Globalization Is A SIGNIFICANT Driving Force Business Essay

Human conversation is on pace of increasing day by day by using new technology. We first were comfortable interacting at local, then at national and now increasing to international level. It's not only interaction but we are increasing our business at international level. Thus the word used "Globalization".

Globalization is a major driving force for this change the companies in this industry are facing. The amount of success of these companies also differs significantly. The question comes up, hence, when there is a correlation between the magnitude of globalization of the companies, and the success they experience in their individual operations. This review has researched this question.

The globalization process will involve the establishment of monetary, political, communal, and technical links among countries. Globalization is becoming today's need of each and every company. Today's small size industries target is globalization. In the current changing world listed below are the factors that lead to globalization-

The Internet

The Internet has offered to completely eliminate the physical hurdle of distance which used to exist when it comes to transmission of information. People from all over the world communicates instantly with people anywhere else through the bond provided by the web. Governments have very hard time restricting information of their borders because the web doesn't value or recognize international borders. The result is information freely passing throughout the world. Certain governments fear this independence of information and do something to avoid it. China, for example, limits this impact by blocking certain websites within its borders.

Technology:

The most significant tool used in today's world is technology. Its role is vital with reference to business continuity. Technology is the essential force in the modern form of business globalization. Technology has revolutionized the global market and has become critical competitive strategy. It has globalized the entire world, which drive all the countries to more honest expectations. Globalization has resulted in new marketplaces and it is one of the technologies fostered to the new market in this increasing competitive world. Technology has helped us in conquering the major hurdles of globalization and international trade such as trade hurdle, lack of common honest standard, transport cost and hold off in information exchange, thereby changing the market place. Technology has empowered the program experts to work collaboratively above the network with companies from across the world. The scientific improvement has helped a great deal in creation and growth of global market. Multinational Corporations (MNC) is seen as a central actor in globalization. Market segments have become global at an instant pace, as indicated by several sorts of trade expanded to foreign countries. The advancement in coordinator country is often performed by MNC located in one country and due to the technological progress MNC(s) have widened abroad by some varieties of FDI also facilitating the movements of research and development. The analysts have analysed that though the technology has globalized the business but economically well developed countries have been more benefited. While technology has created many opportunities for global systems of tasks it is important to look at the friction in the machine to comprehend the constraints. The resources of friction a wide range of and could bring the machine to its knees. Companies and countries that want to flourish in this era of globalization will seek to mitigate the abuses, while interacting with the friction.

Technology is further divided into the following areas like communication technology, Economic Technology, Transport Technology.

Economic Technology:

Economic globalization is powered ahead by the power of international businessmen, bankers and brokers to execute business with techniques which were never possible prior to modern tools. Trades and investments are made instantly with little regard for international edges, time of day or distance via modern tools. In addition, products which used to require transport, and therefore import and export, such as literature, CDs and films are actually digitally allocated, further leading to business globalization.

Transport Technology:

Improving technology has completely improved the travel industry in the post-war world. Technology advancements lead to travelling that was more easily available, more reliable, faster and even more cost efficient. In the latter 50 percent of the 20th century, it became oftentimes more cheap to send certain products halfway across the world than to manufacture them at home. This plays an essential role in the ongoing globalization craze.

Communications Technology:

Communications of all kinds, even far beyond the web, is another key element of globalization. Not merely has communication throughout the world become possible, it has additionally become affordable. Long distance calls cost significantly less money, fax machines allowed visitors to transmit full documents even before email arrived and cell phones ensure that everyone everywhere can stay in touch. This allows corporations to extend their reach at small cost across international borders, resulting in increased globalization of industry.

The Procedure for Globalization:

Globalization will involve the creation of linkages or interconnections between nations. It really is usually understood as a process in which obstacles (physical, political, economic, ethnic) separating different regions of the globe are reduced or removed, thereby revitalizing exchanges in goods, services, money, and people. Removal of the barriers is named liberalization. As these exchanges increase, nations, and the firms involved, become more and more built-in and interdependent. Globalization promotes mutual reliance between countries.

Globalization can have many advantages of business such as new markets, a wider choice of suppliers for goods and services, lower prices, cheaper locations for investment, and less costly labour. Additionally, it may carry risks because reliance on overseas suppliers and market segments leaves businesses susceptible to events in overseas economies and marketplaces outside their control.

Take the types of Spain and Italy and their dependence on foreign countries for their energy items; they illustrate how important the interlinkages brought about by globalization can be, and what can happen when things go wrong. Because the 1980s, natural gas has become more and more important in Spain as a way to obtain energy. Spain itself produces an insignificant amount of petrol and coal. Because of this it will depend on international suppliers for 99% of its natural gas requirements which keeps growing by 15% per annum. Three quarters of its gas resource comes from three African countries, Algeria, Nigeria, and Libya. These countries are probably unstable both politically and economically. This leaves Spain's ability stations and four million Spanish consumers very susceptible to any instability with their African suppliers (start to see the International Atomic Energy Authority web site www. iaea. org; and Isbel).

