management through development and research. IT use in the strategic management is important in the design or development of records regarding changes in the product design procedures.

Tacit knowledge refers to the information that people carry in their minds and that may not be easily accessible in a moment of need. This type of knowledge should be rarely shared with others due to inability to fully share the information contained in mind. On the other hand, explicit knowledge refers to the documented or coded information. Such knowledge can be easily shared with the others due to its full accessibility.

Flexible manufacturing is beneficial to the organizations since it maximizes profits. The approach ensures that manufacturing industries diversify in their production in order to trap full market demand. Similarly, mass customization also plays a major role in profit maximization due to the fact that the entire production process aims at responding primarily to the needs of the market.

Ethics and the four forces of ethical decision making, such as the personal ethics and the organizational ethics, are important in the maintenance of mutual responsibility and order within the premises of the organization and in discharge of duties or services. The maintenance of proper ethical standards within the organization ensures professionalism due to which the duties are carried out hence promoting the cordial relationship inside and outside of the organization.

Globalization can be defined as the increasing interdependence of countries due to increasing integration of trade, finance, people and ideas in one global market place. The main elements of this integration are international trade and cross-border investment flows.

Globalization came into effect after World War II, but its growth has accelerated since the mid 1980s due to two factors namely: reduction of transport, communication and computation costs due to advances in technology, which has facilitated companies to have different stages in the line of production in different countries; and increased liberalization of trade and capital markets, due to the lack of government intervention to foreign competition through import tariffs and nontariff barriers (Hoekman, 2004).

Free trade has been promoted by the establishment of various institutions such as the World Bank, International Monetary Fund (IMF), and General Agreement on Tariffs and Trade (GATT) (Hoekman, 2004).

It has been observed that globalization has had a considerable effect on the economic growth of East Asian economies like Hong Kong (China) and Singapore, though the same cannot be said for a majority of the sub-Saharan African nations. Such instances of imbalances between globalization costs and benefits for different groups of countries and the worlds economy have sparked hot topics in development debates.

The world trade organization

The world trade organization (WTO) is another institution that was established in 1995, to promote free trade in place of protectionism. Its role is to administer and liberalize international trade, and it took effect under the Marrakech Agreement, which replaced the General Agreement on Tariffs and Trade (GATT), founded in 1948.

Only about 3% of the worlds population is not represented in the WTO, which has 153 members. The WTO is governed by a ministerial conference, which meets after every two years, while the general council is responsible for the implementation of the conference policy decisions and assumes an administrative role (Deardorff & Stern, 2002).

Functions of the WTO

The formation of the WTO was beneficial in expanding the scope of the GATT. It was now able to take in a large number of nontariff policies, and operate based on consensus of its members. WTO acquired a greater coverage than GATT, but it also became stricter.

One of the significant differences between the two is that while GATT allowed flexibility for countries to sign at will various agreements on various issues such s subsidies or customs valuation, the WTO operates as a single undertaking, where all provisions apply to all the members (Deardorff & Stern, 2002).

Other significant changes in the WTO applied in the settlement of disputes and surveillance of functions. A negative consensus rule was adopted in the settlement of disputes, which required all the members to oppose the findings in a dispute settlement to block adoption of reports. The creation of the trade Policy Review Mechanism allowed the secretariat to acquire more transparency functions.

The fact that WTO rules apply to all members is an appealing concept especially to groups that intend to introduce multilateral disciplines on various subjects including: environment and labor standards; competition and investment policies; and animal rights (Deardorff & Stern, 2002).

There are some groups that have raised concerns regarding the multilateral rules, since the adoption of particular rules may cause negative effects on the ability of governments to regulate domestic activities and deal with market failures.

The key purpose of the WTO is the creation of codes of conduct for member governments, from the exchange of trade policy commitments during the negotiations; whereby it acts as a forum for international cooperation on policies related to trade (Deardorff & Stern, 2002).

Challenges faced by the WTO

One of the challenges observed within the first decade of the establishment of the WTO was the need to mobilize support to confront determined and increasing attacks from outside groups and individuals. These attacks were based on the belief that organization lacked democratic accountability. In addition to this, the WTO was observed as a front for multinational corporations and dehumanizing capitalist values.

