Impact of Globalization on Hospitality Industry, Indian Garment and Textile Sector, Inflation in Developing Countries, and Islamic Countries
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This article discusses the impact of globalization on the hospitality industry, Indian garment and textile sector, inflation in developing countries, and Islamic countries. It covers the economic factor, expansion and diversity, human resource management, shopping malls, designer clothing, high competitiveness, and more.
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Running head: International Trade and Enterprise1 International Trade and Enterprise Student Name Institutional Affiliation
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International Trade and Enterprise2 Introduction Over the years, globalization has promoted international trade through integrating companies, countries, and individuals across the world (Mazumder, 2017). Primarily, technology has been the main drive to the rapid growth of globalization. Multinational corporations have grown as a result of globalization thereby increasing competition that has expanded the market. On the other hand, both developed and developing countries have been affected extensively by globalization. The following articles expose the impact of globalization on both industries and countries; A.Globalization in the Hospitality Industry. In this age, the hospitality industry has gone global since its everywhere. For example, Tourism has empowered different countries and locations to grow and prosper due to the capability of attracting outside monies (Frink, 2009). Tourism is considered a major factor that has promoted globalization of the hospitality industry. However, globalization has affected the hospitality industry through different factors. They include; ο·The economic factor. As a result of globalization, expansion of the hospitality industry to additional markets has promoted an increase of market share. Companies such as McDonald's, Starbucks, and Marriot have grown as a result of going global. Consequently, in order to remain competitive, globalization has been the way to go. Besides, hospitality managers have adapted to globalization since it has proved to promote success. According to J. Mark Munoz (2007), hospitality managers are vital in developing products that meet different cultures as a result of globalization. For example, in China, McDonald's has changed its menu in order to reach the new customer base hence attracting more customers. As globalization enables growth, new hospitality companies are emerging every day (Frink, 2009). Expansion and Diversity. Globalization has allowed the expansion of different companies into foreign markets. For example, Hilton, Hyatt, and Marriot have increased their customer base because of globalization. As the saying goes, more businesses, more customer hence more profit. Besides, globalization
International Trade and Enterprise3 has also promoted diversity in the hospitality industry (Frink, 2009). For example, if a company begins operations in India, it will employ an individual of Indian descent to assist conducting the operations. Diversity is favorable since it provides an organization with better comprehension of different cultures. Therefore, due to globalization, profit and growth will be evident in the hospitality industry. ο·Human Resource Management. In every company, the Human Resource department acts as the backbone. Therefore, as hospitality companies expand, the HRM department is forced to do more. For example, qualified individuals must be sort so as to ensure the core aspects of a business are handled expertly. As a result of globalization, companies have learned to promote the welfare of their employees so as to meet goals and objectives (Frink, 2009). Besides, outsourcing of the right skilled personnel has been smooth and effective. In conclusion, a lot of influence due to globalization has widely been accepted both in India and worldwide. B. Impact of Globalization on Indian Garment and Textile Sector. The Indian fashion industry has evolved incessantly from the early 1990s. The clothing- textiles value chain is regarded to aid in industrialization, and itβs also considered the initial step for the developing nations to become globalized (Jain, 2017). The wide-scale impact of globalization promoted continuous imports across different locations in India. Besides, the western buyers are being drawn to the Indian fashion industry. Consequently, Indians have not only adopted the western designs but also the cultural changes and western lifestyles. This has promoted both negative and positive impact on the social and cultural values in India. However, globalization has encouraged employment since the lives of the Indians have been educated and enriched. Globalization has affected the Indian Garment and Textile Sector in different ways. One, we have cropping up of shopping malls. In India, massive shopping malls have gradually increased. Buyers get international shopping experiences in such malls. Two, we have the popularity of designer clothing. Western influence on fashion in India has brought about a new perception of what constitutes to the designer clothing (Jain, 2017). This fusion of style illustrates an adaptation of such influences. Lastly, we have high competitiveness. Due to