Italy would depend on cross-border items of electricity from Switzerland. In 2003 major sections of the Italian market were brought to a standstill.

Let us see the impact of Globalization on in the area of alternative energy and professional energy efficiency.

Globalization of Renewable Energy

In modern times, the entire world has seen a powerful shift of the power landscape in conditions of consumption, which includes greatly increased, and with it, the reliance on energy resources, that are terminal. Within this backdrop, the need to use the existing resources available in the most efficient manner has gained substantive importance, as has the unavoidable necessity to develop perennial energy resources.

There are a large quantity of companies worldwide productive in this area, most of them having began their special activities when this issue of energy efficiency and renewability had not been as popular as it is today. Many of these companies have been small businesses, targeted in their region and specific field of operation. In these varying times, these small businesses have become both in terms of regional coverage of operations, and variety of profile of offerings.

In India, and specifically in Maharashtra, there are several such companies in operation. Not only does a conducive business and development atmosphere lead to start-up and flourishing activities of the entrepreneurs of the companies but also the availability of alternative energy resources (such as geothermal resources) in Maharashtra lead to the presence of such companies in this point out. The existence of industry causes market for industrial energy efficiency alternatives.

The progress has, in most cases, brought along with it not only appealing opportunities, but also large challenges. The proper direction of the business enterprise, careful selection of portfolio elements to ensure success on a continual basis, guaranteeing the option of finance to power the growth, recruiting, orientation retraining and keeping qualified personnel and procedures in previously undiscovered markets are some of the possible troubles faced. The current trends obviously show that businesses dynamic in this field are rapidly increasing market and entrepreneur visibility as the solutions provided by them are eagerly popular by a multitude of customers in a global marketplace.

Globalization is a major driving force because of this change the companies in this industry are facing. The amount of success of the companies also can vary significantly. The question develops, hence, when there is a correlation between the amount of globalization of these companies, and the success they experience in their respected operations. This study has researched this question.

Renewable Energy & Industrial Energy Efficiency

Renewable energy (RE), as stated by the International Energy Organization (IEA), is derived from natural techniques that are replenished constantly. In its various forms, it derives directly from the sun, or from high temperature produced deep within the earth. Included in the meaning is electricity and heating made from solar, breeze, ocean, hydropower, biomass, geothermal resources, and bio-fuels and hydrogen produced from renewable resources.

Energy Efficiency (EE) is the utilization of minimal amount of energy to create or provide an unchanged (or higher) level of output. The work, mechanisms and technology used for obtaining energy efficiency range widely, which range from energy saving lights and improved upon thermal insulation in homes and structures, to highly effective drives and motors and professional waste heat recovery for ability and heat technology in industry. The word is referred to as Industrial Energy Efficiency (IEE) within an industrial framework.

According to the IEA, renewable energy resources and significant opportunities for energy efficiency exist over wide geographical areas, as opposed to other energy resources, which are concentrated in a restricted quantity of countries. Quick deployment of green energy and energy efficiency, and technical diversification of energy resources, would lead to significant energy security and economic benefits

Energy efficiency and green energy are said, in a written report by the American Councils on Renewable Energy (ACORE), and for an Energy-Efficient Overall economy (ACEEE), to be the twin pillars of lasting energy policy

Globalization & Success

Globalization has become a very widely used term in recent ages in a variety of realms. The most common guide is, though, manufactured in conditions of its event and impact in the region of trade and business. Of the many explanations of globalization available in the general public domain, the the one that recognizes it as a universal term for those functions of international integration due to increasing human connection and interchange of worldviews, products, services, capital, ideas, and other areas of business and culture amounts it up properly. The significant development in digital communication, especially owing to the advancement and rise of the internet, and in the transportations systems and infrastructure for both humans and goods are major enablers and motorists of globalization, leading to an increased interdependence of financial activities world-wide.

Globalization of companies, as this analysis has attemptedto take and quantify, has several dimensions, including global existence, source of financing and capital, markets of these end products, components of their value string from suppliers, to research & development and workforce etc. Calculating the amount of the companies' globalization using these dimensions has provided a target basis for making their data and characteristics comparable with one another on a uniform scale.

Success as a term does not require further elaboration. Inside the context of the review, though, success has been seen to have several dimensions, like the viability of a business enterprise, market show, shareholder value, financial performance, strategic direction and worker satisfaction, to mention a few.

Globalization:

At the beginning of the 21st century there is one issue that is discussed more than nearly every other. That concern is called globalization. Hardly a day goes on without globalization being brought up by politicians, broadcasters, and newspaper publishers. It includes made its way in universities, colleges, and universities too. It can even be observed in conversations among everyone in the pub, in outlets or at the job. It seems almost anything that occurs today can be related to or blamed upon globalization.