Another significant challenge was in its efforts to mobilize its resources to meet the onslaughts. The WTO had it institutional viability jeopardized by internal constitutional flaws that were influenced by the pressure to legislate new rules. The WTO dispute settlement system was not allowed to add or diminish the existing rights and obligations of its members (Barfield, 2001).

Individual countries also face some challenges, due to the increasing technological and economic integration. An example is the United States, which is faced with the problem of balancing a defence of national sovereignity against grants of authority over economic and social policy, to the WTO and other international organizations.

This implies that the US needs to devise domestic political mechanisms that provide greater democratic accountability, in view of the decisions affecting US international obligations (Barfield, 2001).

Basic principles of the WTO

While the WTO does not define the outcomes, it sets the rules of the trde policy game, based on the following five principles.

Non-discrimination

The two main components are the most-favored-nation (MFN) rule, which demands that a product manufactured in one member country be treated in a similar manner to another similar product from any other country; and the national treatment principle, which demands that foreign goods that are satisfactory to the border measures imposed, be treated in the same way,in terms of internal (indirect) taxation as competitive domestically produced goods (Hoekman, 2004).

One of the benefits of MFN is that it helps to enforce multilateral rules by raising the costs to a country of defecting from the trade regime to which it committed itself in an earlier multilateral trade negotiation. If the country desires to raise trade barriers, it must apply the changed regime to all WTO members. This increases the political cost of backsliding on trade policy because importers will object.

Another benefit of MFN is that it minimizes negotiating costs: once a negotiation has been concluded with a country, the results extend to all. Other countries do not need to negotiate to obtain similar treatment; instead, negotiations can be limited to principal suppliers.

National treatment certifies that liberalization commitments are not offset through the imposition of domestic taxes and similar measures (Hoekman, 2004). The prerequisite that foreign items be treated in a similar manner to competing locally produced items provides foreign suppliers with more assurance with reference to the regulatory setting in which they function.

Reciprocity

This elements looks at the negotiating process, whereby it reflects both a desire to limit the scope for free-riding that may arise because of the MFN rule and a desire to obtain payment for trade liberalization in the form of better access to foreign markets (Barfield, 2001).

For a country to confer, it is vital that the benefits from the action be more than the benefits presented by unilateral liberalization; t is the responsibility of reciprocal concessions to make sure that such benefits occur (Barfield, 2001).

Binding and enforceable commitments

The non-discrimination principle is important in ensuring that market access commitments are implemented and maintained. The tariff commitments made by WTO members in a multilateral trade negotiation and on accession are enumerated in schedules of concessions (Barfield, 2001).

These schedules establish ceiling bindings: the member concerned cannot raise tariffs above bound levels without negotiating compensation with the principal suppliers of the products concerned (Barfield, 2001). The existence of dispute settlement procedures prevents the use of unilateral retaliation.

Small countries have a great stake in a rule-based international system, which reduces the likelihood of being confronted with bilateral pressure from large trading powers to change policies that are not to their liking.

Transparency

Enforcement of commitments requires access to information on the trade regimes that are maintained by members. The agreements administered by the WTO therefore incorporate mechanisms designed to facilitate communication between WTO members on issues. Numerous specialized committees, working parties, working groups, and councils meet regularly in Geneva.

These interactions allow for the exchange of information and views and permit potential conflicts to be defused efficiently. One of the benefits of Transparency is that it reduces the pressure on the dispute settlement system, as measures can be discussed in the appropriate WTO body. A second benefit is that it ensures ownership of the WTO as an institution; if citizens do not know what the organization does, its legitimacy will be eroded.

The third benefit of transparency is that it helps to reduce uncertainty related to trade policy. Such uncertainty is associated with lower investment and growth rates and with a shift in resources toward non-tradables (Deardorff & Stern, 2002).

Safety Valves

The governments should be able to restrict trade in various circumstances. There are three types of provisions in this connection:

(a) articles allowing for the use of trade measures to attain noneconomic objectives; (b) articles aimed at ensuring fair competition; and (c) provisions permitting intervention in trade for economic reasons (Hoekman, 2004).

The underlying rationale for intervention is that such competition causes political and social problems associated with the need for the industry to adjust to changed circumstances.

Costs and Benefits of Free Trade

Member countries experience numerous advantages from unrestricted foreign trade, including the ability for their producers to access international markets via the international division of labor and foreign competition, which allow them to produce more efficiently due to specialization and the pressure to match up to international standards.

