Debating the Merits of Globalisation: An International Business Report

This report presents a comprehensive analysis of the globalisation debate, examining the arguments for and against international business and MNEs based on a case study. The report explores the problems associated with globalisation and MNEs, including the impact on human rights, the environment, and policy controls, while also highlighting the benefits such as economic growth and technological advancements. The report delves into the roles of state and federal governments in dealing with globalization, emphasizing their responsibilities in protecting citizens from potential negative effects and regulating MNEs. Furthermore, the report discusses the role of technology in supporting company performance in a globalizing business environment and the importance of education in addressing the challenges of globalization and preparing citizens for the global market. The report concludes with a balanced perspective on the multifaceted impacts of globalisation.

DEBATING THE MERITS OF GLOBALISATION 1
Debating the Merits of Globalisation
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Table of Contents
Introduction......................................................................................................................................1
Question 1: Do you think globalization and MNEs activity are creating problems for the world?
What kinds of problems can you identify? What are the unintended consequences of
international business?.....................................................................................................................1
Question 2: Summarize the arguments in favour of globalization made by the business executive.
What is the role of technology in supporting company performance in globalizing business
environment?...................................................................................................................................2
Question 3: What are the roles of state and federal governments in dealing with globalization?
What is government’s role in protecting citizens from the potential negative effects of foreign
MNEs conducting business in your countries? What kind of government actions would you
recommend?.....................................................................................................................................4
Question 4: What is the role of education in (a)Addressing the problems raised in the roundtable;
(b)Creating societies in which people can deal effectively with public policy issues; and
(c)Creating citizens who can compete effectively in the global market place?...............................5
Conclusions......................................................................................................................................6
List of References............................................................................................................................7

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Introduction
Over the centuries, human societies across the old have created close contacts through global
integration. The integration has eased transportation, communication and computer technology.
Multinational corporations produce products that are supplied across the world.
Globalization refers to the international integration of business organizations, view, culture and
other aspects of life and development that generate further economic interdependence of
countries and cultural activities. There are different types of globalization: political economic
and social globalization (Purwowidodo, 2016). As some scholars place globalization as a modern
activity, some scholars trace globalization’s history back in the BCE and late 19 century.
Globalization has been in the rampant use since the 1980s due to the significant effects since
globalization activities affect and affect business activities, natural environment, socio-economic
resources and economies of numerous countries.
These numerous effects have led to the development of international debates to provide
insights into the merits and demerits of globalization (Nederveen, 2012). Generally, globalization
offers different opportunities to business organizations: connectivity, growth, integration while at
the same time offers negative impacts to business organizations entire societies. These negative
effects are categorized into increased risks, less predictability, and over-exploitation of resources.
This paper thus is a report of a globalization debate that comprises of business
executives, government trade officials, activist and experts from the Exchange. During the
debate, each provided their perspectives on the globalization with a major focus on the problems
associated with globalization and MNE, benefits, roles of each stakeholder and impacts of
globalization education in the society.

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Question 1: Do you think globalization and MNEs activity are creating problems for the
world? What kinds of problems can you identify? What are the unintended consequences
of international business?
From the perceptions provided by the debaters, I think globalization and MNE activities
create some problems in the world. From the debate its evidential that globalization affects
human life, environment, and cultural setting negatively.
From the anti-international business representative perspective, globalization tends to ignore the
rights of human and workers across the world. Adoption and implementation of human rights
have recently become challenging and complex in the era of globalization (Steger & Wilson,
2012). As people migrate across the border to look for work, their workplace policies are not
updated and end up suffering. For example workers in sweatshops in Asia, and autoworkers in
Mexico who have poor working conditions and terms. Some national governments have become
overwhelmed with the responsibility of protecting their citizens, who are always on the verge of
crimes and terrorist activities as well as punishing the individual who has committed gross
violations (Xu, 2017). This has led to the development of international bodies such as the United
Nations, international Criminal Units that either support or reject one right.
Secondly, globalization and MNE have a direct impact on the composition of the
environment. Globalization has led to increased production of products in various companies as
well as the consumption of those products from foreign countries. The increased rates of raw
material demand by various companies exert more pressure and stress on the environment
especially the non-renewable natural resources (Mafini, 2015). According to the “race-to-the-
bottom hypothesis” school of thought, the environment suffers most at the expense of