We all likely have heard the appearance 'It's a tiny world'. People have been stating it for years however now it is true. Just browse the product labels on your clothes - probably they are made in another area of the world. Turn on the computer and the internet will provide you with usage of websites almost anywhere. Look at sport on television and you will see that it includes an internationally audience. So why do we have now live in a little world? The solution lies with superior travel and marketing communications which have made links with other folks and countries surrounding the world so much quicker and easier. These links have increased at such an instant rate there are a new term to describe it. The term is globalization.

But precisely what is globalization? Relatively few people can answer this question. This isn't unusual as even professionals cannot acknowledge what globalization means. Making sense of globalization should be considered a priority for anybody concerned about the future well - being of the people and our world. The term globalization is now so trusted that a typical google search will give you over two million results!

New world or new phrase?

One of the central debates regarding globalization is the utilization of the word itself. Many people, including politicians mainly use this phrase to describe the changing dynamics of the world around us even as we move further in to the 21st hundred years. It is used to make clear changes in world politics, in the global economy, in trade and industry, in crime and terrorism, in environmental dangers and alternatives and also social attitudes and behavior.

Others take a more critical view of globalization and say that it does not describe or clarify a new term whatsoever. To them it is simply a new 'buzz phrase' for patterns and operations, such as colonization, migration and international trade which may have been happening for decades or even decades. By labeling these as globalization they dispute that folks are ignoring the past and the lessons it offers taught us.

"Globalization is what we in the 3rd World have for many decades called colonization. " - Martin Khor, Director of UNDER-DEVELOPED network. Malaysia.

"One can make certain that virtually every one of the 2882 academic papers on globalization written in 1998 include its own description of globalization as would each one of the 589 new literature about them published in that year. " - The Globalization Guide 2002. Australian Apec Research Centre.

Defining the Indefinable?

With a wide variety of views on globalization, defining the term is a very trial. However there are some common features of most definitions, which can be worth considering at an outset.

Interdependency - the idea that people surrounding the world are progressively dependent on the other person. What happens in one place has an effect on people somewhere else.

Interconnection - the idea that we are connected to the people and places which were previously distant and mysterious.

Shrinking of Space - The idea that distances are less important. Remote places are now at your fingertips.

Speeding up of time - the theory that the globe is functioning at a straight faster pace. News, money, ideas, information and people are moving around with increasing speed.

Technology - the idea that technological improvements, such as plane airplane, telephones, the internet, satellite television on pc, etc make globalization possible.

Capital - the theory that it's the stream of money and investments round the world that drives the globalization process.

"Globalization is not new, however the present era has distinctive features. Shrinking space, shrinking time, and disappearing borders are linking peoples' lives deeper, more intensely, more immediately than ever before. " - United Nations Human Development Report. 1999

"Today, every part of the natural and human being world is linked to almost every other. Local decisions have a worldwide impact. " - United Nations Population Account (UNFPA). 'The Condition IN THE World's Human population' 2001

The world we have been in:

Whether we choose to use the term or not, we stay in a world where globalization affects most of us. The clothes we wear, the food we eat, the tv set we watch, the holiday season we take, the automobiles we travel in, the music we pay attention to, and the news we follow bring us into nearer contact with previously faraway people and places. Although some of the encounters may go away unnoticed, anyone surviving in the worlds more developed countries experience some type of global relationship every day. And in the less developed countries of the world, individuals' lives are ever more designed by global forces.

This means that globalization is a truly worldwide process. It straight affects each one of us and more importantly influenced by us itself.

"New transportation, communication, and information technologies intensify competition while allowing businesses to multiply and control international operations more efficiently. " - United Nations Discussion on Trade and Development, World Investment Report, 2001.

A FAST PACED World:

Faster, faster, faster. .

Speed is a central element of globalization. All over the world appears to be moving at an ever faster rate. The very best example of this is actually the activity of information. In 2001 more info could be delivered over a single cable in a second than was sent over the complete internet in a month in 1997. The rate of international marketing communications and information circulation is getting faster each day. Technological developments, specifically in the computer and telecommunications industry are so quick that keeping up can be considered a real problem. Computers bought only a few years ago can appear almost impossibly gradual set alongside the latest available models. People is now able to use their cell phones to access the internet or have information or athletics results delivered to them as the happenings eventually them. None of this was possible simply a few years in the past. Indeed it looks like something from a knowledge fiction movie less than ten years ago.

It is this speedy development which makes globalization possible. But it addittionally boosts serious concerns for individuals who cannot match the pace of change. What happens to those who find themselves overlooked of the technical revolution? This is a concern of great concern to critics of globalization.

Since 1970, the rate of microprocessors has doubled every eighteen months.

On the move:

Some of the greatest technological developments of days gone by have been around in transportation which plays a essential role in globalization. From the horse attracted stagecoach to the train, from the car to the jet air craft human beings have constantly were able to shrink space by minimizing voyage time. Today, jet aircrafts have made international travel easier and more affordable. Business leaders can fly with their factories, associates, or clients in other locations or countries in just a few hours. This has helped production, labour makes, and markets to be increasingly international.