Countries that are active in international trade enjoy numerous advantages especially in terms of technology, which is influenced by their trading partners.

Active participation also carries some risks such, especially pertaining to competition in international markets, which may result in closure of the less competitive businesses.

At the same time, some nations identify the risk of over reliance on imports for some vital products, especially those pertaining to national security, such as food. As a result, many governments try to develop their countries for self reliance in terms of food production, in order to protect themselves form uncertainties that may result in the event of a war, leading to cut-offs in food imports.

The WTO acts in a manner to discourage such protectionist strategies that lead to introduction of quotas and tariffs on certain imports. The protectionist policies result in reduced efficiency in production, due to the lack of international competition.

The inability to take part in international trade results in a lack of specialization and economic stagnation. The competitive advantage of a country determines its venture into international trade, based on the size of its domestic market, its natural resource endowment, and its location, with regard to the open seas, especially due matters pertaining to transport.

References

Barfield, C. E. (2001). Free Trade, Sovereignty, Democracy: The Future of the World Trade Organization. Westport, CT: Aei Pr.

Deardorff, A. V., & Stern, R. M. (2002). What You Should Know About Globalization and the World Trade Organization. Review of International Economics , 10(3), 404-423.

Hoekman, B. (2004). The WTO: Functions and Basic Principles. The World Trade Organization , 41-49.

Globalization is the international amalgamation of the economy, culture, technology and political forces. The globalization process has been necessitated by the advancement of technology which has enabled societies from all over the world to behave as if they are in a global village. With the improvement of infrastructure such as the internet, people are nowadays in a better position to communicate with individuals from any part of the world with great ease. The unifying of various economies, societies as well as cultures in a global network has improved the world in a number of ways.

Globalization has resulted to a rise in the world markets. Nowadays, countries as well as individuals are in a better position to import goods and services that they cannot access in their nations more easily and conveniently. This has resulted to a greater rise in the movement of goods and services across borders which have triggered a great increase of international trade within the last 50 years.

Globalization has enabled many economies of the world to have a greater access to funds since they can now have better access to external borrowings. Thus, globalization has helped the needy nations to borrow some funds for development from world banks which they pay later at a subsidized interest. Globalization has promoted Foreign Direct Investments which has enabled multinational firms to set up factories in regions where the costs of production are minimal in order to enhance their profits.

These investments have enabled these firms to improve their performance greatly. Moreover, Direct Foreign Investment has also boosted employment opportunities in nations these firms invest. Globalization has also resulted to diversity of products and services in many countries which have enhanced growth tremendously. Presence of similar products and services among diverse societies has boosted unity greatly since different societies tend to adapt similar lifestyles.

I agree with the article that globalization has greatly improved the communications process. This is because people nowadays are able to communicate more efficiently and effectively than there before. The globalization process has been accompanied by an increased advancement in the development of Information Technology. The emergence of cellular phones and the coming of internet have greatly facilitated the communication process.

Business people are now at a better position to share businesses information efficiently, despite their distances. The advancement in Information technology has also facilitated the establishment of e-business that support electronic buying and selling of goods and services. This enables customers to have diverse products and services at their dispose to select from.

I disagree with the article that globalization has improved the lives of people. As much as it has improved the living standard of some people, it has conversely, affected the lives and performances of many people negatively. For instance, globalization has resulted to e-business which subsequently promoted availability of more products to consumers. This has in turn increased competition. Stiff competition has affected performance of those firms that have not yet branded adequately.

Equally, the coming of e-business has also affected some individuals and some firms negatively by the loss of their moneys through fraud which is prevalent with electronic business. Similarly, globalization has resulted to depreciation of some currencies and particularly among those nations that mostly depend on importation. Similarly, globalization has also resulted to the loss of some cultures as a result of the aping.

Introduction

It can be stated that there is hardly an issue of social development which attracts more attention from the world like globalization. Despite being mostly associated with economy and foreign trade, such topic attract scientists from different disciplines, including economists, political scientist, sociologists and others. One of the important aspects of globalization can be related to the filed of ecology and environment. The threat of irreversible destruction of the environment is impending over our planet, the consequences of which can be tragic. Globalization, in that regard, might have a dual role in such aspects. On the one hand, globalization intensifies such threat through intensifying the development of industries and transportations  two important sources of pollution. On the other hand, globalization implies the provision of means to manage ecological threats. In Beyond Sovereignty (2009), two chapters focus on ecological interdependence, environmental problems, and the role of globalization. The present paper will attempt to provide a critical analysis of those chapters, Teng Margaret Fu (2009) and Pirages and Runci (2009), providing a parallel to the case of Burma after the cyclone Nargis, which was outlined in an online documentary by Williams and Williams (2009).

