The paper "Impact of Globalization on Organizational Stakeholders" is an outstanding example of management coursework. Cooperation among countries is facilitated by factors such as the need to trade, invest as well as to have a general capital flow, improvements in information and technology and also the alignment towards the international standards. Khanna and Palepu (2004) define globalization as the process of dynamic cultural, economic and institutional interaction and assimilation among the countries of the world. It is simply the processes of international interaction. It affects how employees, customers, companies and governments of different nations of the world relate together in trade and investments.
Today, globalization is the most common and driving force in the world's industry today. It has a great influence on several global stakeholders. It is influencing all actors in the world’ s economy as well as the social partners. Globalization has been seen to have various influences on different stakeholders (Mathews & Thakkar, 2012). The aim of this essay was to show the positive and negative effects of globalization on some of the stakeholders, specifically workers, business organizations and customers. Impacts of Globalization on workers Globalization means the process of relations and amalgamation among the citizens, companies and governments of diverse nations in the world (Ekins & Voituriez, 2012).
Globalization has greatly influenced workers in the world. The trade liberalization, as well as the lowering of the transportation costs, has relatively increased business across the world. It was initially used as a scholarly term in 1967 to explain essential aspects that had happened in the world (Markovic, 2012). This is a development that is driven by global trade and investments, and it is aided by advancements in information technology.
Globalization, however, is not a new thing. For the past several years citizens of various nations have been trading goods among each other over great distances (Fraser, 2007). Corporations also have from a long-time engaged in business in other countries outside their borders. Hitt et al. (2016) argue that the knowledge and skills of workers affect globalization of work especially on income sharing is an essential policy aspect in studying the effects of globalization to workers. The process of globalization can determine the workers who occupy the factories and those that dwell in the streets.
The effects of free trade and investments on the workers can be very distinct among several groups. Some scholars have developed theoretical structures that can be used to study the diverse effects that come with globalization and realize the fact that not only firms alone but workers are also influenced (Mathews & Thakkar, 2012). Akteruzzaman (2006) observes that a number of researchers have shown that the labor market frictions influences the wages as well as the sharing of workers transversely among firms following the trade liberalization.
The impacts on income distribution thus describe the reason why the majority of the groups strongly support or contest the aspect of free trade (Jensen & Sandstrom, 2014). As a result, developing countries will increase their capacity regarding trading and investment opportunities due to the alleviation of the price disparities as a result of both labor and capital markets as contained in (Anderson & Edward, 1998). Globalization also impacts on employment creation in the developed and developing countries (Jensen & Sandstrom, 2014).
This, however, will rely on the volume and kind of trade and investment opportunities, the kind of technology used as well as the ability of the local country to employ the new technology in addition to adapting to its needs. Globalization, on the other hand, has many negative effects on workers both in developed and developing countries (Wetherly & Otter, 2011). For example, large-scale technological advancements that come along with this occurrence results in a reduction in demand for unskilled labor has evidenced by the fact that foreign direct investment requires skilled labor.
Furthermore, the old nature of work might be rendered useless due to technological advancements (Khanna & Palepu, 2004). Globalization affects negatively mostly workers from developing countries as it increases unemployment because it is difficult for them to adapt to new technology.
Akteruzzaman, M. D. (2006) Globalization: issues and challenges for trade union movement. John Wiley and Sons.
Anderson, D. & Edward, T. (1998) Globalization and Wage inequalities:1870-1970. OUP.
Ekins, P. & Voituriez, T. (2012) Trade, Globalization and Sustainability Impact Assessment: A Critical Look at Methods and Outcomes, Routledge.
Fraser, K. (2007) Dictionary of Globalization. UK: Polity Press.
Hitt, M. Ireland, D.R. & Hoskisson, R. (2016) Strategic Management: Concepts and Cases: Competitiveness and globalization, Cengage Learning.
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Khanna, T. & Palepu, K. (2004) Globalization and convergence in corporate governance: evidence from Infosys and the Indian software industry. Journal of International Business studies, Vol. 34, No. 3, pp. 484-507.
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Mathews, L.C. & Thakkar, B.S. (2012) The impact of globalization on cross-cultural communication, Walden University.
Wetherly, P. & Otter, D. (2011) The Business environment: Themes and Issues, Oxford University Press.