The paper 'The Advantages and Challenges of Globalization ' is a great example of a Business Case Study. The 21st century has embraced the most beneficial yet controversial issue that mankind would have ever wished: globalization. The advantages and challenges of globalization are widely known, making it one of the most debatable topics currently. This paper will examine the advantages as well as challenges of globalization in the context of the European Business Organizations in the 21st century. Many researchers have examined the advantages and issues facing globalization all-over the world, however, there is a very limited choice of literature that strictly looks at the context of European business environment or the aspects that make a distinction between business organizations in Europe and in the European market from other regions (Ranger, 2007). This paper seeks to particularly focus on the European business context because of the aforementioned limited research on this area and, more importantly, the fact that European business organizations have demonstrated to the rest of the world how economic, political and social factors can fundamentally affect business strategies and the environment.
The gradual transformation that Central and Eastern Europe has undergone and later on the growth of the European Union from 15 states to 25 are key examples of this. Besides, the European Union was recently ranked as the biggest goods trader in the world, according to the analysis by Eurostat (Eurostat, 2010). This is demonstrated in the Appendix. Advantages Trade and development The advancement in trade processes is arguably the most significant benefit that globalization has had on European business organizations. At the moment, the European Union is the biggest trader in the world and accounts for up to 20 percent of the world imports and exports.
(UNCTAD, 2010) The liberalization of trade has enabled the most efficient European Union firms to have a fair competition with its competitors in other countries. Because of the departure of trade barriers in the EU, the EU had prospered in its business processes and is now more committed to global liberalization. As countries in the European Union removed tariffs on trade among them, they also brought together tariffs on goods imported from other regions.
The result is that other firms pay the same tariff whether their products enter the European Union through the ports of Hamburg or Genoa. The effect of this is, for example, products from Japan which pay import duty on arrival in Belgium can be shipped to Germany or such a country and sold in the same way as Belgium products, without being charged any further duty. (Amy, 2004) The trade policy of the EU is closely associated with its growth policy, whereby it has granted cut-rate or duty-free access to its market for the majority of the imports from budding countries under its comprehensive system of preferences.
This has made it even extend to the 49 poorest countries in the world, all of whose exports, except arms, enter the EU market duty-free. (Johnson & Turner, 2006) Importantly, the EU has created a new trade and development strategy using its 78 partners from the Africa-Pacific-Caribbean (ACP) group; the strategy’ s objective is to integrate the partners into the world economy. Further, the EU also has a trade accord with South Africa that will ensure free trade, and it is in the process of settling for a free trade agreement with the members of the Gulf Cooperation Council (GCC), namely Kuwait, Oman, Bahrain, Saudi Arabia, Qatar, and the United Arab Emirates.
It is however worth noting that the EU does not have specific trade agreements with major partners in the developed regions such as Japan or the United States. (Shirley, 2004)
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