Business Economics

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Globalization ESSAY

WHAT ARE THE MAIN REASONS FOR INCREASED GLOBALIZATION

WHO BENEFITS FROM IT ?December 13 , 2007 WHAT ARE THE MAIN REASONS FOR INCREASED GLOBALIZATION

WHO BENEFITS FROM IT Many business organizations struggle to gain worldwide market to seek for more revenue sources- profit ' at endings . One example of a global company is the Microsoft Software company which is dominating the computer software industry . It is no doubt that their effective globalization effort is the secret behind its success . Looking at a typical economic view , its effects are

clearly seen in our daily lives from purchasing of goods , daily works , currency fluctuation rates , rise of new business establishments (e .g . call centers , and other economic activities (e .g . production of goods , imports and exports . In short , it had made life easier than before

Globalization is defined as the increasing interconnection of people and places as a result of advances in transport , communication , and information technologies that causes political , economic , and cultural convergence Source : Globalization [online] http /en .wikipedia .com [December 11 , 2007] . It is a process of international integration of national goods financial and labor markets , a process driven by firms in their continuing search for profits , and a process used by market arbitrage to control prices of certain products by ensuring that it is sold at the same price on different location . Looking at the definition , we can directly conclude that globalization is directly proportional with economic and infrastructures progress , and technological advancement . It is because these developments enable cross-b transaction among one or more parties to take place even though they are on different locations around the world . It also facilitates sharing of modern techniques and innovative ideas from one place to another . The increasing demand in the adaptation of e-commerce is one form of making your business global , establishments of Call Centers in different parts of the world which aims to globalize the way services are rendered

Brief History of Globalization

Its early days can be traced back in the early 18th century when trading started between European colonies , and United States . However , it progressed more in the 19th century . The discovery of sea routes to different parts of the world enabled many progressive countries to share goods and products among neighboring countries . At first , debates of the conflict between trade openness and protectionism had taken place Source : Thomas I . Palley , The Economics of Globalization - A Labor View Page 76 . Environmentalist and promoters of social cultures feared that globalization will have an effect on the environment and will degrade cultural and societal values , and a threat to local products and services providers . Some feared that foreigners will gain control over their native lands and will promote inequalities among races . However there are people who struggled to promote the benefits of Globalization Significant events like Bretton Woods Convention ' and Uruguay Round ' that had taken place from 1984-1985 had contributed to the rise of World Trade Organization (WTO , and the North American Free Trade Agreement (NAFTA . These conventions aims...