Globalization and its Impacts

This assignment delves into the multifaceted effects of globalization across diverse domains such as politics, culture, economics, and technology. It explores concepts like the globalization of world politics, belonging in a changing world, sustainable development within a globalized framework, and the impact of economic globalization on specific sectors like Nigeria's industrial sector. The assignment also considers the influence of emerging technologies on airline service delivery and analyzes case studies on technological innovation in the aviation industry and its environmental implications.

CONTEMPORARY BUSINESS
ISSUES IN A GLOBALIZED
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
REFERENCES................................................................................................................................8

ESSAY TOPIC- Analyzing how Globalisation has influenced an individual and a firm or
an Organisation
INTRODUCTION
The increasing pace of globalization and its effect on the environment has been a major
global concern for people. Globalization has a huge influence on the businesses as well as it aids
in enhancing the overall level of global outcome. Globalization should be observed to affect the
allocation of income along with its level. This has also affected the economic growth of the
country. Present report will talk about the effect of globalization in an individual and on its
organization. This report will discuss about the impact of this process on easy Jet which works in
aviation sectors of the transport industry in United Kingdom
MAIN BODY.
Globalization is a process which is used to represent the worldwide interaction of trade,
IT, investment, and values that is performing internationally. Various governmental policies
which is being designed for the development of economies domestically and internationally for
raising the living level of their citizens. With the help of globalization, company can gain
benefits in terms of reduced operating cost, availability of wide range of raw materials and
opportunity from additional markets (Giddens, 2018). For example, a car manufacturing
company can produce them through from various emerging countries and can import the same
so that it can be assemble and selling of final product can be done in that market . This will help
them in earning a good revenue from their business. Through globalization, company is able to
take advantage of low cost production by using the labor of cheap wage country. There are
basically three key factors which plays an important role in the process of globalization, such as,
international finance, multinational production and internationally trading.
These three components can affect this process, for example, there are various policies of
government which can affect the movement of the products for cross-border. They possess the
competency to regulate multi-nationalization of manufacturing process as well. Technology is
considered as key driver of globalization as with the development in technology, exponential
rise in benefits of globalisation is attained. Development in the field of IT and through free flow
of information across borders has led to increase in awareness among people. Technological
advancement aids in boosting the digitalization and supported in implying and accelerating
the transfer of commercial assets among economies (Hirst, Thompson and Bromley, 2015). In
1

transport industry, there are various sectors which is being operated successfully with the help of
globalisation. The sector covers wide aspects including traffic management, vehicle
manufacturing, passenger, supply chain management, retail, transport and transport planning.
Evolution of the airline is an instance that aids in building alliances and global strategies for the
coming future (Baylis, Smith and Owens, 2017).
EasyJet Airline which is a British low-cost carrier operates in both, domestic and
international as well. It usually regulates its business operations at both domestic and
international level. Aviation is analysed as continuous growing sector and it has provided major
contribution towards social, political and economic growth of country. One of the most
important globalization impacts on the aviation industry was of Brexit. The major influence of
globalisation within its various manifestations are completely identified for the international
aviation industry. The effect of Brexit is profound on global aviation company (Onah, 2018).
Positive Impact of Globalization on transport Industry
Due to globalization, there are some positive impacts also on the transport sector
specially on aviation industry, such as,
 Global Market: Globalization helps in improving the global marketing in transport
industry. It has also resulted in introduced and regulation of various international
corporations which are providing aviation services. Due to this, most of the companies in
transport sector is increasing their consumer demands. Due to the increase in global
market it helps in the expansion of the business as well which will give them a trade
internationally.
 Competition: This process has also increased the competitions among companies that
are operating in the same transport sector in order to stay in top positions in industry. It
has given rise to competitive analysis which is very important for the industry to come up
with new and innovative ideas to attract more customers (Steger, 2017).
 Culture: Globalization have positive effect on the culture. However, there is not
particular culture which consists of all better practices. The welcoming of people from
different backgrounds and civilizations has resulted in the formulation of new cultures,
hence it leads to societal growth. Interacting with different people has given huge scope
to increase their knowledge and also help in building a healthy relationship with them
which will improve their business as well.
2

