The paper 'Globalisation of Business Activities" is a great example of business coursework. Globalization – Liberalisation- was a giant leap in the past two decades. Liberal is a fine word having a number of connotations. According to the Oxford Advanced Learners Dictionary, it stands for a person's open-minded; having, showing broad mind, free from prejudice. Until 1920 it stood for the principles of the Liberal Party favoring moderate democratic reforms in favor of progress and opposed to privilege. American Webster’ s Dictionary has added new dimensions to its 'lacking moral restraint' and 'associated with the principles of political liberalism, .... esp.
economic freedom, greater individual participation in government' and constitutional political and administrative reforms designed to secure these objectives and 'not bound by authoritarianism, orthodoxy, or traditional forms'. Liberalization is a noun from liberal i. e. it covers all the ideas or ideals that the root liberal connotes. 'Progress' and 'economic freedom' are the two norms adopted in 1991 hardly knowing that if the generosity is shown to others the monetary gains accruing to them from it would naturally be surrounded with all the other meanings of the word.
The arrow had only one target-economic progress. But on the way, it hit many interests of the nations. Goyal K A. & P.K. Khicha, “ Globalization of Business: Future Challenges” , Third Concept, An International Journal of Ideas. The four factors, which in my view, have accelerated this process in the past two decades, are the following. Here, we will discuss the impact of globalization on production and marketing and ultimately consumer price inflation in the global market, it can be stated that there is the sole evidence of the factors accelerated and affect in last two decades.
(Dunning, J. H. (1993) The Globalization of Business: the challenge of the 1990s. Routledge; London. ) 1. Import prices As I stated above, globalization sector imports have been growing strongly, but euro area imports from low-cost countries such as India, China, and the new EU Member States (henceforth NMS) have been growing even more rapidly. But there are countries suffering from the aggression of the MNCs. Rising imports from low-cost countries are putting downward pressure on extra-euro area manufacturing import prices. Overall, it is estimated that the increase in import penetration from low-cost countries over this period may have dampened euro area import price inflation by an average of 2.1 percentage points each year. 2.
Wages Turning briefly to recent euro area wage developments, globalization may have been one contributing factor to an extended period of wage moderation within the euro area (for instance, through offshoring or the threat of offshoring), across both manufacturing and service sector. While productivity growth in the euro area has also been moderate over the last decade, real wage growth has also been low. Over 1985-1995 both productivity (output per person) and real wage growth rates averaged around 1.9%.
Over the period 1996-2006, average productivity growth was approximately 1%, with average real wage growth around 0.4%. But, in the euro area, it appears that wage moderation since the setting up of the euro has been a very powerful response to the level of mass unemployment that characterized Europe in the ’ 90s. The wage moderation has been at the root of the remarkable employment success of the euro area with 15 million new net jobs created in nine years, 2 million more than in the U. S.
during the same period.
1. Goyal K A. & P.K.Khicha, “Globalization of Business: Future Challenges”, Third concept, An International Journal of Ideas.
2. Ojha. A.K. , Globalization & Liberalization – prospects of new world order, Third concept- An International Journal of Ideas, August-2002.
3. Diana Farrell, December 2004, Beyond Off shoring: Assess Your Company’s global potential, Harvard Business Review, December-2004
4. Bartlett, Christopher A and Samantha Ghoshal, “Going Global-Lessons from late Movers”, Harward business Review, March- April 2000
5. Child, john and David K. Tse, China’s Transition and its Implications for International Business”, Journal of International Business studies, Volume 32 Number 2001
6. United Nations- UNCTAD, World Investment report  World Bank, World Bank Indicators
7. Amin, S. (1997) Capitalism in the Age of Globalization. Zed Books; London.
8. Casson, M.C. (1988) Recent trends in international business: a new analysis. University of Reading Economics Department Discussion Paper, No. 112.
9. Dunning, J. H. (1993) The Globalization of Business: the challenge of the 1990s. Routledge; London.
10. Frieden, J.A. and D.A. Lake (eds.) (1995) International Political Economy: perspectives on global power and wealth, 3rd edn. Routledge; London.
11. Heckscher, E.F. (1919) The effect of foreign trade on the distribution of income. Translated from the Swedish (1949) in American Economic Association: Readings in the Theory of International Trade (pp.272-300). Blakiston; Philadelphia.
12. Hoogveldt, A. (1997) Globalisation and the Postcolonial World: the new political economy of development. Macmillan; London.
13. Kindleberger, C.P. (1975) The rise of free trade in Western Europe, Journal of Economic History, 35(1). Reprinted as Ch.5 in J.A. Frieden and D.A. Lake (1995, pp.73-89).
14. Mittelman, J.H. (ed.) (1997) Globalization :critical reflections. Lynne Rienner Publishers; Boulder, Colorado.