Impact of Globalization on Economy and Society

The provided document is an analysis of the impact of globalization on economy and society. It discusses various elements that affect people and nations due to globalization, including financial, economic, social, and environmental factors. The document references several books and journals to support its findings and provides a comprehensive overview of the effects of globalization.

Contemporary Business
Issues In a Globalized
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Global environment include the various factors which affect the organization in global
market. It include the geographic area, policies, culture, economic status or technology (Bouskill
and et.al., 2012). Engage with global environment will provide benefits as well it create
difficulties for them. Global environment include the trade laws which influence the business and
create contemporary issues in business which directly affect the production or profitability.
Brightsun Travel company selected for the better understanding of this concepts. It is UK based
organization, founded in 1986. This report include the benefits of globalization and how external
factors will affect the individual as well as the whole business.
MAIN BODY
Globalization is like a distribution of tangible or non tangible things such as products,
technology, information, culture and job across the nation. As per economic term, globalization
is inter dependent where every county connected with the free trade. Globalization include the
various activities which affect the individual as well as company. It helps to increase the living
standard of developing country through providing job opportunity, increase the availability of
products & goods and modernization (Coyle, 2016). On the other hand, globalization can also
destroy the opportunity. So basically globalization of business will positively or negatively affect
the company in term of profitability. Development of global market through free trade is
beneficial for the large corporation which is based on world wide. It will affect the small
organization in term of their development.
Globalization will increase due to various reason such as development in Information and
Communication Technology (ICT). Internet provide the access for the 24/7 where individual or
company can can communicate or share various information with the help of technology. Social
media is the another reason which build interest among the organization. With the help of
various marketing strategy company focus on international customers and increase their reach.
New electric payment system such as internet payment, mobile pay, e-wallet etc. will increase
the global trade with secure payment system. Development of complex financial products such
as derivatives which enable the global credit market to grow (Thomas and Cornuel, 2012).
Their are various benefits include which help the organization to perform well in the
international market. Division of labor will be done due to analysis of their specialist are for the
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competitive advantage. It also provide benefits to the business through building relation between
different market across the nation and consumers to adopt the advantage of economic of scale.
Another benefits is to reduce the monopoly profits and promote the other businesses to done cost
reducing innovation in order to reduce cost of product or increase productivity or profitability.
Another benefit of the globalization is to gain efficiency which improve the per capital income
as well as economic growth (Gamble, 2012). As per OECD growth project, 10% points increase
in trade exposure with 4% rise in income per capital over the period. Globalization help the poor
country to develop their economy and take full advantage of potential opportunity which provide
the global growth in the market.
Globalization also affect me personally, it include various elements which affect the
individual in terms of religion, transport, music, language clothing, culture and food. With the
help of globalization, I can connect or communicate with other who live in the different country.
Connecting with other people or country will increase my knowledge regarding their culture,
value or current trends. With the help of globalization, communication barrier will reduce
because social media sites will help me to regular connect with my friends who live in abroad.
Communication between the two countries also increase which reduce the various barriers and
profit benefits to me and many organization. Globalization also provide me opportunity to get
better education in foreign countries. Before the globalization, it is very difficult to communicate
or connect with other country either it is for business purpose or for education. Cost of studying
in the abroad was too high but after implementing globalization it become beneficial for me who
have wish to study in abroad (Hamilton and Webster, 2018).
Globalization provide various benefits but it also have disadvantage on the same. Such
as barrier for the small or local producers because they does not have sufficient power to expand
their business in global level. Already established organization build their base so other small
companies will not able to sustain for the longer period. Most of the multinational company
suffer from dis-economics of scale due to lack of coordination with their subsidiary company.
Multinational company can operate local monopolies of labor where they push the wage which
will reduce lower then the market fare. As per critics, biggest disadvantage of globalization is
that loss of job in domestic country which cause the market and done some unfair trade
practices. Globalization impact the organizational structure, where change will increase the
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unemployment and also increase the gap among the lower or upper class of people (Tan and
Goh, 2014).
Globalization influence the external factors such as social- culture, political, legal,
ecological, financial or technological. It will personal help me to increase my knowledge
regarding different culture or value. For example: I wanted to study management from Seoul
which provide best education, so I can study from their but it is disadvantage for the home
country because their home students will go abroad for the further study which reduce their
demand in the global country. Above mention external factor affect the Brightsun company
because tourism industry will affect the most. With the help of organization, barriers regarding
tourism or traveling business will reduce and provide benefits to the company. It enhance the
traveling experience of customer in UK. Along with this, it also increase the national income of
that country where customers wanted to travel (Jakobsen and et.al., 2013).
Financial factor influence the organization as well as individual and it include capital,
revenue, foreign direct investment, price of goods and services etc. It is important for the
individual or the firm to analyses the information and then build various strategy which reduce
the risk of financial factor of the organization. Financial factor impact me personally as well
because if cost of traveling in abroad is higher then expected then it is not beneficial for me or
this factor affect me. This factor negatively impact me because I have to pay high amount of
traveling. Brightsun company also affected with financial factor because if cost of their services
is high then trip cost for their customer also high which directly affect the company because it
will reduce the customers that automatically reduce their operations and profitability too.
Financial factor also help the Brightsun company to acquire funds from external sources
and it can be outside of their home country. Due to globalization, local or small business will
reduce because other big brands will capture the market which can negatively affect the home
countries. Tourism sector after globalization get the huge growth which increase the national
income of UK (Jones and Truell, 2012).
After globalization, financial factor help the Brightsun company to operate their business
in the other countries where financial help will be easily arrange by the company through
external sources. Company expand their business in the global market to increase their sale or
profitability. When company required fund for the expansion so they can arrange from
commercial or non commercial institute which provide the financial help to the organization for
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the expansion of their business. Due to globalization, opportunity will increase for the
organization to expand their business and also provide the financial help for then expansion.