Ecological Interdependence

Understanding the term ecological interdependence can be facilitated if the video on Burma was considered as an illustrative example, title this is the way it happened. The latter will be specifically beneficial, considering that some of the examples in Pirages and Runci (2009) are linked to previous historical periods. The theme that was chosen to explain ecological interdependence is the theme of infectious diseases. Ecological interdependence was defined as the growth and maintenance of a delicate network of relationships among these organisms and between them and the sustaining of physical environment (Pirages and Runci 269). Thus, it is argued in Pirages and Runci (2009) that the occurrence and the transfer of rare infectious diseases are caused by the disruption of the system of ecological interdependence.

There are several reasons cited for the disruption of such a system. Most of such reasons are related to people coming into contact with new pathogens (Pirages and Runci 269). The latter can be subsequently linked to reasons such as population growth and movement into unsettled tropical areas. The latter is exactly shown through the illustrated case of Burma, after the cyclone. Although the documentary is mainly focusing on censorship and political corruption in Burma, several ecological implications can be outlined as well. One of such implications can be seen through tracing the movement of the population, exemplified by the story of the three children in the documentary (Williams and Williams). A typical case scenario in this documentary can be seen through the intention of the family of the kids to migrate to Taiwan. Multiplying the case into the thousands who suffered form the cyclone, it can be seen that the majority of the population that will move will be the poor who frequently due to unemployment, poverty, poor nutrition and inadequate public health might encounter and carry a host of pathogens (Pirages and Runci 276). Pirages and Runci (2009) linked such diseases as SARS and avian flu to urbanization, although in the example of Burma, the connection to natural disasters can be only interpreted and assumed. Nevertheless, such connection is supported in Turner and Khondker (2010) who stated that epidemiological crises is a clear demonstration of globalization of the consequences of disasters, where diseases such as avian flu, SARS, and/or tuberculosis became transnational due to the movement of people across borders (Turner 151).

The contrast between the ways infectious disease spread now and then is certainly not in favor of modern times. In that regard, it is argued in Pirages and Runci (2009) that diseases are now spread more rapidly and widely, through increased travel and integration of worlds food market. In the case of Burma, globalization can be seen two fold. On the one hand, the sanctions from the global society, due to the political regime, imply that food markets might not be integrated in such area. On the other hand, the positive effects of the globalization in managing and containing the after-math of the cyclone were prevented by the government of Burma. Accordingly, the migration of the population after the cyclone is more resembling of the way the diseases spread historically, through slow migrations. Nevertheless, the globalization might still have an effect on managing ecological problems and other associated issues.

Globalization

In Fu (2009), the main focus of the author was directed toward outlining the relation between globalization and environmental problems. In that regard, it can be stated that one of the most interesting points was argued through showing a positive influence of globalization in negating some of its own negative effects. The positive consequences can be seen in limiting the development of projects which are expected to negatively influence the environment. The overwhelming global interest with the concept of sustainable development can be seen as one of the consequences of globalization. Similar to infectious diseases, outlined in Pirages and Runcie (2009), states tend to cover on the events that influence their reputation, especially if such influence can be translated into negative economic outcomes (Pirages and Runci 279). Although, it is argued in the paper that environmental problem are closer in essence to being global problems. In that regard, it is stated that globalization might be useful in overcoming some of the limitations of different political systems, borders, and uneven development of state economies. An element that is omitted in Fu (2009) while posing one of the major challenges can be seen through the corruption of the political system. Thus, the role of globalization can be seen twofold in that matter. On the one hand, the documentary is an evident example of the concern of the global community with the state of Burma and its population, raising the awareness to possible consequences. On the other hand, globalization can be helpless, in politically bankrupt states, considering the Burma case when involvement of global community was monitored, while aid and supplies was rejected.