The jet aeroplanes has also induced a boon in travel for personal and leisure purposes. This is most clearly measured by the expansion in international travel and leisure an industry that lots of consider to be the clearest exemplory case of globalization.

In 1950 there have been just 25 million international arrivals (people arriving in countries all around the globe). In 2000 this number rose to 698 million which further increased to a whooping 1 billion in 2010 2010.

Improved ways of transportation allow faster movement of goods across the world. For example Kenyan companies use air freight to travel fresh plants to Europe every night. That is so successful that flowers can take less than 36 time to get from the areas in Kenya to supermarkets in European countries. Without such improvements it could have been impossible for Kenyan flower farms to be competitive in the Western market, as their goods would have perished using more traditional transport such as ships. This is what we call international trade.

Even move by ship has speeded up, thanks to incredible engineering achievements including the Suez Canal (connecting the Indian sea to the Mediterranean, and onwards to the Atlantic), and the Panama Canal (joining the Atlantic and Pacific oceans). The Panama Canal avoids the need for shipping to visit around the end of SOUTH USA keeping a distance as high as 8000 nautical mls. Theses canals reduced voyage time significantly and boosted international trade - another central element of globalization.

"The creation of the water passage across Panama was one of the supreme human achievements ever. The canal is an expression of that old and noble aspire to bridge the divide, to bring people alongside one another" - David McCullough, THE ROAD BETWEEN YOUR Seas, 1977.

The internet:

The internet is often seen as the ultimate mark of globalization. It we can communicate with people on the other side of the world, to do business with distant companies, and share experiences with people we may never meet. It brings the planet into our classes, homes and offices. Is the internet really as global once we think that it is known as the World Wide Web? Nevertheless it has lots of users but it is still less than 1 in 6 of the world's population. Most internet use is targeted in only a few key parts and countries of the world. Around 80% of internet surfers live in the more developed parts that are home to just 14% of the world's population. The vast majority of the world's people play little or no part in this technical revolution. This has led many to say that "the world wide web" is more like a series of hubs with all of those other world simply passed by. In fact this makes the internet highly appropriate as symbolic of globalization because over and over as one notices it is the same places that are included and excluded from other areas of globalization.

"The question we have to learn to ask about new technology is not whether it benefits us, but whom can it profit most? For the electronic revolution has a lot more to offer the largest enterprises on earth than it can to you and me. " - Jerry Mander, Chief executive of International Website on Globalisation

Supporters of globalization claim that marketing communications technology can help poorer, less developed countries to meet up with the more developed.

South Asia is home to 23 percent of the world's populace, but has just 1 percent of its internet surfers.

It will provide them with new opportunities to market their produce, draw in overseas investors, and perhaps also encourage international tourism. Critics are also concerned that the same technology also makes it easier for already wealthy economies for taking benefit of the same opportunities. If this happens then your benefits may only enhance the riches of the already existing and also have less developed areas still finding and catching up.

Money Matters:

Globalization is frequently discussed with regards to the development of international trade. Global trading activities have become enormously over the past few decades because it has become much easier to move capital and goods in one country to another. Companies and traders can make decisions and transfer goods from once country to some other at the touch of a button. The growth of international trade has been equally impressive, with merchandise (raw materials and manufactured goods) trade increasing twenty fold between 1948 and 2000.

"Trade in a far more deregulated environment reduces the income show of the indegent, whereas trade in a far more regulated environment raises the talk about of the indegent. " Christian E. Weller and Adam Hersh, The Long and Less than it: Global Liberalization Poverty And Inequality Economic Insurance policy Institute. Washington DC, USA, 2002

Technological developments such as the internet and improved methods of transfer help make this possible, but there is another essential aspect. This is known as the 'starting - up' of economies to higher trade. This simply opening up means that administration removes barriers to international trade, making it easier for overseas companies to purchase and trade with their economies. The theory behind this so called 'free - trade system' is to permit companies and people to choose more widely where to locate or carry out business. While doing so, they could choose lower cost opportunities and optimize their earnings. These higher income can then be reinvested in further tasks which in turn will lead to even greater benefits and the circuit moves on. Supporters of globalization believe that by motivating economies to start free of charge trade system it'll create more jobs and business lead to greater wealth for those. However opponents of free trade system dispute that job insecurity and poverty have both increased because of free trade and that it's usually the poorest which have been hardest strike.

"Openness to international market pushes and competition is expected to allow expanding countries to alter both the tempo and the design of their involvement in international trade to catch up with commercial countries. " - US Discussion on Trade and Development (UNCTAD) Trade and Development Report, 2002.