Negative Impact of Globalization on transport Industry
Due to globalization, there are some negative impacts also on the transport sector
specially on aviation industry, such as,
 Environment Damage: In the production range will also increase the utilization of
natural resources which can lead to negative impact. Various alteration within the
environment are now considered as influence to humanity and the future across the world
which are considered as implications of globalisation.
 Fluctuation in Prices: Globalization has led to rise in market competition which leads to
variation in prices. For instance, developed countries like United Kingdom has lead them
in reducing the cost of their service as other country is offering the same services at lower
prices. This has a huge impact on the business as well (Papastergiadis, 2018).
 Job Insecurity: Because of globalization, jobs in different economy become insecure and
also become of temporary nature. This level of impact is mostly witnessed in developed
countries as they usually outsource the work in developing countries. Due to
globalization many companies are shifting their business to new location and country in
order to have cheap labour and can earn a good profit from their business. This has led to
create job insecurity in employees.
There are various external environmental factors which can affect the whole industry due to this
globalization process, for example, social culture, technological, political, financial, ecological,
etc (Onah, 2018).
Social Culture Impact
These factors are driving the sector forward at dangerous level as there is huge increasing
in consumer demand of wide range of transport services which can include, flights, hiring buses
or cabs, etc. In present scenario, the travellers have continuous increasingly short attention spans
and that adults’ clients are more ambiguous to share their experience.
In order to meet the changing demands of their consumers, airlines are required to
incorporate some changes which can help them in attracting their clients (Pieterse, 2015). From
cultural development, determination of new structure of transport service industry is been done.
Due to this, social factors consists of major role with respect to aviation industry. Urbanisation
is another common factor. In this factor increasing consumer demands for flexibility and
visibility. Legislations are also analysed as major drivers of transformation.
3

The exciting development in aviation industry and increasing technological transformation of
transport – which has provided powerful influence upon the automotive and system of
communication and provide a major influence on aviation industry (Henckel and McKibbin,
2017).
It is very important for the transport industry to take care of their customers’ choices and
preferences in order to deliver the best service to them and make them feel satisfied. It plays a
significant role in the enhancement of their business as focusing on social culture impact of their
customers it will become easier for them to run their business successfully despite the impact of
globalization on the transport industry.
Technological Impact
There is a huge role of technology in aviation industry as most of their work is done by
using this. Use of the latest technological tools and techniques have a huge positive impact on
this industry as it will help them in increasing their customer rate. Failing to be tech-savvy can
result in loss of clients. Increased technological advancements can make airlines gain profits
through offering safety and enhanced services. It has provided positive influence on growth and
attraction of customers by providing competencies for business enterprise to develop new e-
booking and online payment facilities to customers.
Air transportation is one of the most technological dependent business. Aviation industry
represents some most advanced pieces of engineering and technology that is being used.
Technological impact of globalization can have a huge impact on transportation as it can affect
their various function. Facility of internet is the greatest advancement which is impacting this
sector as most of their operations are handled by technological use only. For example,
availability of low-cost sensors from different country will make their work easier and advanced
at the same time. Emerging technology has a huge impact on both the sectors of aviation
industry, i.e. cargo and passenger service. These set of new technologies certainly helping
airlines to offer sound facilities and services to its passenger and cargo customers. Also, it
develops new set of opportunities for airlines to enter into new sector, improving their customer
experience and generate new revenue streams for them.
Political Impact
Globalization has a huge impact on the political factors as well. These can vary between
nations as all of them have different rules and regulation which has their own importance.
4

Decisions and legislation formulated by government usually address concerns like the safety,
passengers and various important problems. Aviation industry helps in providing benefits from
both socially and economically. Industrial regulation offers benefits to the participants however,
it can certainly affect the industry negatively. It is proved that regulation or political factors
certainly become a key player in ascertaining the growth of airline industry (Baylis, Smith and
Owens, 2017). Due to globalization, aviation sector has largely effected by deregulation on the
supply side which means that rise of competition in the sector.
These legislations from the perspective of consumers demands provides understanding that
travellers and clients have the right to demand for more amenities and decrease in prices.
One of important globalization impact is that of Brexit process in United Kingdom. Due
to this, so many political issue can be generated which can have a huge impact on the transport
industry. For example, Access of EU’s internal market of air trebling can be engaged if UK joins
(ECAA) in its own right. They have gain benefits in terms of freedom of establishment rules
whereby they can set up business in the economy that possess low labour cost.
They possess the competencies to regulate at international level without any implications of
pricing, frequencies and capabilities.
Financial Impact
Continuously increasing inequality in most overseas nations as well as globalisation is
the considered as important element which is contributed towards this working pattern. Study
provided information that financial expansion at international level is the outcomes of
innovation and growth in technology which has provided series of benefits like expansion of
outlets for selling products and services provided by organisation, positive influence of
appropriate utilization of natural resources, appropriate and low prices wide range of products
by emphasizing on the wide international corporations. However, it can also lead to negative
influence mainly for developing nations which are not developed for these phenomena.
It is evident that there is rise in inequality in most of the economy and globalization is
one factors that supports in developing a global pattern. Due to globalization, it has affected the
aviation industry in lot of terms. Aviation industry has increased the prices of their tickets due to
this process as cost of fuel is also increasing which has impacted their overall business in this
sector (Globalization and its Effects on Financial Markets, 2014). Less consumption of fuel has
also provided a positive implication on the major design goals like payload range influence and
5

