Globalization and Its Impact on the World Economic Development - Assignment Example

Question 1.

Expanding very rapidly across the world, globalisation as a movement, a phenomenon and a force is the fastest process of integrating different world economies, people, governments and companies. It promotes the improvement in the economic opportunities, quality of people’s lives, reduction of poverty, better health facilities and cleaner environment. Goods and services distribution becomes the integral part of countries when stepping into the new globalized world (Akram, et al, 2011). Both the developing and the developed countries accept these favourable conditions, which can be seen in changes in the world trade picture, work of international institutions such as WTO and technological sphere. Thus, prior to the phase of globalisation, the U.S. was the dominant in the world of export, while after the advent of globalisation, such countries as China, South Korea and Japan have challenged the position of the U.S. At the same time, some of the developing countries and African in particular, have experienced negative impacts of globalisation. The position in the international system has been weakened as the countries have been losing race for economic and human development. Thus, specific impact was identifies in the erosion of sovereignty because the country applied the models and strategies developed by the International Monetary Fund, the World Bank and the World Trade Organization (Ibrahim, 2013). Another important aspect that refers to the challenges of globalisation to the developing countries is that these countries should determine how best to be open to the international competition while they had to nurture the development of own production capabilities.

In case if they liberalise too early, then they run the risk of having wiped out domestic industries and thus, be more influenced by the developed countries and foreign competitors (Dahlman, 2016). At the same time, the effects of globalisation such as trade, direct foreign investment and out-migration increase incomes in developing countries.

Question 2.

Going from the Industrial to the Information Age made employers think of the new threat to business, in particular to experience employees’ abuse of the new communication medium. For that purpose, to limit risks, employers are suggested to use innovative monitoring technology to secretly view, record and report about what an employee does on one’s computer during working time. Thus, while 50%-75% of workers have access to computer and 80% to the internet, employers feel forced to monitor the activities of employees (Yerby, 2013). The Society for Human Resource Management (Workplace privacy poll findings, 2005), has presented findings related to the employers’ intentions to check activities of their employees. Thus, HR professional are more likely to agree that tracking activities of employees is the duty of company in preventing risks associated with company’s image and its financial well-being. In addition, monitoring employees’ behaviour helps to protect them from sabotage. Employers agree they have the right to listen to employees’ telephone conversations. They consider that they should also monitor employee e-mail use. Organisations have also the right to monitor employee movement at work through electronic ID cards.

At the same time, Yerby (2013), considers that when such monitoring is used by the employer, it arises a number of concerns, such as whether an employee should be aware of being recorded or monitored. Cox, Goette and Young (2005), state that despite the wide variety of reasons why the company usually wants to screen employee’s email and record telephone conversation, one should realise that privacy laws of individuals should not be broken. At the same time, an organisation can train its employees on proper use of working time and facilities such as internet, email and overall use of computers to ease the surveillance of people. Such training will make employees aware of expectations of the employer and the organisation itself to increase productivity.

Question 3.

It is estimated that in 2013, there have been 63% of all security breaches happened in the U.S. That cost organisations over $5.4 million. Obviously, security breaches affected not only companies, but also lives of millions of consumers, raising the question whether it is safe to conduct activities through internet (Tehan, 2007). At the same time, in preventing data breaches, the consumers obtained free credit monitoring or another type of assistance that mitigated potential losses. Thus, Ablon et al (2016), showed that people were offered assistance 60% of the time, however, those who lost health information recalled receiving such offer 80% of the time. Such preventive measures show how seriously companies take the security of customers’ personal and financial data. While companies offer numerous ways to prevent data breach, the customer should understand that there never will be perfect security and accidental loss can occur.

However, in choosing the appropriate company for conducting activities with, the customer should be aware that it makes data stewardship part of every employees’ role. Such data stewardship focuses on understanding of privacy policies and practices that are not stagnant. An organisation should assume that it collects covered forms that protects consumers’ data. It is also obvious that once the data breach happens, the customer loyalty and trust is broken as well. However, with appropriate communication and awareness how to deal with the problem, an organisation is capable of solving the problem and retain customers, ensuring that further activities will be safe. The company should make all possible so its responsible for data security departments, such as IT to ensure the safety of data storing. It is because many consumers blame tech staff in breaches, despite the complicated work they do. 31% of the interviewed individuals indicated that it is the fault of IT department in becoming hacked and that the customer data was stolen because of its fault (Humphries, 2014).