International Trade and Enterprise4 globalization, the number of international brands has increased; hence the Indian Fashion industry has gained a competitive advantage in the marketplace. C.The Impact of Globalization on Inflation in Developing Countries Over the decades, the inflation process has undergone a tremendous change in different countries around the globe. Some researchers argue that it has gradually been less responsive to various measures of economic activity since the inflation has become stable. However, as different scholars indicate, globalization has affected the domestic country inflation process. According to Rogoff (2003), globalization has decreased the continuous trend of inflation across different nations globally by reducing the price levels. Besides, more research indicates that foreign measures of economic activity have a considerable effect on the domestic inflation. This indicates that globalization has influenced the output-inflation balance in these nations. The effect of globalization on inflation across developing countries has been ignored over the years by different researchers. However, globalization still has a significant effect on the developing countries as on developed nations (Mazumder, 2017). According to various scholars, increased international trade has resulted into a more substantial impact on developing countries than in the developed countries mainly if the developing nations rely on exports as a means of fueling high levels of national income. Rogoff, Kose, Prasad, and Wei (2004) and Solimano (2011) indicate the relevance of remodeling institutions in developing countries so as to lower the macroeconomic unpredictability that may arise due to increased global economic integration. The significance of a balanced financial system in developing nations is highly advocated since it allows the countries to enjoy the benefits of globalization. D.The Impact of Globalization on Islamic Countries Economic globalization promotes global culture since communities are opened to the culture of the market. Consequently, the global culture exposes societies to western models which may not align properly with the local culture (Habibullah, 2014). Islamic countries fall under these lines. For example, most Islamic countries are dependent on foreign aid and technological infrastructure. This is because there is a lack of independent technical and scientific research. However, globalization has demonstrated that it can reduce poverty.
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International Trade and Enterprise5 North Africa and the Middle East are experiencing a youth bulge since globalization has offered the Islamic nations a window of opportunity. Earlier, due to the lack of required skills and education, the rate of youth unemployment was high, but now this is changing. Since Islamic countries have great potential, globalization has promoted skill-formation and technological capabilities hence supporting effectiveness (Habibullah, 2014). Besides, the Islamic nations rich in oil have diversified the oil reserves thus preserving the oil from depletion.
International Trade and Enterprise6 References Frink, D. (2009).GLOBALIZATION IN THE HOSPITALITY INDUSTRY.Consortium Journal of Hospitality & Tourism,13(2), 79-88. HABIBULLAH, K. (2014). The impact of globalization on Islamic countries: A brief assessment.Crisis, Globalization and Governance: How to Draw Lessons?,99, 1. JAIN, M. (2017).GLOCAL FASHION: IMPACT OF GLOBALIZATION ON INDIAN GARMENT AND TEXTILE SECTOR.CLEARInternational Journal of Research in Commerce & Management,8(9). Mazumder, S. (2017).THE IMPACT OF GLOBALIZATION ON INFLATION IN DEVELOPING COUNTRIES.Journal of Economic Development,42(3). Munoz, J. M. (2005).Executive insights on globalization: Implications for hospitality managers in emerging locations. The International Journal of Contemporary Hospitality Management. Retrieved from, http://www.emeraldinsight.com/Insight/viewContentItem.do? contentType=Article&hdAction=lnkhtml&contentId=1502569 Rogoff, K. (2003), βGlobalization and Global Disinflation,β Proceedings, Federal Reserve Bank of Kansas City. Rogoff, K., M. Kose, E. Prasad, and S. Wei (2004), βEffects on Financial Globalization on Developing Countries: Some Empirical Evidence,β IMF Occasional Papers 220, International Monetary Fund. Solimano, A. (2001), βCan reforming Global Institutions help Developing Countries share more in the Benefits from Globalization?β Policy Research Working Paper Series 2518, The World Bank.