landing takes off performance of this is an aircraft. This considered as basis distinction with the
automotive, ships and railways, where weight and volume are extending design to a limited
extent.
This cause the designers of the aircraft to concentrate on the efficiency of fuel, even at
the time the prices of the fuel are likely to be less in the future.
Due to globalization influence on aviation industry, deregulating itself by setting their own
tariffs and charges according to the marketplace, that is apparently greater than the structured
fares. This has affected their customer as well as profitability rate. Airlines companies were
deeply affected by the latest recession and slow economic development due to this globalization
(Croucher, 2018).
Advantages of Globalization in Transport Industry
There is a huge benefit of this as it gives them a chance to explore new market in
different countries which can help them in expanding their business and also provides them
better sourcing option. Some advantages can involve entry to new marketplaces, considerable
savings of cost in the production of materials and labour incomes, an effort into the procedure of
manufacturing process, possibly high quality of products and contending benefits. Another
benefit from globalization is that it gives exposure to do business with other companies as well
that are located in different locations or country (Vasigh and Fleming, 2016). The contending
benefit is enhanced at the time of lesser production costs, lower wages, an internationally
recognized name and a high quality of end products were brought in the marketplace.
Emergence tax free trade and interaction between nations as well as rise in application of
technology, consumer products, education and various other resources are usually analysed as
benefits of international expansion or globalisation.
Dis-advantages of Globalization in Transport Industry
There are so many disadvantages as well due to globalization which can have a huge
impact on transportation industry. One reason of this is that it leads to the exploitation of the
labour. It has a great impact on the environment as well such as waste of oil, fuel, etc.
Developed nations are known to take benefit of underdeveloped nations’ weak supervisory rules
for the protection of environment (Köhler, 2014). One of the most important factors which has
impacted this transport industry is the fall in employment growth rate in country.
6

For instance, business enterprise usually transfers their manufacturing facilities from one
geographical region to another with the low cost labour. This is once the workers within the
previous nations and start comprising better ideas and wages.
This creates a negative impact of the industry to their employees. Some specific drawbacks of
international expansion involve exploitation of underdeveloped nations, ethical issues and
negative influence on local trader and environment. (Henckel and McKibbin, 2017). It is
analysed as critical problem that reduce global poverty. While some other argued that it will
increase financial discrimination across the world.
Above analysis provides clear conclusion that globalization has a huge impact on the
country and on its economic growth as well. The effect of this on transport industry specially on
aviation sector, i.e., easyJet company is explained in this essay. It also explained about the
impact of globalization on various factors, such as, political, technological, financial, etc. which
has a huge importance in the aviation industry in order to increase and enhance their overall
performance in this sector (Wensveen, 2018).
7

REFERENCES
Books and Journals
Baylis, J., Smith, S. and Owens, P. eds., 2017. The globalization of world politics: an
introduction to international relations. Oxford University Press.
Croucher, S., 2018. Globalization and belonging: The politics of identity in a changing world.
Rowman & Littlefield.
Giddens, A., 2018. Globalization. In Sociology of Globalization (pp. 19-26). Routledge.
Henckel, T. and McKibbin, W.J., 2017. The economics of infrastructure in a globalized world:
issues, lessons and future challenges. Journal of Infrastructure, Policy and Development,
1(2), pp.254-272.
Hirst, P., Thompson, G. and Bromley, S., 2015. Globalization in question. John Wiley & Sons.
Köhler, J., 2014. Globalization and sustainable development: Case study on international
transport and sustainable development. The Journal of Environment & Development, 23(1),
pp.66-100.
Onah, F.E., 2018. The Impact of Economic Globalization on Nigeria's Industrial Sector.
Nigerian Journal of Social Sciences, 4(1).
Papastergiadis, N., 2018. The turbulence of migration: Globalization, deterritorialization and
hybridity. John Wiley & Sons.
Pieterse, J.N., 2015. Globalization and culture: Global mélange. Rowman & Littlefield.
Steger, M.B., 2017. Globalization: A very short introduction (Vol. 86). Oxford University Press.
Vasigh, B. and Fleming, K., 2016. Introduction to air transport economics: from theory to
applications. Routledge.
Wensveen, J., 2018. Air transportation: A management perspective. Routledge.
Online
Analysis of Technological Innovation and Environmental Performance Improvement in Aviation
Sector. 2014. [Online]. Available through:
<https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3194117/>
Globalization and its Effects on Financial Markets. 2014. [Online]. Available through:
<http://www.revistadestatistica.ro/suplimente/2012/1/srrs1_2012a30.pdf>
8

The impact of economic, political and social globalization on overweight and obesity in the 56
low and middle income countries. 2015. [Online]. Available through:
<https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4416723/>
The Impact of Emerging Technologies on Airline Service Delivery. 2015. [Online]. Available
through: <https://w3.accelya.com/blog/the-impact-of-emerging-technologies-on-airline-
service-delivery>
9