The paper 'Globalization and Its Impacts, Costs and Benefits" is an outstanding example of business coursework. The discussion as to what globalization is unending debate. Several factions concerned with what globalization is have tried to come up with diverse definitions in an attempt to unravel the mystery called globalization. According to Frunza et al (2009), globalization is a process which is made up of cross-border and international flows of trade bringing investment, finance, ideas, information and labor markets into one market place. It is a process that links and hence makes the entire world a mutually dependent whole in issues to do with economics, culture and people.
In other words, globalization connects diverse economies and the cultural life of people across the globe. In relation to socialization, globalization is defined as the intensification of social relations between individuals throughout the world such that distance does not limit the influence happenings miles away affect the local community. For instance, dressing mode in a country miles away is access to the local community via the internet or satellite (Cooper et al, 2008). The reverse is also true where local happenings influence what happens elsewhere.
In 2000, IMF identified four basic aspects that can be used to describe globalization trade and transactions, capital and investment movement, migration and movement of people and lastly, dissemination of knowledge and technology. According to the IMF, change is an integral part of globalization. There has to be a shift in the focus and the thinking process of the global people. Osunyikanmi (2011) on the other hand views globalization as the elimination of communication and technological barriers that results in destruction or restructuring of economic and social-cultural arrangements.
It is a process by which the dominant cultures are strengthened and weak cultures replaced thereby eroding existing local cultures to develop a global culture. Benefits of globalization Globalization has brought substantial benefits to the nation-states that have embraced it around the globe. Some of these benefits include increased opportunities due to the interconnectedness of world economies. New trade partnership between states is being created daily. This has enabled the developing nations to trade on the same scale as the developed nations. Being an extension of regionalism, globalization has led to the diminishing of borders between states and in so doing increased the opportunities for the free flow of trade.
This has been attributed to changes made in policies by the government to encourage global trade (Cooper et al, 2008). Globalization has also seen an increase in the efficiency of the agents of production. With the formation of multinational bodies, for instance, the World Trade Organization, a set of rules that govern trade internationally have been formulated. This has simplified the process of fetching raw materials in other countries as well as exporting produced products.
Additionally, high-tech production equipment has enhanced production thereby increasing the output and reducing wastage of raw materials during the production process. This has seen a drastic improvement in the financial performance of organizations that have taken advantage of every opportunity to reap maximum benefits from increased interconnectedness and the existence of common borders (Phene & Almeida, 2008).
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