For countries such as Burma, which in the documentary was deemed without ideology, such rejection and isolation from the world community influenced only the population, rather than the government. Other countries, cannot risk such sanctions, where free trade rules threaten countries with high environmental standards (Fu 323). Although the case in the documentary is concerned with environmental consequences and aid, rather than environmental standards, the way globalization can be a factor is evident in both cases. One of such mutual aspects can be seen through transnational advocacy, where pushing environmental agenda would not have been possible without globalization, as well as bringing the attention tot the situation in Burma. Although, the response is not strong as expected, which can be evident in both cases, through example of Chinas dam development outlined in Fu (2009) and the example of journalist involvement in bringing the attention of the world community to the situation in Burma (Fu; Williams and Williams). It should be noted that despite the role of globalization in overcoming some of the problems that might be posed by existent global challenges, Fu (2009) did not mention the role of globalization in creating part of the existent problems. In that regard, unlike Pirages and Runci, the role of globalization can be implied in the movement of the population, Fu (2009) the negative aspects of globalization were not mentioned. Nevertheless, regardless of the negative consequences of globalization, it positive aspects are still limited, empowering traditionally weak actors (Fu 331).

Conclusion

In conclusion, it can be stated that there is a direct relation between globalization and environmental problems. Such relation mi9ght extend into a scope wider than th4e consequences of natural disasters or advocating for stopping a dam project. The present paper critically analyzed two works devoted to issue of globalization, ecological interdependence and environmental problems, Ecological Interdependence and the Spread of Infectious Disease (2009) by Pirages and Runci, and Globalization, Global Environmental Problems, and Transnational Advocacy Networks (2009) by Fu. The works were connected ton the case of Burma, which was outlined in a documentary titled Eyes of the Strom. The paper concludes that globalization has a positive role in overcoming many challenges that exist between development and environment, as well as responding to the environmental problems that might occur due to such challenges.

Works Cited

Fu, Teng Margaret. Globalization, Global Environmental Problems, and Transnational Advocacy Networks. Beyond Sovereignty : Issues for a Global Agenda. Ed. Cusimano, Maryann K. 4th ed. Boston, NY: Wadsworth, 2009. 313-31. Print.

Pirages, Dennis, and Paul Runci. Ecological Interdependence and the Spread of Infectious Disease. Beyond Sovereignty : Issues for a Global Agenda. Ed. Cusimano, Maryann K. 4th ed. Boston, NY: Wadsworth, 2009. 264-80. Print.

Turner, Bryan S. Globalization East and West. Thousand Oaks, CA: SAGE Publications, 2010. Print.

Williams, Evan, and Jeremy Williams. Eyes of the Storm. 2009. Online Media. Public Broadcasting Service Video. WNET.ORG. 2010. Web.

The term globalization is a universal term that comes with very many definitions that encompass many elements. However, the most popular definition that is in the public domain defines globalization as a greater movement of people, goods, capital and ideas due to increased economic integration.¹ This is later propelled by rampant trade and investments that blossoms and hence, appear as though you are moving towards living in a borderless world.¹

Globalization entails the exchange of diverse elements that include cultures, services and goods, among others. Initially, these processes of exchange of these elements were hampered courtesy of limitation in technology. However, with increased technology, there has been a speedy exchange and as such, propelled the rate of globalization. It should be noted that the inception of globalization does not automatically guarantee the benefits of the same.

In order to harvest the benefits of the same, there ought to be strong policies, infrastructures and institutions. Even as we enjoy the benefits of globalization, the problems that come with the same cannot be swept under the carpet. These problems are so evident to be undermined. In synopsis, this essay will focus on the impacts of globalization in both the rich and the poor nations.

Generally, the title impacts of globalization evokes a strong feeling that makes one to narrowly think about modernized infrastructure, telecommunication among other physical aspects. However, this term is much complex in that it touches on many issues that stem from politics, life expectancy to culture. If globalization is supported by strong policies and institutions, a country stands to gain immensely.

To begin with, the economies of those countries that openly interact with the international community are perceived to grow at a faster rate vis a vis those with closed economies. Numerically, it has been calculated that open economies grow at a rate of two and a half percent higher than closed economies.² As a result, there will be reduced poverty, and as such, there will be improved standards of living. This is evident in countries like China and India, which have made giant strides in curtailing the poverty levels.