DEBATING THE MERITS OF GLOBALISATION 5
globalization’s gains. Additionally, the increased economic activities in various countries have
led to increased emissions of carbon dioxide, chemical, toxic wastes into the environs.
Thirdly, globalization has posed challenges on policy controls such as monetary policy
and exchanges rates by national governments. For example, when a big international company
becomes the national source of incomes, governments tend to lose control of their monetary
issues.
Fourthly, globalization tends to widen the gap between the rich and the poor.
Globalization focuses more on technology for the production of products. Thus most of the
developing countries tend to have inadequate access to various technologies, thus unable to
improve their products and services provisions (Zhmudska, 2013). With globalization,
companies from the developed countries encroach into the developing economies, providing stiff
competition to the local companies thus leading to collapse poverty rise eventually.
There are numerous unintended consequences of globalization that ranges from stiff
competition among every business entity due to the adoption of the technological production
system. Secondly, high prices of both commodities and raw material as the depletion of the
natural resources continue and lower averages income among the population. Lastly,
globalization is currently redistributing advantages from the west to east. Asian regions such as
China are currently enjoying competitive advantages in various aspects such as manufacturing
and abundant labor supply even though globalization is perceived as western culture (Han,
2016,). This makes America start losing ground as the greatest innovators and developers,
leading to political and social disruption among the potential stakeholders.

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Question 2: Summarize the arguments in favour of globalization made by the business
executive. What is the role of technology in supporting company performance in
globalizing business environment?
Summary of the arguments made by business executives in favor of globalization are:
Globalization leads to better-salaried jobs, increased revenue collection and increase raw
material purchase thus leading to the improved economic standard of both individual and the
state. Multinational enterprises such as Motorola are working so hard in creating a clean
environment and improving the living standard of the societies through corporate social
responsibilities such as contributing to the education of the China population. Through
internationalization, the government will be able to set laws that will protect the environment
from depletion and business enterprises will also recognize the role of becoming a good citizen
as well.
Technology has a great role in company performance in the global market. Technology
has facilitated easy and faster production process of many companies through the adoption of
machines that replace human labor (Hallak, Assaker, O’Connor & Lee, 2018). The machines
have such companies to lower the production cost and improve the quality of products and
services. Consequently, technology has facilitated the transportation system of products from
one place to another (Naway & Rahmat, 2019). For example, through technology, commercial
jets and super-freighters have been developed to aid in carrying load thus reducing the time of
shipping products from one region to another.
Globalization has enabled the supply chain distribution of firms to be easy. Through
developed infrastructure, companies can source their raw materials more easily from different

DEBATING THE MERITS OF GLOBALISATION 7
parts of the world at a lower cost. For example, Boeing Company’s jet 777 is composed of
different parts from 545 different suppliers across the world such as doors and wings are
supplied by Singapore, nose landing gear supplied by Italy, while fuselage supplied by
Japanese(Blanton & Peksen, 2017).
Consequently, globalization has facilitated the management of the supply chain by having
different container tracking devices across the world. This allows the companies to ensure the
security of the products being shipped from the manufacturing point in one region to another.
Numerous products can be transported through the use of drones that ensure that products can be
delivered to customers within the product range with the shortest time possible. Generally,
technology facilitates the sourcing of new market opportunities, souring more raw material and
extensive room for growth.
Technology has improved communication system of most companies through the use of
microprocessors. The global communication system such as satellite and optical fiber and
microprocessor has high power and low cost of computing; thus a large amount of information
can be shared, stored and processed( Beyene, SHI & Wu, 2016). Additionally, the use of the
Internet of Things has enabled some of the company’s operations to be easy. For example, the
communication satellite has facilitated video conferencing of some to the international company
board meetings with the stakeholders across the world.

