Governing Global Business: Globalization and the State - Assignment Example

?GLOBALIZATION AND THE GLOBALIZATION AND THE Introduction Globalization is the integration of economies, cultures, markets and industries through the global trade network of communication, transport and trade. Globalization has become rapid and integrated socioeconomic and sociocultural factors such as culture, technology and media, in addition to biological factors such as the global climate change (Lauder, Brown & Ashton, 2008). According to critics of globalization, it has caused or has been an exploitation factor to many in the developing world, and has caused increased poverty levels and has produced negligible benefits as compared to its interference on many lives in the developing world. Contrary to the globalization critics, the embracers of globalization have suggested or reported huge reduction of poverty levels in their respective states, which has led to huge economic growth and produced the leading world economies, such as China and India. It is therefore sound to state globalization as both effective and affective, in the sense that it has led to the growth of economies and led to the interference of many lives around the globe. There has been a rapid and enormous growth in global trade since the end of World War II, in the terms of rampant international trade due to the increased interactions and relations amongst regions and states. The communication sector has seen a huge reduction and improvement in the terms of costs, which have declined intensely and improved the communication networks. The reduction in the communication costs has facilitated the relationship between nations, and thereby facilitated international trade. The growth in international trade has led to the rampant growth in the global trade, with cheaper communication through the use of the web, telephones and other mobile devices, and the outsourcing and innovation in the information and technology sector. Globalization has impacted on the trade sector of the economy, especially on the international trade that has affected direct foreign investments and the larger international capital flows. The process of high interdependence among states and their citizens, due to globalization, during the global economic downturn has proven to have negatively affected many economies that have been struggling to get back to an economic on-toe. Many state economies are affected by the poverty levels, which demand the implementation of strategic economic policies. Poverty reduction strategies must be employed in order to facilitate sustainable poverty reduction indices, which are raised by economic growth. Economic growth requires policy frameworks to be able to counter the unpredictable global economy. The responsibility of economic policy in the developing states or countries is rested upon the respective governments, with critical international trade relations playing vital roles in the development and sustenance of international trade, and the global trade at large. The development of the international trade mainly depends on the governments of the developing countries, the determinants of the global intellectual climate, governmental and non-governmental organizations, and individuals (Claes & Knutsen, 2011). The economic globalization has resulted from the increase in international trade, especially involving manufactured foods and other products, the increase in the international financial flow, in addition to the increase in the flow of labor (Sweeney, 2005). There has been intensively growing research on globalization and the global economy to unearth the impacts of globalization on the global economy since the end of World War II. After World War II, there was the establishment of the international financial order to facilitate the resolution of the global trade volume and maintain a steady economic growth (Mcandrew, 2009). The occurrence of the global economic downturn due to the war, known as the Great Depression, affected global trade, with states employing economic globalization to be able to sustain their economies during the tough economic times. Globalization has helped developed countries to recover from the economic downturn, especially through the regulation and growth of their capital flow (Claes & Knutsen, 2011). The global gross volume of international cash flows relative to the global gross domestic product (GDP) has grown extremely, as compared to the period before and during the World War I and II. Globalization in the modern system of labor flow has gradually declined, though there is an increased labor flow due to migration. Globalization has affected people’s lives through economic influence, which has led to increased labor migration, increased consumption of international goods, international tourism, and international communication (Karlstad, 2011). Globalization has economically brainwashed some people, whereby they tend to concentrate in international economic activities rather than growing their national economies (GhaurI & Powell, 2008). This has put a barrier on the developing economies, whereby the economic growth is derailed through massive exportation of labor and huge importation of manufactured goods instead of practicing local or domestic consumption, laboring and tourism to promote national economies (GhaurI & Powell, 2008). Globalization is driven by political, technological and biological factors, and causes huge non-economic impacts (Buelens, 2000). For example, the military and political dominance in the United States is resented by globalization critics, as well as the influence of the American culture that tends to compromise on other local and regional cultures (GhaurI & Powell, 2008). Evolution and innovation in the technology sector has resulted from the massive globalization that has improved the communication and infrastructure systems (Dyer, 2011). Globalization has led to rapid growth in the technology and communication sectors, and hence has acted as a counter to corruption, accidents and terrorism (Labadi & Long, 2010). However, terrorists are also using modern innovations, in line with growing technology, thereby posing great threats to national securities of both the developed, developing and the third world countries (Dyer, 2011). On a positive note, globalization has increased labor flow, which has in turn impacted