Another benefit enjoyed by a globalised country is that its citizens enjoy accessibility to cheap and yet effective medical services. This reduces the death rates, and as such, there would be an increased life expectancy. The worlds current life expectancy stands at sixty years which is about 200% the life expectancy a century ago.

Globalization has led to the formation of global institutions such as the World Bank and the World Trade Organization which have become part and parcel of these nations such that they cannot be neglected. As a result, this has led to overdependence on these bodies, and as such, these countries can be manipulated for the benefit of fostering peace and unity around the world. This is so because no nation would like to breach the international relations lest it risks being denied the monetary benefits.

These bodies use sanctions to reinforce peace the world over. Another benefit that is closely linked to political stability is the evolution of democracies from dictatorial to liberal democracies thanks to modernized communities³. This has led to the collapse of dictatorial governments as they are being substituted with democratic governments.

The perception people harbour when referring to the term globalization tends to overlook the negative impacts of the same towards a country. On the contrary, the negative impacts of the globalisation have equally the same impacts as its benefits. It is, therefore, imperative to look at either side of the coin in order to evaluate the overall impact of globalization. As regards the negative effects of globalization, there are several factors that portray globalization negatively.

To begin with, the inception of globalization in a given country is perhaps thought to be costly economically as well as socially. Liberalization of trade naturally credits the competitive market as it punishes the uncompetitive market. It, therefore, follows that in order for the below par market to compete favorably, it has to restructure in order to reform itself. All this come at a cost to the immediate regime even though the benefits will be long term.

The effect of globalization on the standards of living is one factor that has received mixed reactions. Whereas some countries perceive this impact positively, some perceive them negatively.³ For instance some statistics have shown that there is no mutual benefit between the groups of poor countries and rich countries. Instead, the gap between the two has continued widening and as such, the poor countries have continued retrograding as the rich ones progress.⁴

One other effect that globalization has impacted negatively to populations is the spread of deadly diseases e.g. HIV, cancer among others. The rate at which these diseases spread globally is alarming thanks to the ease of movement and trade. As a result one cannot help but to live with it.

In a conclusion, the term globalization is a broad term that encompasses several aspects that cuts across many elements that include economical, socio-economical as well as political issues. Globalization has both the merits and demerits that come with it. However, in order to benefit from the same there is need for existence of strong institutions and policies.

1. J. Bhagwati, In Defense of Globalization (Oxford, New York: Oxford University Press, 2004), 14-16.
2. J. Sachs, The End of Poverty (New York, New York: The Penguin Press, 2005).
3. Takis Fotopoulos., Globalization, the reformist Left and the Anti-Globalization Movement. Democracy & Nature: The International Journal of Inclusive Democracy, 7/2 (2001), 46-50.
4. Robert Wade. The Rising Inequality of World Income Distribution, Journal of Finance & Development, 38/ 4 (2001), 23-30.

Bibliography

Bhagwati, J., In Defense of Globalization (Oxford, New York: Oxford University Press, 2004).

Fotopoulos, Takis., Globalization, the reformist Left and the Anti-Globalization Movement. Democracy & Nature: The International Journal of Inclusive Democracy, 7/2 (2001), 46-50.

Sachs, J., The End of Poverty (New York, New York: The Penguin Press, 2005), 34-40.

Wade, Robert. The Rising Inequality of World Income Distribution, Journal of Finance & Development, 38/ 4 (2001), 23-30.

The world is arguably moving irreversibly towards integration. Although globalization has been defined as a process that can help developing countries better their wellbeing, it increasingly becomes clear that globalization (the current model) is actually creating many challenges for poor countries (Benuri 431). Theoretically, a liberalization of global economies is expected to empower poor countries due to sharing new technology, market accessibility and free movement of resources (Frankel 196).

Unfortunately, the current process of globalization is built on a pre-existing model that has been exploiting poor countries over the last years (Castles 240). As it has been evident in the last decade, western countries will continue to guard their selfish interests against those of the developing world (Eichengreen 11). The 1999 UN report indicated that less than 20 poor countries had benefited from globalization (Kitson 233). The contribution of developing countries in the proportion of international trade decreased from 1.4% in 1970 to a mere 0.4% in 1995 (Kitson 233). Moreover, the gap in per capita earnings between poor and rich nations grew to over 70 times (Kitson 233).

The main drivers of globalization have been multinational companies (Charles 230). Globalization has enabled these organizations to increase their global presence, expand their market share, and increase their earnings (Herring 180).

