The paper "Benefits and Costs of Globalisation " is an outstanding example of business coursework. With the increasing technologies in communication and transport, costs of communication and movement of people and goods around the world have declined significantly. This means that markets across the world have been brought closer and so have people who are now able to work and do business across different countries in the world. Ideas can be developed and shared seamlessly by people in different organisations across the world. Companies can outsource their operations to markets that they deem to offer the most competitive costs of labour.
These transformations constitute what is commonly referred to as globalisation although there is no single universally accepted definition of the term. To understand the gist of the word ‘ globalisation’ , this paper will look at different definitions of the term from different contexts. The paper will then discuss the benefits and costs of globalisation and analyse the key challenges posed by the phenomenon for national governments. Finally, the paper discusses how globalisation has impacted particular organisations and will use a case study of the giant multinational retailer Walmart. Meaning of globalisation As mentioned in the introduction, there is no single universally accepted definition of the term ‘ globalisation’ .
Many definitions are coined based on the context in which one looks at the term. For instance, it could be about the integration of markets, the coming together of people, societies and nations, advances in technology and improvements in communications and transport, increases in the flow of ideas and capital across the globe and so forth. Even institutions within the United Nations system have different definitions of globalisation.
For example, the United Nations Educational, Scientific and Cultural Organization (UNESCO) defines globalisation as a multidimensional process that is characterised by the acceptance of a set of economic rules for the whole world designed to maximise productivity and profits; technological innovation and organisational change premised on flexibilisation and adaptability; reduction of the welfare state, privatisation of social amenities; adaptability of labour relations and frailer trade unions; effective transfer to multinational organisations of the control of national economic policy instruments; and dissemination of common cultural values, as well as the re-emergence of nationalism, social movements and cultural conflict (Urzua, 2000, cited by UNESCO, 2012).
On the other hand, the World Bank defines globalisation as the increasing interdependence of countries due to the growing integration of trade, people, finance, and ideas in one global market (Subbotina & Sheram, 2000, 66). According to the World Bank, this integration is mainly caused by international trade and cross-border investment flows. It is therefore evident that the reason why there is no single universal definition of globalisation is because of the multiplicity of issues involved.
Al-Rodhan (2006, p. 3) notes that globalisation encompasses economic integration; the transfer of policies across countries; the dissemination of knowledge; the reproduction, relations and discourses of power; and cultural stability. Similarly, in 1997 the European Commission defined globalisation as the process by which production and markets in different countries become increasingly interdependent because of the dynamics of trade in services and goods and flows in technology and capital (Held, 2000, p. 92). Perhaps the simplest definition which touches on all the issues involved in globalisation is that which is given by (Stiglitz, 2002) that globalisation is the closer integration of the people and countries of the world which has been caused by the huge decrease in costs of communication and transportation, and the removal of artificial obstacles to the flows of services, goods, knowledge, capital and to a lesser degree person across borders (Straw & Glennie, 2012, p.
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