The Impact of Globalization Essay
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Added on 2020-07-23
The Impact of Globalization Essay
Added on 2020-07-23
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Table of ContentsINTRODUCTION...........................................................................................................................1Main Body...................................................................................................................................1CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONGlobalisation is a worldwide movement towards the trade, economic, communication andalso financial integration. It is like a free movement of products, people and also services acrossall over the world in an integrated way (Amin, 2014). In the present essay, benefits and alsolimitations of globalisation in context of foreign direct investment and international trade areexplained. Foreign Direct Investment put a direct impact on the host country negativity andpositively that will be briefed here. Also, there are four stages of theory of Vernon's Product Lifecycle which are discussed in the given essay. Further, Eclectic Paradigm Framework with itsadvantages is studied. Main Bodya)Globalisation refers to a process through which business or some other companies createan international influence or begin a business at the international level. It is a procedure underwhich the services, people, products and also ideas are spread in all over the world. Under this,there is an integration as well as interaction among the different cultures, economies and alsogovernment of the international countries. In the globalisation includes services, goods, data,capital resources and also technology. In this, host country sells its products outside theboundaries. It is helpful in enhancing the development and profit level of business. Globalisationhelps in enabling the investment as well as financial markets in order to operate businessinternationally. With the help of this, relationship among the two countries will be good andhealthy. But the globalisation does not consists the unhindered labour movement. Globalisation is helpful in developing nations as well as helps in making all countriesconnected with each other. Foreign Direct Investment affects the economic development and itcan develop a positive impact on wealthy countries. It is helpful in enhancing the FDI, trade inorder to developing the high rates. International trade has some necessary share in the GrossDevelopment Product (GDP) in various countries. There are many different business firms fromthe various countries are looking for the effective and new development opportunities outside thehome countries. From an international trade, an economy of ICT and Transport sectors can bestimulated (Baylis, Owens and Smith, 2017). It is necessary for the business and helpful inimproving business, minimising dependency of other markets, increasing development, etc.1
Globalisation is an interdependence among those countries which are arising from an integrationof various aspects of a country economy. There are some advantages and limitations of globalisation in context offoreign directinvestment and international trade. There are many benefits of globalisation like it is helpful onincreasing the long run average development rate of an economy of specific country. Am otheradvantage of globalisation is that it enhances the development and also productivity of labour.Globalisation helps in eliminating an inefficiency in the manufacturing system (Bos,Economidou and Sanders, 2013). With the help of globalisation, competitive markets minimizethe incentivise and profit level of businesses. It helps in the free movement of the labour orworkers among the countries. It leads to be enhancing the free trade among the different nationsand the products or services are provided from one country to another for the purpose of makingthe relationship better. Globalisation helps in providing better employment related opportunitiesfor people and also offer better quality of goods and services in the competitive areas. In thispresent time period, an international trade increasing day by day. It is helpful in developing thepositive impact on the development of Transnational Company.There are some disadvantages of globalisation are it can be lead to enhance a livelihoodof an economic disruptions of single economy which impacting on all nations. The otherdisadvantage of this globalisation is that from this, inequalities in the wealth and also income ofpeople will be increased. Globalisation gives its contribution towards enhancing gap among thepoor as well as rich people. From this, an environment will be suffered badly and from this thetraffic will be enhanced among the countries. It will exploited the natural resources on earth.Those countries which are democratic, there is some difficulty in executing a globalisation. Inthe industrialized countries, globalisation caused an unemployment because the companies movetowards their factories to that place where the labours are meet in cheap prices.The motivation behind internationalise business, there are many factors like for doing thebusiness at an international level, the products and services of company will be increased.International business is necessary to expand the business at a large scale. It provides the amongterm benefit to the business and from this it will be saturated at the same place (Breznitz andMurphree, 2011). The main motivation behind doing the business at international level is thatwith help of this, relationship among two countries will be healthy and also harmonious. Fordoing trade at the international level, there are many benefits which are arise from this lime from2
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