The paper "The Advantages and Challenges of Globalisation for European Business Organisations" is a perfect example of a business literature review. Globalization is the process by which societies, regional economies, and cultures have become incorporated. This is in through a global network of trade, transportation, and communication. It is also referred to as economic globalization that is, the integration of national economies into the international economy mainly through capital flows, the spread of technology, trade, foreign direct investment, and migration. Amy (2004, p. 17) argues that Globalization is usually driven by various factors like biological, economic, socio-cultural, technological, and political factors.
It can as well be described as increasing connectivity, integration, and interdependence on a global level with respect to ecological, economic, political, cultural, and technological factors. Globalization is crucial in ensuring border barriers are broken between various countries, governments, communities, and the economy. It involves the blurring of borders between various financial markets. According to Geoffrey (2009), they are various advantages associated with globalization. There is easier and speed transportation of people and goods between various countries. There is also increased free trade between various countries.
According to Bhagwati (2004, p. 89), Globalization increases the economic opportunity and prosperity in the developing world among other advantages. However, some disadvantages are associated with globalization. Such advantages include increased flow of skilled and non-skilled labor from developed nations to developing nations. However, globalization has various disadvantages including causing international tension and trade disputes with no arrest to the process among others. According to the European Commission (2010), European Business Organizations was created between specific interest groups from the European Commission and EU business associations in non-EU business countries.
The main objective of the group is promoting views exchange between host countries and those associations as well as establishing a relationship between the commission services and these organizations. As illustrated by Debra & Colin (2006, p. 134), European Business Organizations are located in Chile, China, Argentina, Armenia, Korea, Japan, Macedonia, India, Ukraine, Vietnam, Russia, Malaysia, USA, Taiwan, Sri Lanka, Singapore, and the Philippines. Advantages of Globalization According to Craft (2000, p. 123), Globalization as a way of increasing economies integration in terms of information, technology, goods, and services benefits adversely the developing countries.
It is a process whereby everyday experience life that was marked by ideas and commodities diffusion is becoming standardized all over the world. Globalization in European Economic countries has been contributed by increasingly sophisticated technologies and services in the transportation and communication sector. Other factors that have contributed include mass migration, movement of people and mass migration, a level of economic activity outgrowing national markets through commercial groupings and industrial combinations that cross national frontiers and international agreements that decrease the business cost in foreign countries.
Sheila (2004, p. 67) argues that globalization ensures that huge potential profits to organizations and countries. However, differing expectations, legal systems, cultural and values, unexpected global effect-and-cause linkages, and living standards have complicated this. Globalization involves increasing the degree of connection between various countries and their economies. According to the Clinton administration, globalization had the potential of harmonizing customs, politics, ushering in prosperity, democracy, and development. Globalization has led to many implications for various national economies. It has led to intensified competition and interdependence in the world market economies.
These reforms in the economy have resulted in various significant benefits or advantages. They are various advantages that are associated with Globalization in European Business Organizations. It has led to increased trade between various nations. According to Buzzle. com (2009), it has also increased liquidity of capital; this has allowed investors in developed nations to invest in the countries that are developing. This is through being permitted by investing on the untapped resources of various developing countries. Globalization also ties global mass media together in the world. This is through the reduction of mass-global space considerably.
It has also allowed increased communication flow that allows the sharing of crucial information between various corporations and individuals all over the world. This helps to keep people informed about international events through various television channels. The news is transmitted around the world immediately it takes place. This has also led to increased ease and speedier transportation of people and goods to various parts of the world. Global communication networks have improved greatly resulting in the easier flow of crucial information to organizations and individuals levels.
This is playing a crucial role in spreading democratic thoughts among countries globally due to globalization. Globalization has led to world economies development facilitation through the free movement of capital (EconomyWatch, 2009). This offers access to foreign investment to various nations such as the USA. Countries are able to invest in one another as well as developing trade with other countries. Businesses are also capable of opening and selling their commodities in newly created foreign markets. The global market is a more free and open even in a faltering economy hence making the world a better place.
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