DEBATING THE MERITS OF GLOBALISATION 8
Question 3: What are the roles of state and federal governments in dealing with
globalization? What is government’s role in protecting citizens from the potential negative
effects of foreign MNEs conducting business in your countries? What kind of government
actions would you recommend?
Government and federal states have significant roles in globalization. First, each federal
states has the power to accepts or reject the entry of any MNEs into their respective states and
regions through providing working license and regulations (Magnusson & Patterson, 2014).
Additionally, the government has a responsibility of creating and laying down infrastructure as
well as facilities that will attract foreign investors. Some of the facilities include adequate
electricity, good road, and fair dispute resolution systems among the business entities and the
host.
Yes, I strongly believe that the Government has a responsibility in protecting its citizens
from the potential negative impacts of foreign MNEs such as prevention of autonomous
development among the citizens. The MNEs always tends to suppress the local companies thus
making them vulnerable leading o high dependency of the citizens to the company. In most of
the developing countries, MNE always prevents genuine autonomous development since the host
companies are unable to participate in the major dynamic sectors of the country. Additionally,
MNE tends to facilitate the increase in income inequality among the host population.
The government has a responsibility of protecting its citizens from being exploited by
MNEs. Numerous MNEs are prominent in developing countries such as South Africa, Kenya and
Uganda which have a large base of both natural and human resources (Sarikoca, 2013). For
example the autoworkers in Mexico make fewer dollars a day, live in horrible conditions and
work so hard to make respective companies perform. Other exploitations are evident in countries

DEBATING THE MERITS OF GLOBALISATION 9
such as Indonesia where companies such as Nike and Rebook exploited human labor(Dash &
Ranjan, 2013,). Their workers lived in deteriorating, leaky and mosquitoes infested homes since
they were making &39 a month for producing products for the company that worth more than
$100 per person. Each government thus needs to put extra law and policies to ensure that the
MNEs recruit and pay the locals within the best terms of employment that will ensure improved
living standards.
The government has the responsibility of regulation MNEs business types to protect its
citizens from being exposed to substandard and harmful products (Singh & Lawrence, 2014,
p.785). Numerous developing countries are exposed to unhealthy and counterfeit products such
as drugs, foods, and electronics that have led to deaths and poor health status. These occur due to
weak government policy regulating the importation of products from other countries and weak
border controls, as well as poor and unfavorable government relations (Yemi, 2016). These
problems are not available in the European countries that have strong government policy on its
citizens unlike in Africa that has weak government policies. Some of the common counterfeit
products are presumed to originate from China that is building close relations with African
countries.
Recommendations
Every state government should ensure that there is better management of all the
regulatory systems governing globalization and MNEs in their respective regions to ensure two-
way benefits.
Every government and federal state should strive to maintain globalization access while
extensively carrying out education, and infrastructure system to provide mutual collaboration
between MNEs and the host.

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Question 4: What is the role of education in (a) Addressing the problems raised in the
roundtable; (b) Creating societies in which people can deal effectively with public policy
issues; and (c) Creating citizens who can compete effectively in the global market place?
Education has a great role in addressing the issues raised during the debate. People can
only benefit from globalization only if they are provided with the required knowledge,
capabilities, rights, and skills to pursue the basic livelihoods. Education forms the foundation of
all driving forces of an economy; thus through education, people can know how to address
various issues that arise among them as a result of globalization (de Bliek & Burger, 2015). For
example, the conference brought together all kinds of experts: Activist, Trade Official, Business
Executives and Government to provide their views. Education helps in creating people that can
compete effectively in the global market. Development of Educationalist facilitates easy and
constructive global debates thus creating informed societies.
Due to the recent globalization that has placed so much pressure on the resources,
education is important in shifting the global demand from the resources. Through education,
people can embrace the usage of better means of production such as green products from the
intensive energy commodities, thus reducing the pressure on natural energy such as coal (spring,
2012). Education thus empowers both the society and environment to a sustainable status.
Through education, different skills are gained that aid sustainable globalization among societies.
Teaching and learning integrate both the climate and environment, scientific literacy that aids in
focusing on individual and sustainable society behaviors.
Through education, individual have become important and productive members of the
society such as becoming a global leader that can talk on behalf of society and address various

