Globalisation and its impact on the world

BUSINESS AND GOVERNMENT

1
Globalisation and its impact on the world
Globalisation has converted world into a village that is more connected where the change in
the business environment in one part of the world gets reflected back in other parts of the
world. There are people that are from different parts of the world that are crossing borders to
leave and work in other parts of the world. There are many factors that support globalisation
and have helped countries in becoming leaders. In the changing business environment, the
most critical impact is placed by the technology that is in use (Beck, 2018). Globalisation has
also boosted firms to make sure that they have strategic partners in other parts of the world.
However there had been questions about the way in which globalisation has unevenly
distributed benefits to every nation as well as to different section inside a nation. It is seen
that the countries that has the control of the factors responsible for the globalisation has taken
the best benefits of the globalisation and those who have failed to achieve so has not been
able to achieve the desired benefits. There have been debates going on about if the
globalisation process should be reversed or there must be new and fairer models for the
globalisation (Zoomers, 2010).
In order to understand that the way in which globalisation has benefitted countries, first it
needs to be understood that it has made countries interdependent on each other which ensures
that the progress of one company will get reflected in other parts of the world. Globalisation
allows firms to deal with the skill management (Pieterse, 2019). This is because the human
resources or talent scarcity in any country is fulfilled by hiring talents from other parts of the
world. This will have direct impact on the way people living in different countries. However
it is seen that in some parts of the world more jobs are created while some parts of the world
there is generation of lesser job roles. This is because of the gap in terms of resources that
globalisation has given and the deficit that it has created in other parts of the world. For
instance brain drain has allowed the countries that is having larger amount of resources to
have best talents (Amin, 2014). This is helping them in their development but the countries
from where the brain drain has become possible generate a talent scarcity.
Globalisation has also benefitted bigger countries to increase their investments in other
countries. This increasing investment makes the other country dependent on the bigger
nations which are again a challenge to the sovereignty of that nation (Nissanke and
Thorbecke, 2010). This is also illustrated in terms of the fact that larger countries have bigger
firms that has higher amount of resources which will not allow the companies from the

2
smaller or lesser developed countries to reach into the new areas and become successful.
Companies also gets extend their arms in the countries that are having better connectivity
with other countries and have developed markets. Due to this job creation also happens in
these nations only which again have an impact on the overall economy. This globalisation has
created an economical gap among all the nations. This is also true in terms of the fact that the
numbers of researches that are going on in some countries are much higher than other
countries. This is making them ahead of the people their competitor nations and again creates
a gap as companies also to move these nations only rather than others (Martens and Raza,
2010).
Globalisation has suppressed some of the cultures of the societies which do not have enough
of the resources. For instance the increment in the globalisation has helped the companies to
make sure that they have an understanding about different cultures but at the same time when
one companies crosses borders they try to bring the same culture in that country from where
they are from. Since most of the bigger companies had been from the western part of the
world. This is major reason why they have made most part of the world to follow western
culture (Bourguignon, 2017). This is done by the companies to sell their products and this is
taking the unique identity of the people in these nations which will have impact on the way
they getting under the control of the powerful nations. If in case of any turmoil happens in
any parts of the world, then there is larger chance that it will affect the smaller nations as
well. For example the economic turmoil in Europe in the year 2008-09 had impact on all the
countries and the most hard-hitten by this.
Globalisation has not only created difference within the society of nations. Rich are getting
rich while poor is getting poorer. This can also be understood in terms of the fact that
globalisation has given the control over the resources. People that are having the control of
the resources are investing it for their benefits and they get returns of it. For instance due to
globalisation some of the people get access to the international markets. They start their
private business and start getting rich and rich every day. Technology is the biggest supporter
of the globalisation which also empowers people to reach to new resources (Ritzer and Dean,
2015). However people who do not have the tools related to the globalisation that can support
them. Interestingly this can also be understood in terms of culture and language. For example
due to westernisation of markets English had become one of the most popular business
communication language and hence the people that are knowing English gets jobs easily and
have more chance of development. This is creating further gaps within the same country.