The interest of multinational companies has primarily focused on increasing their net earnings at the lowest possible cost (Charles 230). Since small scale industries in developing countries cannot compete with powerful multinational companies that invade their markets, many small scale industries in the developing world have collapsed, thus, leading to loss of working places there (Dunning 54). Usually, multinational companies transfer a large percentage of their earnings to their home countries, hence, creating foreign reserve deficits in developing countries (Castles 240).

Questions are also raised in regard to the capacity of developing nations to exploit opportunities that will result from a globalizing world (Grassman 126). The presence of an educated populace in western countries is credited with developing creative business solutions that have helped to expand their countrys economies (Dunning 54). It remains doubtful if developing countries can have talented individuals who can make business solutions that would compete against those from the developed world (Harris 80).

Such reasoning is informed by the presence of low quality education in most poor countries and the lack of resources for promoting creative solutions there (Cosh 98). Since the global economy is increasingly moving towards a knowledge based economy, poor countries will increasingly find it difficult to develop businesses that can compete against those from rich nations (Charles 234).

Works Cited

Benuri, Schor. Financial Openness and National Autonomy. Oxford: Clarendon Press, 2004. Print.

Charles, Hill. International Business: Competing in the Global Marketplace. New York: McGrawHill, 2011. Print.

Castles, Miller. The Age of Mass Migration. Basingstoke: Macmillan, 1993. Print.

Cosh, Hughes. Openness, Financial Innovation, Changing Patterns of Ownership, and the Structure of Financial Markets. New York: Macmillan, 1992. Print.

Dunning, John. Multinational Enterprises and the Global Economy. Wokingham: Addison-Wesley, 1993. Print.

Eichengreen, Irwin. Trade blocs, currency blocs and the reorientation of world trade in the 1930s. Journal of International Economics 38.1 (1995): 124. Print.

Frankel, John Measuring international capital mobility: a review. American Economic Review 82.2 (1992):197202. Print.

Grassman, Simon Long-term trends in openness of national economies Oxford Economic Papers 32.1 (1980): 12333. Print.

Harris, Kenneth Managing the Global Economy, Oxford: Oxford University Press, 2002. Print.

Herring, Litan. Financial Regulation in the Global Economy Washington DC: Brookings Institution, 1995. Print.

Kitson, Michie. Trade and Growth: A Historical Perspective. Washington DC: McMillan, 2005. Print.

Taiwans political system

According to Chen (np), Taiwan has developed by using mercantilism which proposes the economy is inferior to politics. Economics is looked at as a way of escalating state power therefore national interest takes priority over the market place. Wealth and power are corresponding contending objectives and economic dependence on other states should be completely evaded.

Mercantilism believes that economic action is and should be subsidiary to the major goal which is to build a strong state. Economics is a political tool whereby ones states loss is another states gain. Recent mercantilist way of thinking has led to the successful development of East Asia states not excluding Taiwan.

Patterns of globalization

Arguably, Taiwan has adopted a transformationist pattern of globalization. From the 1970s Taiwan in its efforts to escape from the colonial divisions of labor and forge economic development, it majorly emulated Japan. It adopted an export-oriented industrializing approach, carving out markets for itself in the world economy. Furthermore, Taiwans nation state has been evolving, especially political democratization, with the state been a catalyzer.

The winners and losers in Taiwan can be represented through the NIE perspective.

Taiwan contends that globalization is the vital driving force following main economic, cultural, social political changes in the population of the world today. The new world order architecture is advancing looking at the general outcome of directly intertwined activities leading to change in various fields for example, technology, governance, communication just to mention but a few (Castles 24).

Global cities and competitive advantage of Nations

According to Kwok (163), Taipei, the capital city and the largest city in Taiwan has become one of the global cities through the production of high technology and its components. In reference to China Economic News Service, Taiwan is now one of the creditors of economy, which holds one of the worlds largest foreign exchange reserves.

The GDP per capita in Taipei is US$48,400 making it the second highest in Asia following Tokyo and 13^th among world cities.

Taipei holds the industrial area of Taiwan, which holds both secondary and tertiary sectors. This shows that not only is Taiwan a developed nation but its capital city is one of the global cities in the world today showing that Taiwan is not only developed as country but also its cities are developed as well (Castles (24).

