Economics and Globalization Essay Example for Free

Economics and Globalization EssayEveryday you hear it on the red-hots, you read it in the papers, you overhear people talking about itand in every single instance the world globalization seems to have a distinguishable meaning. So, what is globalization?, there were a lot of debate about this issue. At a top political and economic level, globalization is the process of denationalization of food market, political and legal systems. The consequences of this political and economic restructuring on local economies, human eudaimonia and environment are the subject of an open debate among international organizations, governmental institutions and the academic world. (7, www.globalization.com/intro.cfm)What is globalization? Is it the integration of economic, political, and cultural systems across the globle? Or is it Ameri atomic number 50ization and United States potency of world affairs? Is globalization a force of economic growth, prosperity, and democratic freedom? Or is it a force for environmental devastation, exploitation of the developing world, and downsizing of human rights?( www.globalization101.org)Globalization is not a phenomenon it is not just some passing trend. today it is an overarching international system shaping the domestic politics and outside relations of virtually every country, and we need to understand it as such.Globalization is much like fire. Fire itself is neither good or bad. Used properly, it can cook good, sterilize equipment, from iron, and heat our homes. Used carelessly , fire can destroy lives, towns and forests in an instant. As friedman saysglobalization can be fabulously empowering and incredibly coercive it can democratize opportunity and democratize panic. It makes the whales bigger and the minnows stronger. It leaves you behind faster and faster, and it catches up to you faster and faster. While it is homogenizing cultures, it is also change people to part their unique individuality farther and wider.*+(web)Bu t the question here what is whimsical globalization?, globalizationIs driven by the strategic responses of firms as they exploit market opprtunties and adapt to change in their technological and institutional environment, and attempt to steer these changes to their advantage. The O E C D groups the factors shaping globalization into four ecumenic categories, which are inter-linked-firm behavior Strategic , pre-emptive and imitative behavior.Exploitation of competitive advantages use of superior technology , organization, production or marketing.Consolidation of competitive advantages gain nettle to highly skilled people, advanced technological and commercial infrastructure, lower Labour costs, and raw material.Organizational changes adoption of lean production methods and more horizontal informal and external organizational structure.-Technology Related factorsdeclining computing, communication, co-ordination and transport costs.Increasing importance of R D , coupled with rising R D costs. trim back product lives.Shortening of limitation time lags.Rapid growth of knowledge -intensive industries.Increasing customization of both intermediate and finished goods.Increasing importance of customer oriented services.Economic factorsavailableness of key production factorsProductivity differentials.Fluctuations in exchange rates.Differences in the worry cycle.Catching up by lagging economies.(changing paradigms , doubting Thomas Claake and stewaat clegg, p90)).But according to Thomas Friedman in his book Lexus and the Olive tree he explains three major factoes for the spread of globalizationWhich are-the democratization of tecngology. the democratization of finance.-the democratization of information.International involution has been driven by firm strategies based on their technologies and organizational advantages shaped by a number of factors of government policies,technological factors driving expansion admit the rapid growth of knowledge intensive industri es which are foreign investment intensive industries which are foreign investment intensive use intra firm affair intensively andcollaborate externally in development the need to recop growing R D costs find highly trained and skilled workers and spring production more efficiently underpinned by declining communication and transport costs. Increase importance of customer sevice.Macroeconomic factors include market development in different countries and region.Avalibility of key production factors, product differentials, fluctuation in exchange ates, differences in business cycle, catching up by lagging economies.Government policies , significant enamor firm strategies by liberalizing capital investment and trade flows, promptly regional integration and promptly competitiveness. Trade policy of liberalization of trade and invested are enabling factors which have driven global expansion and increased the integration of production and markets.competiton policies(changing paradigms , Thomas Claake and stewaat clegg, p90)).Second, the techmolgy, people have been able to travel the world for the past ergocalciferol years, the difference now is that they are connected immediately.Th internet boom in 1990 made people relaise that business could operate more or less free by geography, 24 a day , 7 days a week , 365 day a year. This new faster moving changing business environment have driven companies of all sizes to organize themselves into smaller more responsive , focused unti.The faster that drives globalization is making behavior is more tribal. tooshie Nasibih, author of global pardox argues that the more we become economically interdependent the more we hold on to what constitute our core basic identity. Implementing a homogenized westbound culture, such countries as indousia , Russia , france have passed laws to preserve their identity. Matters are further complicaty by the shift from trdational nation states to network. The role of diasporas in developin g the economic and political fortunes of galore(postnominal) counties is significant . See the role of the chinessdispopora in driving the economic development of many asian states.Technology is driving a global changing in many other areas, affecting the context of strategic decisions.Laura DSndrea Tyson, dean of London Bsuiness School and a leading economic adviser to Bill Clinton from 1996 to 2000, highlighted the main forces driving globalizationThe basic factor driving is technology .its trite to day but its true ./ the two major development taking place in the world are demographic and interconnectedness. Interconnectedness is about transportation and communication and that driven bytechnolgy. Demographic is actually about biotechnolgyical science. (Kourdi, BUSINESS STRATEGY)Tecnhlogy did not inevent a new business paradigm but it has transformed business opening up a multi trade of ways to add value, increase sale, reduce costs and finagle more efficiently. Understanding th e nature of this transformation is valuable for decision making.An information firestorm rages in most business and how it is manges is crucial to success. A consequenceas of the increase in bank line activity is that information can be leverages to create new sources of value . it is important to combine the power of information and technology qwith common sense onset to management.So tech. And infor, are very importat factor what also effect the economy which also cause globalization. (Kourdi, Business strategy).