Social culture factor affect the Brightsun Travel company and this factor include the
attitude, language, culture, customs etc. It teach me how social culture factor affect the culture,
language and people. For me, after globalization is become easy to study in abroad. For the
Brightsun company they also get the knowledge regarding other countries culture, values,
customs and customers behaviors regarding their taste in traveling. Globalization help the
business to improve their market growth as well as market share. After globalization, tourism
was increased and it's related barriers will reduce which provide the wider opportunity to the
Brightsun company to expand their business globally. After analyzing the other countries
environmental or social culture company build their packages according to demanded place in
their home and outsider country (Jones and George, 2014).
Technological factor also affect the organization in order to increase their productivity or
profitability with the help of change in the technology. Technology help me personally because
it include the internet connection which become most important elements of humans life.
Without internet connection, it is difficult to complete their daily activities and other work.
Along with this, it provide the facilities to enhance their technology which help the business to
improve their production, automation etc. It affect the individual or whole organization as well.
With the help of technology, I can easily connected with others who live far from my
contact and I can communicate with other through social media and other sites. Globalization
will reduce the barriers and technology will connect each others with the help of internet. So
with the help of globalization and technology I can purchase foreign brands in sitting their home
country. Technology help me to increase my knowledge regarding current trends in the market
and it also increase my technical knowledge which affect me positively. Technology also affect
negatively to the human body such as mental or physical health. Due to technology, people
connect with the far one friends but they create distance from those who live beside them.
Nowadays, children are more addicted to the gadget or internet which reduce their interest in
other work or they spend less time with their family. Excessive use gadget or internet will cause
the mentally or physically (Koukolová, Jánoš and Šidlovská, 2013).
After globalization of company, technology affect the every organization either they use
latest technology or not. Brightsun Travel company use online mode for the booking trip and
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provide all the relevant information related to the trip on their websites. Company also provide
the customer service help line number for the query regarding any thing. It will save the time of
customer as well the organization as well. Because nowadays client will compare the price of
their trip from various websites. Is they physically visit the each office then it required lots of
time, money and affords. So with the help of technology, customer can call and ask enough
questions to solve their issues. It will save the time of customer to compare packages without
doing extra efforts. Brightsun company also required to analyses the market on regular basis
which help them to identify current market trends and then change technology according to it.
Use of technology will increase the production as well as profit which further helps in achieving
their organizational goals & objectives (McKendry and Janos, 2015).
Their are various factors which have negative influences of globalization and it impact
the individual, technology, society or the whole organization. Due to misuse of technology,
people will done fraud through internet and terrorist activities also happen which increase
because use of technology also increase but security is not up to the mark which secure the data.
Is is very important for the country as well to build strict regulation regarding these factors
because after globalization it help the organization to grow in the global market as well as it also
increase the chances of fraud in the company where confidential information will be leaked.
Globalization also affect the society in negative term where people love to purchase foreign
brands rather then their home country (Sifianou, 2013). People think that, foreign brands will
provide high class o status between their groups. Basically it become trends to but foreign
products they think that domestic product quality is not good in comparison to others. So,
globalization positively as well as negatively affect the individual, companies or the nation also.
CONCLUSION
From the above essay, it has been concluded that the process of expanding business in
different countries with the help of different promotional and communication strategies is
knowns as Globalisation. It is very essential for responsible manager and countries to increase
globalisation that help to increase economy, national income by promoting tourism industry, FDI
and other investment etc. In order to gain success, it is crucial to consider various elements due
to which people and nation get affected after globalisation such as financial, economical social.
These all factors, have positive and negative impact on the economy of nation and support in
sustainable growth and development.
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REFERENCES
Books & Journals
Bouskill, N. J., and et.al., 2012. Environmental factors determining ammonia‐oxidizing organism
distribution and diversity in marine environments. Environmental microbiology. 14(3).
pp.714-729.
Coyle, D., 2016. Brexit and globalisation. Brexit Beckons: Thinking ahead by leading
economists, pp.23-39.
Gamble, D. N., 2012. Well-being in a globalized world: Does social work know how to make it
happen?. Journal of Social Work Education. 48(4). pp.669-689.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Jakobsen, C., and et.al., 2013. Environmental factors and risk of developing paediatric
inflammatory bowel disease—a population based study 2007–2009. Journal of Crohn's
and Colitis. 7(1). pp.79-88.
Jones, D. N. and Truell, R., 2012. The global agenda for social work and social development: A
place to link together and be effective in a globalized world. International Social Work.
55(4). pp.454-472.
Jones, G. R. and George, J. M., 2014. Essentials of contemporary management. McGraw-Hill
Education.
Koukolová, L., Jánoš, R. and Šidlovská, Ľ., 2013. Manufacturing systems suitable for globalized
market. In Applied Mechanics and Materials (Vol. 282, pp. 230-234). Trans Tech
Publications.
McKendry, C. and Janos, N., 2015. Greening the industrial city: equity, environment, and
economic growth in Seattle and Chicago. International Environmental Agreements:
Politics, Law and Economics. 15(1). pp.45-60.
Sifianou, M., 2013. The impact of globalisation on politeness and impoliteness. Journal of
Pragmatics. 55. pp.86-102.
Tan, Y. S. and Goh, S. K., 2014. International students, academic publications and world
university rankings: the impact of globalisation and responses of a Malaysian public
university. Higher Education. 68(4). pp.489-502.
Thomas, H. and Cornuel, E., 2012. Business schools in transition? Issues of impact, legitimacy,
capabilities and re-invention. Journal of Management Development. 31(4). pp.329-335.
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