The Top Ten Management Primer on The Globalization Debate: All That You Need to Know About Whether Globalization Will be Our Doom or Savior
This review of the top ten things you need to know about The Globalization Debate was prepared by Shawn Herbert while a Business Administration major in the College of Business at Southeastern Louisiana University in Hammond, Louisiana.
IntroductionGlobalization is like the robin hood of economies. It takes from one and gives to another, but unlike Robin Hood it can give back to those it takes from. As technology has advanced so has our economies, with the result being companies are going global looking to get that comparative advantage. This has created jobs in places and losses in others. Some argue that globalization does more harm to the economy while others argue that it will improve the overall global standard of living which we all will benefit from. We do know that barriers to economies are weakening globally so that global trade and distribution is becoming easier. What you will find in this article is an argument of both sides, facts, maybe a statistic or two, and a video, so you can be better informed to make your own opinion. The Idea in a NutshellGlobalization will always be debated whether you’re an advocate or a critic. In today’s society we are becoming more integrated with everything we do which in turn drives our global economy to become more integrated on a global scale. Barriers will rise and fall but the trend has been more towards falling as the world’s economies become intertwined in one another. Whether you believe this is good or bad, only time will tell. The 10 Things You Need to Know About the Globalization Debate1. What exactly is globalization? It’s the global increase of economic relationships of different countries to reduce barriers so that the flow of goods and services increase between economies. Tariffs, fees, and quotas, all are barriers to global trade and as in our case, globalization. 2. Some proponents of globalization have declared that globalization helps poorer nations catch up economically to more developed nations. Technological advances, higher employment, and better wages are a few benefits that proponents will tell you come from globalization. The economies of Asian countries are touted as examples of the success of globalization. 3. The rich keep getting richer, while the poorer keep getting poorer. This is an argument against globalization that some people believe. It is the belief that companies will outsource to countries where wages are very low, taking away jobs from more developed countries. Less restrictions, government regulations, and environmental controls, allow developing nations to be more competitive in their pricing. The company wins but the original economy loses out. 4. Globalization helps keep inflation in check. The realization that companies now have to compete in a global marketplace has kept prices in check. A company now has to think in global terms of price competition as companies have global competition as import prices have fallen. In turn, this cap on prices, keeps inflation in check so that it may not stagnate economic growth. 5. Critics of Globalization say that companies are just profiteering from poorer nations. These poorer nations are paid lower wages, longer hours, and in some cases there are no safety standards. Child labor and exploitation of people can run rampant. It allows companies to make items cheaper while charging the same price, thereby increasing profits. 6. An open economy is beneficial to the economy as a whole. Since the market is globalized, this creates competition on a global scale. When you have so much competition it forces companies to innovate and create new technology. This in turn allows products to be of better quality or possibly the creation of new products. 7. How can globalization benefit an economy if that economy is losing millions of jobs to other nations? This is an argument critic’s use against globalization. What may benefit the global economy may not benefit a particular nation’s economy. America has lost millions of jobs to outsourcing with nothing to replace those jobs. 8. The overall standard of living will increase globally which in turn creates wants and needs which helps all economies to grow. This is a concept among people who support globalization. They see a better global economy as better in the long run for all people. 9. From 2000 to 2002, America lost over 4 million jobs due to companies outsourcing manufacturing and services to other countries. The trend has continued, though not as significant. Globalization is blamed for the loss of jobs and some critics claim this will continue to happen as long as there is cheap labor to be exploited. 10. The fact is, globalization will hurt some people while helping others. We do not know what the long term effects will be overall, whether they are beneficial or debilitating. It does look like with the current trade agreements in place and openness of economies that we will find out. The Video Loungeclip: My TakeGlobalization is here and it looks to me as if it’s here to stay. As our society has become more open with the internet, Facebook, telecom systems, it has enabled us to reach any part of the world. My take is that we have to embrace globalization and see how we can best use it to advance our economy and better our lives instead of using resources and trying to find ways to deter it. Like it or not, it is here, so let’s explore it and exploit to our advantage. ReferencesBusiness Week. (2000). The Pros and Cons of Globalization. Retrieved from http://www.businessweek.com/2000/00_17/b3678003.htm Contact InformationTo contact the author of “The Top Ten Management Primer on The Globalization Debate,” please email Shawn Herbert atshawn.herbert@selu.edu and sherbert30@gmail.com. About the PublisherDavid C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Management, can be viewed athttp://wyldaboutmanagement.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of his student’s publications regarding:
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Globalization is the main way ideas and understandings are created. Companies most of the time are the ones that create policies in foreign countries or are the reasons to why governments get involved with one another. Great info by the way.
While some may feel globalization detracts from a local economy and harms local jobs, those same people who find globalization offensive have no problem benefiting from the lower wages of outsourced jobs. All the local consumer truly cares about is how much their groceries cost at Wal-mart. When it comes to hitting their pocketbook, they would would rather pay lower prices than worry about whether some Joe Schmoe that they don’t know has his job or not. I personally don’t feel that globalization negatively affects the local consumer when the company is responsible and adheres to responsible ethical standards.
This is something that is going to be around pretty much forever.In todays world this is something that is very easy to accomplish. The internet makes this much more possible.