International hotspots - a go for few:

Critics of globalization point out that trade and investment are usually limited to a few international hot places. This can be easily noticed in the syndication of assets in trade and industry across the world, utilizing a strategy FDI. Using FDI, we can see that the critics have a good point. Just three areas, the USA, the European Union, and Japan dominate FDI. Between 2008 and 2010, they account for 85% of outgoing investment and 75% of incoming investment. These statistics plainly show that most the worlds FDI takes place in these 3 regions. This tendency has resulted in them being called the 'global triad'. Critics claim that so long as the triad is constantly on the dominate international investment, less developed countries will see it very difficult to?

"The geographical framework of FDI has become far more sophisticated lately, a further indication of increased interconnectedness within the global economy" - Peter Dicken, Global Shift: Transforming the entire world Economy, 1998.

Supporters of globalization point out that, although still dominated by the triad, the broader patterns of FDI are changing. FDI in growing countries has increase 12 times since 2000. However this increase is unevenly distributed and has benefited only a go for few countries. Most notable among these is China. It's been the most favorite destination for FDI beyond your global triad. The primary reason for this is due to its good infrastructure, cheap and abundant labor supply, and low fees. In 2001, expanding countries accounted for 27. 9% of FDI, of which on the third visited china and Hong kong alone. The countries of middle- east and Africa get relatively low FDI accounting a meager 1% show in global FDI.

Several countries have attempted to attract FDI and increase trade by setting up Special Economic Zones or Free Trade Zones. Today there are over 850 EPZ across several countries utilizing 27 million people worldwide. An EPZ can be an area where in which foreign companies are invited to locate their factories and conduct business. In substitution for their investment, the number government removes transfer and export tariffs for several years. The hope is that as companies become proven in the EPZ they will choose to make further opportunities.

In 1998 China had 124 EPZS using around 18 million people - more than in any other country. In Sri Lanka's EPZs trading companies are allowed to operate tax free for a decade.

"For the shareholders, free - trade zones are a sort of corporate team - Med, where the hotel pays for everything, and the guests live free, and where integration with the local culture and current economic climate is kept to a smallest amount. " - Naomi Klein, No Emblem, 2000.

Critics believe that EPZs signify one of the most severe edges of globalization. They see them as parasites, taking what they need from the coordinator economy for their own benefit, giving little or nothing at all in exchange. The EPZ ends up as an enclave, isolated from the rest of the country. Worse, still investors have no commitment- they might quickly relocate their business to a competing EPZ if it offered them greater opportunities. In this manner buyers have been likened to holidaymakers, moving to different resorts as it suits them best. Their ability to look around for the best deals may also force governments to lessen salary or other expectations such as health and safeness or environmental regulations to be able to secure their investment. So why do government authorities go to such measures? They pray that by beginning their economies, creating EPZs and encouraging FDI, they can discuss in the riches and prosperity promised by globalization. But many see this as a phony hope, suggesting that following such a way only allows the rich to become richer and makes the indegent still poorer. Whatever the simple truth is, it is clear that money issues a good deal and that the firms who control this money have a great electricity in a globalised world.

Corporations - The Global Giants:

In a globalised world the true rulers are the corporations. But they are not just typical corporations. They are enormous business enterprises many with sales that are worth more than the economies of whole countries. In 2001, Standard Motors deal was higher than the national income of both Denmark and Norway and almost 25 times greater than the nationwide income of Jamaica. On the broader level the ten most significant global corporations had sales folks $ 1198 billion which is more than the put together GDP of sub - Saharan Africa and South Asia which along are home to one third of the world's society. So how have these organizations become so large and rich?

The key with their success is that they produce and sell their products and services internationally. These are called 'Trans - Country wide Businesses' (TNC) or sometimes Multi National Firms (MNC). This simply means they have operations in more than one country. Because they operate internationally, the effect of TNCs in international trade and fund grew rapidly over the last quarter of the twentieth hundred years. Today they take into account an estimated two - thirds of the worlds exports.

Globalization allows TNCs to locate their functions wherever they can best maximize earnings. If salary are lower in Asia than in USA, then a US founded TNC might want to identify their labor rigorous functions in Asia to lessen its salary costs. This type of decision taking by TNCs has given rise to new economic centers such as Bangalore in India where several Western and American TNCs have set up data control, software development and customer care centers to reap the benefits of lower labor costs.

"Escape just how of big business and the free motions of trade and capital by removing obstacles, and every country will be able to do what it can best. " - New Scientist journal, April 2002

"Business itself is now the most powerful push for change nowadays, richer and faster undoubtedly than most governments. And the facts doing with this electric power? It is using free trade, the most effective tool at its disposal, to tighten its grip on the globe" - Anita Roddick, founder of the Body Shop

A TNC located in Bangalore, with its low labor costs, obviously has a comparative edge over its Californian opponents which can produce the same goods and services for less. The personal savings can be passed on to customers by means of low prices that subsequently will allow the business to gain a talk about of the marketplace and further increase their electric power.

