Importance of Globalization

Running head: IMPORTANCE OF GLOBALIZATION
IMPORTANCE OF GLOBALIZATION
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1IMPORTANCE OF GLOBALIZATION
Globalization is the process of integration and interaction between the companies, people
and governments of the whole world. Globalization of the business organization have increased
and grown due to the advancement of communication technology and transportation. Increased
globalization has also seen a substantial growth in the ideas, culture and international trade.
Globalization has helped in reducing the international boundaries and created many opportunities
for the new entrepreneurs and organization (Giddens, 2018).
Globalization has many advantaged from the viewpoint of the organization as well as for
the common people. Globalization has increased the employment opportunities as the companies
are operating their businesses in various countries. This has also helped the unemployed people
to get better jobs without moving to other countries in search of jobs. Companies like Google,
Microsoft, BMW etc. have globalized their business operation and helped them in getting
effective employees (Steger, 2017). Increase in the free trade has gathered the attention of the
investors to invest their money in developing nations. Big companies have the opportunity to
operate in the developing nations. In 2000s, European and Japanese companies like Siemens and
Kawasaki started the producing bullet trains in China. This helped Chinese companies like China
South Locomotive & Rolling Stock Corporation to gain knowledge about the production process
and now they have started producing high-speed locomotives on their own (Li-Hua, 2014).
Globalization has increased business opportunities this has also affected in the rise in the
competition in the market. As a result, people have many options in front of them, to retain the
customer’s base the organizations have increased the quality of goods and services they provide.
This has also resulted in the fair prices of the goods and services. Globalization also helped
developing countries like India where the resources are available in abundance but the
employment opportunities were less (Shahbaz et al., 2016).