on the integration of the labor market through the increment of remittances from international laborers (Chang, 2003). The remittances from the international laborers serve as a major export for many third world and developing countries (Anderton, Brenton & Whalley, 2006). Globalization has increased the rate of international trade and the exportation of labor, which has led to increased remittances that has led to economic growth, in the developing and third world countries. Increased technological innovations and growth has led to the importation of high-tech production equipment, which has led to an increase in the production knowledge (Anderton, Brenton & Whalley, 2006). Economic globalization has led to the development of production lines, due to technology development and innovations, which has in turn led to the production of high-quality products. The high quality products increase the export demand, especially to the third and developing countries, which leads to the growth in international trade (Ciochetto, 2011). Changes in technology have led to the development in the production sector, which has led to the rapid growth in the terms of productivity (Brown & Lauder, 2006). Globalization has many risks; however, many states have opted to globalize their economies for a balance between their exports and imports. This is bound to help in the regulation and growth of the GDP and/or the GNP (Karstedt, 2011). Developing countries consider both the costs and benefits of the international trade, which is established and regulated by the globalization of the world economy (Brown & Lauder, 2006). The costs and benefits of the international trade depend on the domestic markets, location and available natural resources (Dyer, 2011). The globalization of the economy poses multiple challenges, including the critical preservation of indigenous cultures that have been overridden by globalization (Ashton, Brown & Lauder, 2008). The third world countries, in addition to the developing countries, must establish poverty reduction strategies to facilitate poverty development that is core in the economic growth and development (Karstedt, 2011). Rapid economic activity has led to beneficial growth to individuals and the developing state economies through facilitated and higher standards of living (Ashton, Brown & Lauder, 2008). An improvement in the standards of living is an indication of reduced poverty indices, which facilitates faster economic development. Globalization of the economy has facilitated and enhanced faster economic growth in the developing countries and raised the standards of living for many citizens. It has also enhanced innovation through the use of modern technology, which has established and presented economic development chances for the citizens, and the developing countries at large. Globalization has been integrated with rapid evolution in information and technology to enhance the growth of economies and raise the standards of living in the developing economies (Kloet, 2010). Globalization has raised economic relations and has provided a smooth platform for international economic trade through increased importation and exportation of manufactured products (Kinley, 2009). Globalization has increased consumption of international goods and services, which has led to the growth of economies through international trade. On the other hand, the consumption of international or imported goods and services in the third world and developing countries has hindered promotion of local economies and led to increased poverty indices. Poverty reduction is hindered by globalization, and hence the growth of local developing economies is also hindered (Berger, 2006). Globalization has led to rapid growth and innovations in economies, with the revolution and innovations in communication and information technology, providing unlimited eased information access for individuals (Ciochetto, 2011). Currently, markets have become global with some corporations being richer than some countries (Keep, 2004). International trade has been prevalent but has been facilitated by the economic globalization through increased international importation and exportation that have led to a rapid growth in the international trade (Berger, 2006). Globalization has led to the liberalization of economies through reduction of trade hurdles. Technological revolution due to globalization has diversified the economies in the developed world countries (Milliot & Tournois, 2010). Research has proven that globalization comes with many risks, though it has resulted to stability of economies (Akokpari, 2001). Globalization threatens the cultural and religious underpinnings of societies and states in the long run. Economic growth leads to improvement of international trade and international relations. Critics of globalization suggest that it allows the economic giants and rich individuals with business interests to intrude into local cultures and override local traditions, which has proved that globalization threatens and interrupts the ways of life for many (Berry, 2011). As a matter of fact, in Asia and Europe, there is a perceived increase in the poverty levels due to the globalization of the economies, and hence many citizens are grappling in poverty (Mcgregor, 2008). According to OECD (2011), economic globalization has led to a fluke on the economic condition that has led to the Asian crisis, and increased the global economic trends. Conclusion In conclusion, globalization has facilitated economic growth through facilitation of poverty reduction strategies (Oakes, 2010). It has facilitated and led to the growth of international trade. However, it has its negative impacts such as the compromise of culture that has led to lower standards of living (OECD, 2011). References Akokpari, K. (2001). “Globalisation and the challenges for the African State.” Nordic Journal of African Studies. 10, 188-209. Anderton, B., Brenton, P., & Whalley, J. (2006). “Globalisation and the Labour market: Trade, Technology and Less Skilled Workers in Europe and the United States.” London, Routledge. Ashton, D., Brown, P. and Lauder, H. (2008) ‘Developing a Theory of Skills for Global HR’ (2008) in Sparrow, P.R. (Ed.) Handbook of International HR Research: Integrating People, Process and Context. Oxford: Blackwell. Berger, D. 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