Taiwan products can not enjoy monopoly rent although they have a huge market share this is because competition ion Taiwan itself is quite stiff and the fact that there are other cheaper goods flooding the markets from foreign countries makes the situation worse.

Most Taiwan industries belong to individual families and efficiently thoroughly supervised, hence there is no motivation as both the owner and manager are like minded and their thoughts and goals are the same. This most certainly why, Taiwan firms and industries have been enabled to act in response and fine tune fast to the ever changing competitive advantage (Fitzgerald 104).

Taiwan and non-polarity

According to Chen, Taiwans liberal foreign policy is an effort by the country to fine tune itself to the age of non-polarity. Taiwans cessation from China and its overdependence on the United States of America had a huge negative impact on it. This largely affected its GDP dropping form 5.7% in 1999 to -2.17%in 2001; with the help of the United States of America crisis in 2007 Taiwans GDP was at 4.13%. Taiwan needs to make sociable relations with other countries so as it can continue to grow economically. At the moment, Taiwan is pushing for bilateral free trade agreements (FTA) with particular nations that make up the ASEAN (Association of Southeast Asian Nations).

Economy of Taiwan

The relations between the state and the corporations in the country can be described as collective capitalism, which was first developed in Japan after the Second World War.

Looking at the Taiwanese economy, real process of the capitalist socialization of production is evident though in an unclear means because it does not take into consideration the seminal reality that the rights to the means of production are privatized are held by the capitalist companies, unlike in market-oriented capitalism where it belongs to individual capitalists. The economy embraces free competition and monopolistic private enterprise. There is collective labor of many employees in large companies and the correlation of various stages and sector of production.

The Taiwanese economy is driven by relational markets, which put much emphasis on the cooperative long-term engagements. For instance, in the intertwined share rights, where majority of the organizations hold rights in other firms; as seen this has resulted in a lot of collaboration between the concerned firms, since each is concerned of the others activities.

Taiwans geopolitics of energy

The country has considerable natural resource, for instance coal, petroleum and natural gas deposits. Taiwans energy generation is approximately 55 percent coal-based, 18 percent nuclear power, 17 percent natural gas, 5 percent oil, and 5 percent from renewable energy resources.

However, due of the extensive exploitation all through from Taiwans pre-modern to its modern time, its natural resources have been almost depleted. Nearly all oil and gas for transportation and power needs must be imported, making Taiwan particularly sensitive to fluctuations in energy prices (Munck 45).

Due to this, Taiwanese Executive Yuan intends to increase power generated from renewable sources to 10 percent by 2010, doubling it from the current 5 percent. Through encouraging renewable energy, Taiwanese hope to also aid the nascent renewable energy manufacturing industry, and develop it into an export market.

Taiwan is rich in wind energy resources, with Wind farms both onshore and offshore, though limited land area favors offshore wind resources. Solar energy is also a potential resource to some extent (Munck 47). This energy situation in Taiwan has attracted American and German corporations, which have constructed numerous wind farms.

Furthermore, much of its forest resources, were greatly exploited during Japans regime rule for the building of temples, though efforts have been made to recover then. Nowadays, forests do not contribute significantly to timber production largely due to production and environmental concerns. Many industries have been subsequently shut down due to depletion of the scarce natural resources and also due to the down fall of international market demands.

Taiwans domestic politics believe that outsourcing is a key pillar towards its financial recovery and to take advantage of its strategic positioning in global production.

It has continuously supported outsourcing though incentives, such as taxation, and marketing its outsourcing industry. Notably, the country has been able to solve the puzzle of economic development considering its emerging economy and its global standing.

Works Cited

Castles, Stephen. Development, Social transformation and globalization. Centre for Asia Pacific Social Transformation Studies workshop 23-25 June 1999. 1999. Web.

Chen, Jin. Taiwan Pursuing Free Trade Pacts with ASEAN states. Taiwan News. 14 Oct 2008. Web.

Fitzgerald, Scott. The competitive Advantages of Far Eastern Business. New York: Routledge, 1994. Print.

Kwok, Yin-Wang. Globalizing Taipei: the political economy of spatial development. New York: Routledge, 2005. Print.

Munck, Ronaldo. Globalization and social exclusion: a transformationalist perspective. Bloomfield CT: Kumarian Press, 2005. Print.