Changing habits of production:

Comparative gain has existed since the very beginning of trade. The UK, for instance, typically experienced a comparative advantage in steel production. But globalization has evolved the entire scenario. For example, reductions of more than two thirds in the expense of sea freight have reduced the value to be located near recycleables. Today it is cheaper to adopt the materials to a location where labor or land and rents cost less. As a result traditional centers of comparative gain have been in decline. This led to a semester in steel creation from 28. 3 million tons in 1970 to 17. 2 million loads in 1995. Over the same period, metal creation in South Korea, one of the new global centers, increased from 0. 4 million to 36. 7 million tones. Similar shifts is seen in other manufacturing and industrial sectors as TNCs take good thing about growing centers of comparative benefit, created by globalization.

TNCs are frequently accused of being 'footloose' for their ability to relocate their businesses as and when it suits them. Critics argue that leaves countries and their work causes extremely vulnerable. However in actuality, many TNCs make investments big money in their global functions and will probably be unwilling to simply close them because of this of short term problems or costs. However TNCs are progressively more beginning to use contractors or sub companies for a lot of their development.

"Since the earliest background of humanity, few of us have been totally personal - sufficient and we have learned to focus so the benefits can increase the quality of life for many. Trade between countries is based on comparative benefit" - John Dorman, 80:20, Development within an unequal world, 2002.

The foot loose nature of TNC has given them the powers to influence government policies and decisions. For example, in Gambia- government restrictions on travel and leisure development were abolished following pressure from TNCs operating in the countries tourism industry. The Gambian administration feared the increased loss of income if tour operators decided to pull out of these country and so changed regulations to keep them happy, despite the interpersonal and environmental risks posed by abnormal development.

Strength and Variety:

Many of the massive TNCs have become powerful organizations by taking products and services they provide. That is normally done by mergers and acquisitions. As TNCs continue steadily to grow in power, they are beginning to lengthen their control into new regions of our lives. For example, several TNCs are today involved in providing basic requirements such as water, electricity, and health services. In the future they could be involved in working institutions, prisons, and even authorities forces.

Winners and Losers: For Global Good

Serious questions are being asked about the great things about globalization for many. It really is true that several TNCs have were able to use globalization to accumulate wealth and electricity however millions of individuals remain barely touching the new global time. It is estimated that half the world's population has never made or received a mobile call. Without access to this very basic technology how do such nations and people really participate the global current economic climate?

Critics of globalization dispute that definately not uniting the planet, globalization is really so that it is more divided. Proof shows that this holds true because in 1960, 20% of the richest world inhabitants manipulated 70% of global wealth and by 2000, this increased to 88%. Within countries too, the difference between abundant and poor have broaden.

"Uneven globalization is brining not only integration, but also fragmentation - dividing neighborhoods, nations, and locations into those that are integrated and the ones that are excluded. " - US Development Program Man Development Statement, 1999

Education is especially important to be able to separate in the present day global economy. To use the internet effectively, the ability to read English is essential as it is the main language of practically 80% of the world's websites. This is even though less than one in ten people on the planet speak British.

The poorest users of the world are often denied a role in the global economy because they can not read, write or speak the language. Wealthier people, on the other hand can generally manage to cover their children to be educated to higher levels, so that it is they who benefit from globalization.

"With this new competitive world, it's the unskilled that fare most severe. They have got become/ effectively commodities, easily replaceable by an ever growing overseas supply". - Noreena Hertz. The Silent Takeover, 2001

Personal Gain:

The most dramatic winners of globalization are a tiny handful of CEOs of the world's major TNCs and buyers who back again them. They have got made incredible personal gains as a result of globalization. Example: Costs Gates, the CEO of Microsoft experienced amassed a personal fortune price US $ 52. 8 billion by 2001 making him the world's richest person, which is equivalent to the combined countrywide income of Kenya, Jamaica, Sudan, Nepal, Ecuador and Georgia. The select few are so prosperous that the richest 200 of them share money greater than that of the poorest 41% of the world's human population. If indeed they were to donate just 1% of these riches, these 200 people could finance primary education for any currently out of university worldwide.

"If you don't have informed people you don't have infrastructure, you don't have social organization, no person pays any attention to you, they never put factories there, they don't sell for you. You are on the world however, not in the global economy. " - Robert Reich, US Labour Secretary.

National Issues:

Just as a lot of people make huge gains therefore of globalization, a large number of others indeed complete nations suffer from or miss out completely. Globally there remain near to 3 billion people i. e. practically half the world's people surviving on significantly less than 2 $ each day. These people have never shared in the prosperity created by globalization. Worse still those who lack the skills to get linked to the global economy tend to be attracted from their home countries to work in the ones that already benefit the most. This phenomenon has been called a 'brain drain'. For poor countries such losses are especially hard to carry, as they may have often spent limited resources educating visitors to reach those benchmarks. In one calendar year Nike paid JORDAN US $ 25 million to market its shoes - the same as 35000 Vietnamese staff were paid to make them.

