Discussion on organizations and several other businesses

Globalization

Definition of globalization

Globalization is referred to as the process by which organizations and several other businesses start their operation at an international scale or establish the international influences in the economy. The term globalization can also explain the path and ways by which the people and countries of the world can easily integrate and interact with each other. There are several things that have become globalized as people come in to contact with each other. The economic globalization is considered how the countries are connecting with each other and coming tighter as one of the big global economies. Globalization also plays a central role in order to make international trade easier in the world. Globalization is the particular term by which emerging economies come closer to each other (Clark, 2015).

Drivers of globalization

There are various drivers of globalization that are commonly speaking out by the various studies and websites. There are drivers of the globalization such as;

Technological drivers of Globalization

Technology is referred to as the set of the foundation for the modern globalization; Innovation is particularly known as the transportation technology by which the industry can easily revolutionize.   

Political drivers of Globalization

Deregulated markets, as well as rules of liberalized trading rules, are leading towards the lowered tariff. These rules also allow foreign direct investment around the globe. The WTO (world trade organization) is developed for all of these purposes.    

Market drivers of Globalization

Nowadays, the domestic market is going to become more saturated. For the growth, the opportunities are limited as well as the global expansion is considered as the most important way that is chosen by the entire organization.

Describe the changing nature of the global economy.

There are the particular four qualities by which the changing nature of global economies can be explained in extensive manners, and these qualities are;

In the world trade picture as well as in the world, the US is dominant.

In the foreign direct investment of the world, the US is the dominance

The changing nature of globalization has dominance on the multinational firms of the US, the dominance of large on the international business scene.

The changing nature of the global economy spread roughly half of the globe; It can centrally plan economies in the world of communist. It was off-limits to Western international businesses.

The impact of globalization

The globalization is considered as the one of the most important and significant factors that can be initially utilized in order to expand the business at international levels.  The terms of the globalization is consisted on the various meanings for different people of different regions. Globalization has its significant impacts on the organization because under these concepts the economies are growing effectively. The organizations are meeting at the international scales in order to offers the various terms of the trade. It offers the significant ways to perform the business opportunities at global level for the numbers of the organization. The various MNEs are meeting at the scales for offering the terms of trade to each other. (Sergeevich Rozanov, 2013).

Globalization is creating opportunities

·         The income level rises

·         Economic growth stimulates

·         Jobs create

·         The lower and least prices for services and goods

Globalization is creating challenges

·         There can be unskilled workers for downwards pressures of the rates of wages

·         Losses of Jobs

·         Degradation in the environment

·         The cultural imperialism of multinational enterprises and global media

·         The economic powers are shifted away from the national government, and it moves towards the supranational organization

·         It creates a gap between poor and rich nations that have been gotten wider.