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11
issues. Education enlarges individual thinking and allows them deliberate and present respective
views, respect one another views and reach into a conclusion without confrontation and violence
(Garfolo & L’Huillier, 2017).
In the current technological world, global society education is significant as it helps the
society in becoming curious as well as understanding the surrounding environment and
globalization, to recognize opportunities within the societies that are presented by globalization.
An educated society thus can participate in policy-making and implementation on various uses
concerning globalization and activities of the MNEs. Through public policy participation,
consultations and discussion result in a more effective decision-making process that favors all
the stakeholders in the globalized arena (Tsartsidze & Kvirkvelia, 2016). Generally, education is
focused on providing extensive knowledge on the:
a. The collaboration of government and foreign partners
b. Coordination of operations on the global scale
c. Standardization of products, services, and brands
d. Creation and building of global business organizations.
e. People can understand their situations in a more wider context
f. People can develop and implements knowledge on issues affecting their lives
g. Education helps in widening personal development
h. People can fully understand factors contributing to global inequality and address them
properly.

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Conclusions
In conclusion, as much as globalization is seen as global development such as better
salaried jobs, increased revenue collection and increased raw material purchase and improved
economic standard of both individual and the state force, it has numerous negative impacts on
the world. The numerous effects have led to the development of international debates to provide
insights on the merits and demerits of globalization and include: globalization ignores the rights
of human and workers across the world. Adoption and implementation of human rights have
recently become challenging and complex in the era of globalization. As people migrate across
the border to look for work, their workplace policies are not updated and end up suffering.
Secondly, globalization has led to increased production of products in various companies
as well as the consumption of those products from foreign countries. Globalization has posed
challenges on policy controls such as monetary policy and exchanges rates by national
governments. Consequently, there are numerous unintended impacts of globalization such as stiff
competition, low income, high prices of products and shifting of economic balance from west to
east of the world.
Technology plays a major role in facilitating company’s activities to internationalize it.
Technology improves the communication system, the transportation and production rate to
achieve high-quality products to targeted consumers.
The government has a great role in facilitating the development of MNEs through providing
entry and operational environment as well as protecting citizens from the negative impacts of the
MNEs. Some of the negative effects include exploitation of workers, provision of harmful and
substandard products.

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List of References
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and Product Innovation Performnace: The Case Of Ethiopian Manufacturing Firms. The South
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Blanton, R. and Peksen, D. (2017). Dying for Globalization? The Impact of Economic
Globalization on Industrial Accidents. Social Science Quarterly, 98(5), pp.1487-1502.
Dash, R. and Ranjan, K. (2013). MNEs from Emerging Economies are Making Lemonade When
Given Lemons: Evidences from Indian MNEs. Academy of Management Proceedings, 2013(1),
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de Bliek, R. and Burger, M. (2015). Regional Trust, Liabilities of Foreignness and the Location
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Garfolo, B. and L’Huillier, B. (2017). Ethics, Globalization, and the Role Educators
Play. ATHENS JOURNAL OF EDUCATION, 4(3), pp.211-222.
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Purwowidodo, A. (2016). Dialectics Of Educational Technology And Reposition Islamic
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Political Ideology of the Global Justice Movement1. International Studies Quarterly, 56(3),
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Tsartsidze, M. and Kvirkvelia, E. (2016). Role and importance of the education system in the
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Zhmudska, I. (2013). Forming of the competitive advantages for transnational corporations in the
globalization context. Bulletin of Taras Shevchenko National University of Kyiv Economics,
(148), pp.61-63.