New links: one advantage of global labor market is that, with residents working overseas, valuable trade and business links can be founded. In 2002, it was estimated that 3% of the world's human population lived outside their country of source. Less developed countries can also reap the benefits of payments that abroad staff send home to their young families. In Haiti, remittances account for 17% of the national Income in 2000, and over 10% in five Latin American and Caribbean countries (LAC). In fact, the LAC region received over us $ 20 billion in remittances in 2000, causeing this to be form of income more important than help payments and equivalent to one third of FDI in the region. As labor becomes significantly international credited to globalization, remittances can be even more important to the economies of less developed and growing countries. In 2000, abroad personnel from Latin America and the Caribbean made over 80 million remittance repayments.

The Global Environment:

People may continue steadily to debate whether culture is truly global or how global the market is, but there exists one concern that is unquestionably global - the environment. We all discuss the same entire world and most of us be based upon its ability to support life. More importantly, we are dependent on one another's potential to manage and protect the surroundings for the benefit of all. This common dependence has led some commentators to make reference to the environment as 'global commons'.

Nature provides clear examples of how environmental occurrences in a single area impact on the global commons. For example, in 1991 the eruption of Support Pinatubo in the Philippines threw very much ash and gas into the atmosphere so it created a cloud around the whole world. This cloud blocked out a few of the suns energy and temporarily reduced average world temps by 0. 5 to 1 1 degree Celsius. The El Nino impact, caused by the occasional warming of the Pacific Ocean, is another exemplory case of an area event having a global impact.

"The greater the economy expands, the faster the depletion of the living systems that will be the way to obtain all real wealth and the more extreme the unequal competition between your abundant and poor for what remains - a competition the indegent invariably lose" - People Centered Development Forum

Thus volcanoes and EL Nino provide strong reminders that people promote the same global environment and we can all be influenced by any changes for the reason that environment. Increasingly, nonetheless it is human activity that rather than natures that is doing the most damage. Scientists have expected that global warming will lead to an increase in extreme weather occasions. The distribution of crazy life could change and farming could be significantly disrupted as the conditions required for growing vegetation are transformed. Extreme flooding in Europe, long period of drought in eastern and southern Africa are proof global warming.

A number of environmentalist believe globalization, with its focus on industry, international trade and travel is going to be a major hazard.

Waking up to Actuality:

Globalization is not very bad reports for the environment. It has made people more aware of the surroundings and problems facing it. Greater advertising coverage, personal travel experiences, and international assistance have brought environmental issues into the homes of people far removed from where they may be actually happening. Folks are slowly beginning to understand that they are really directly linked to and affected by the talk about of the environment at both local and global level.

Governments have also taken environmental issues more seriously lately. New regulations have been used by many countries to try to protect the environment better. And globally, governments are working together to tackle some of the biggest issues such as climate change.

"Globalization is getting a terrible name, but we have shown that global decisions can be the good of the environment. " - Jan Pronk, Chairman of Kyoto local climate negotiations.

Environmentalists are specially concerned about the activities of the large TNCs as it pertains to environment as their countries of origins introduce tighter adjustments to protect the surroundings and relocating their corporation to countries with less restrictions. Which means that globalization is leading to a transfer of air pollution and environmental degradation from the wealthy to the poor countries. The poor are least in a position to cope with the effects of air pollution.

"Only when people are rich enough to supply themselves do they begin to think about the effect with their actions on the entire world around them and on the near future generations" - Bjorn Lomborg, Danish Environmentalist and Writer.

Resisting Globalization:

Since the middle 1990s there has been a increasing tide of concern about globalization and specifically the role of TNCs. This concern is becoming so strong so it has turned into a resistance movement, decided to make governments and TNCs redirect globalization for the good of all. What makes this anti globalization movements special is that it's not composed of global experts but of common individuals. Around the world people are frustrated with just how their lives are dominated by the relatively large companies and lack of ability of government authorities to do anything about any of it. Many folks have lost their homes, jobs as a result of globalization, or viewed their local environment being damaged or polluted. Strongest amidst these concerns is the belief that a successful global culture should function in the pursuits of individuals, rather than business. 75% of People in america believe business has gained too much electric power over many parts of their lives.

"What is the price of representation if our politicians now jump to the instructions of corporation alternatively than those of these known residents. " - Noreena Hertz, The Silent Takeover, 2001.

In many parts of the world people have now began for taking direct action against globalization and its own negative consequences. Critics have been quick to point this out and often accuse the anti - globalization movements of having few ideas for an alternative or fairer system.

"I think the protestors have made an important contribution by making people aware of the flaws of the machine. People on the street had a direct effect on public opinion and organizations which sell to the public responded to that. " - George Soros, Creator of Quantum Group of Funds.

Some of the ideas are giving all nations a fair chance to compete in the global overall economy is one of the main seeks of the anti - globalization motion. Specifically, protestors claim that the crippling debts several countries owe to rich nations should be forgiven so that they can redirect their money into expanding their economies rather than making debt payments. Campaigners are also concerned that staff and makers should be paid reasonably for his or her labour. Another advertising campaign reinforced by those resisting globalization is the thought of localization. This helps bring about a go back to local markets and locally produced goods and services. Followers believe that it could help create strong local economies, build new skills, and reduce environmental impact. Food is used as an example of the potential benefits.

