Impact of Globalization on local business

Topics: Globalization, International trade, World Trade Organization Pages: 5 (1414 words) Published: September 24, 2013
Impact of Globalization on Local Business

According through the topic, in my opinion, I think that our world and many societies in our world have change from the past times. The reasons why our world has changed because of we have technology and money to be part of our life. We focus to develop the way to find the money even we know that is unethical, but we still to lie or do everything to get money. It makes effect to our world to be globalization. On the other hand, technology also affects our world to be a globalization because we emphasize to develop and compete between the companies to create a perfect technology to response the unlimited need of customers. They create and invent the technology that easy to use and look like the most moderate in the world, and then they will get the money from the customers. It affect to the customers to use the most moderate technology such as iPhone. Many customers always use smart phone to be a part of life. It affects to people that will not to talk even they are sitting in the same place. They will talk in the application or many things in the smart phone. This reason is my opinion to affect to our world to be globalization.

For the true meaning of a globalization, Globalization is the system of interaction among the countries of the world in order to develop the global economy. Globalization refers to the integration of economics and societies all over the world. Globalization involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure. There are two types of integration—negative and positive. Negative integration is the breaking down of trade barriers or protective barriers such as tariffs and quotas. In the previous chapter, trade protectionism and its policies were discussed. You must remember that the removal of barriers can be beneficial for a country if it allows for products that are important or essential to the economy. For example, by eliminating barriers, the costs of imported raw materials will go down and the supply will increase, making it cheaper to produce the final products for export (like electronics, car parts, and clothes). Positive integration on the other hand aims at standardizing international economic laws and policies. For example, a country which has its own policies on taxation trades with a country with its own set of policies on tariffs. Likewise, these countries have their own policies on tariffs. With positive integration (and the continuing growth of the influence of globalization), these countries will work on having similar or identical policies on tariffs.

Effects of Globalization
According to economists, there are a lot of global events connected with globalization and integration. It is easy to identify the changes brought by globalization. 1. Improvement of International Trade. Because of globalization, the number of countries where products can be sold or purchased has increased dramatically. 2. Technological Progress. Because of the need to compete and be competitive globally, governments have upgraded their level of technology. 3. Increasing Influence of Multinational Companies. A company that has subsidiaries in various countries is called a multinational. Often, the head office is found in the country where the company was established. 4. Power of the WTO, IMF, and WB. According to experts, another effect of globalization is the strengthening power and influence of international institutions such as the World Trade Organization (WTO), International Monetary Fund (IMF), and World Bank (WB). 5. Greater Mobility of Human Resources across Countries. Globalization allows countries to source their manpower in countries with cheap labor. For instance, the manpower shortages in Taiwan, South Korea, and Malaysia provide opportunities for labor exporting countries such as the Philippines to bring their human resources to those...
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