Question 4.

Psychologists explain creativity as mental process, however, it is much of mix of cultural, social and psychological event. Therefore, a number of personality and contextual factors contribute to the creation of something and the extent to which one explores new things. When having lack or being surrounded by the inappropriate conditions, an individual can experience blocks of creativity. Thus, at the workplace, these blocks can be related to workload pressure and organisational impediment (Matthews, 2007). In academic surrounding, the barriers or blocks to creativity include individual personality, environment, situation, motivation and cognitive development.

These are different from business, academy, economy, art and organisation blocks (Hilal, Husin & Zayed, 2013). Lack of monivation and lack of trust, lack of acceptance and tolerance to criticism, as well as conservatism and authoritarian management are among the main blocks to creativity. There is also a number of psychological blocks to creativity, which get in the way of the creative managers. The most important are self-imposed barriers, patterns, conformity, not challenging the obvious, evaluating too quickly and fear. These blocks appear despite the efforts of an individual to collect and accumulate a great deal of knowledge with facts, associations and rules. However, the role of knowledge is two-fold as it enables individual to think and be involved in the certain process, and the more one knows, the more one can create. However, when it comes to creativity, the knowledge can play negative role as it often impedes from “jumping out of the box”, where the box is created by mental associations and assumptions. Therefore, the one is not capable to create fully as one has certain psychological constraints.

Question 5.

As the economic challenges faced many countries across the world, the notion of greater entrepreneurial activity has become an important goal for many governments. It has become essential to understand what the concept of entrepreneur means and whether the tasks and roles of the entrepreneurs are enough to fulfill the expectations of governments. Thus, personality and characteristics of entrepreneurs, their ability to perceive challenges and failures and adapt to the changeable business environment became the main aspects of examining entrepreneur. During its 2010 Conference on Entrepreneurship, Stanford Graduate School of Business has presented its view on the entrepreneurship.

It took into account opinions of such entrepreneurs as Gurbaksh Chahal, the founder of gWallet, Click Agents and BlueLithium, Carol Sands, the founder of The Angel’s Forum and The Halo Funds, a general partner of Benchmark Capital Matt Cohler and Jorn Lyseggen, the CEO and founder of Meltwater Group (Stanford Graduate School of Business, 2010). For all entrepreneurs, it is considered that a great motivation in becoming independent, self-employed, capable of organising, managing and assuming responsibility for the business are the main factors, which predetermine their involvement in the entrepreneurship (Segal, Borgia & Schoenfeld, 2005). Among the main reasons of the participants of the Conference in becoming entrepreneurship there are situational and environmental factors, previous life experience and the overall organic process of becoming entrepreneur. While entrepreneurship comes with the share of ups and downs there are those things that entrepreneurs find easy and those thing they do not like at all. Thus, the most obvious advantage of being entrepreneur is the opportunity to be own boss, be in charge and make important decisions. Another positive things about the entrepreneurship refer to capability to nurture and bring to life the biggest dream and have freedom to fulfill this dream; it is only entrepreneur’s luxury in picking people appropriate for the certain business. When considering whether it is better to go alone or in the partnership through whole entrepreneurship way, the participants of the Conference have depicted that it depends on the person and the necessity in people. The other important aspect revealed about entrepreneurship is the central characteristics, which the known entrepreneurs consider essential in doing business. Thus, the entrepreneur should be confident and determined in what one wants.

One is able to take calculated risk and influence others. Every entrepreneur should be a little bit crazy about what to do, however, to be rational to avoid self-destruction. One should also be able to embrace rejection as dealing with it gives 80% of problem solving. Here, risk taking is an important factor that develops strong entrepreneurial personality. One should be able to recognise opportunity and have strong social skills in taking risks (Makhbul & Hasun, 2011). However, risk seeking is not appropriate for the entrepreneur as the one is more of change seeker and failure is not an option for most of the entrepreneurs. The participants of the Conference were also asked about such notions as to change the world, build a great company and get rich and how these aspects refer to the activities of entrepreneurs. Thus, money were considered as means to accomplishment of entrepreneurship ideas and goals and primarily the target of the entrepreneur as innovator is not about money but about changing world into better. It is possible through developing something new or displaying the existed product through its improved version when building a company. At the same time, the development of great idea is only one per cent of the business success, while other ninety-nine per cent come from effective execution.