"Anti- globalization has piggy backed on globalization. The resources, infrastructure, and technology of an globalizing world have allowed the anti - globalization activity. " - Adam Harding, Financial Times Papers, UK

The Future of Globalization:

A blended blessing: in the beginning decade of the 21st century, globalization remains one of the world's most pressing debates, offering rise to a huge range of issues, ideas and ideas and elevating far more questions than answers. If globalization is so excellent and has created so much wealth then why do almost a billion people stay static in poverty? If globalization induces efficiency and enterprise, why is technology regarded as harmful to individuals and the surroundings still so trusted? If the split between the rich and the indegent gets wider at both an area and global level, then how can globalization be said to bring benefits to all?

It is scarcely surprising that globalization has become such an elaborate and confusing concern to most people. There are certainly those who have made their minds and also have emerged as strong supporters or critics of globalization however the vast majority of individuals remain doubtful of where they stand and much more certain about the future of globalization.

"There is certainly little signal that the economic great things about the global town will be consistently distributed. The income space between the rich and poor has widened over previous 50 years. The technology difference has yawned wider still. " - Richard Buckley, Understanding global issues, 1998

An inevitable process: many people follow the view of world politicians - that globalization is an inescapable process that is here to stay. They might argue that too many people across the world are actually dependent on international trade and global links for it to all instantly disappear. Many wouldn't normally want to lose such benefits. They like a higher standard of living than ever before, greater opportunities to visit, and even more personal choice in what they eat, drink, wear, and revel in. But if all this is an inescapable consequence of globalization the greater part of the world's population residing in less developed countries do not benefit from the same benefits. On their behalf globalization has meant lack of their livelihood and the destruction of the environment. To make matters worse, many are now finding their traditions, beliefs, even their languages are being substituted by culture of these handling globalization.

A change for the better: far from accepting globalization as an inevitable process, a growing number of men and women believe that something can and really should be done about any of it. They point to the success of initiatives such as reasonable trade activity as examples of how global business can be beneficial for suppliers, business, and consumers equally. The proceeds of fair trade have payed for thousands of children to start attending school and for hundreds of communities to be given improved healthcare facilities.

Ecotourism is another global effort that has bought benefits and resulted in greater security of a few of the planets most endangered surroundings. These are just two examples, however many more exist.

"I remain confident that globalization can benefit human kind as a whole. But clearly, at this time, millions of individuals - maybe even the majority of the people - are being denied of those benefits. They can be poor not because they may have too much globalization, but too little or none in any way" - Kofi Annan, UN Secretary - Standard.

"I do not think it makes any sense to be unreservedly for or against globalization. The question is rather how everybody including the poor, can take advantage of the advantages of globalization without experiencing any of its cons. " - Guy Verhofstadt, Primary Minister of Belgium.

Take it personally:

Despite such positive examples, critics of globalization warn that there are still many reasons to be concerned about the future. One of the biggest concerns however, is the attitude of everyone when it comes to globalization. Too many people believe they can be powerless to make a difference to the way world and economies are run. Actually some of the plenty are so persuaded by this that they don't even choose vote anymore. The reality, campaigners say is very different. Without voters, a politician cannot be listened to and without customers a company has no income. They believe if we all take globalization privately then our actions can make a real difference. Time will tell if they're right.

"Individuals are starting to enquire about the roots of the product, about the suppliers, their working conditions, and their pay. They are also realizing that they can make a difference, that their activities can push business to improve" - Body Shop website.

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Demirbas et al. (2010) determined the probability of the globalization status of a firm changing from year to time and developed the following Transition Matrix

Fig 3??. Changeover Probabilities Across Company Categories

Source- Demirbas et al. (2010), National Institute of Open public Finance and Plan, New Delhi

This study of transition probabilities has three key implications. First, internationalization is relatively 'sticky'; businesses tend not to flit around these categories. Second, D organizations rarely jump directly to DXI. The process of graduating to globalization generally will involve first reaching DX status. Third, the development towards internationalization is not inescapable. Many organizations drop down from DXI to DX and from DX to D.

The observations of their research with respect to globalization were as follows:

Firms in the electricity industry have the lowest proclivity for internationalization.

Firms with less tangible assets are more likely to internationalize.

Firms with higher investments in knowledge will internationalize.

Firms which earn a higher return on collateral appear to be slightly less willing towards internationalization.

Younger firms are more likely to internationalize.

Helpman et al. (2004) anticipate that more fruitful firms export and the most successful companies do outbound FDI.

Forrester Consultancy highlights that in response to the pressures of globalization, businesses must create a networked worldwide business model based on flexible technology architecture. Businesses must adopt the right business models to drive their global change. Companies should quit being vertically integrated and move to an ecosystem of global partners

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