The paper "Globalization and the Bretton Woods Agreement 1944" is a great example of a business coursework. Globalization is a process and a means to attain goals of globalism. It is one of the most influential sources in the determination of the future path of the world. Globalization has many dimensions including political, social, cultural, security, and environmental among others (Boudreaux 1). It is a process that allows greater interaction among countries, persons, and businesses around the world, leading to the development of the global economy. It is manifested by political, social, cultural, and technological integration of individuals, societies, and economies all over the world. According to the Institute on Globalization and Food Systems (67), the process of globalization is brought about by the linearization of international trade, paving way for corporations to pursue larger markets.
This is enhanced by huge advances in infrastructure, communication, and transportation that ultimately results in the convergence of buyer preferences in many products such as consumer goods, industrial products as well as business services. Consequently, globalization has assisted international corporations to create new market opportunities, reduce market costs, and realize higher incomes.
The Institute on Globalization and Food Systems (67) further explains that globalization helps organizations to lower their overall cost structure and to improve the quality or functionality of their products. In addition, it involves the sourcing of goods and services from different locations around the world, which helps international corporations to take advantage of national differences in the cost and quality of factors of production. According to the Institute on Globalization and Food Systems (67), this process is termed as the globalization of production. According to Sapru (503), international corporations are able to participate in global relations under common rules in the recent world.
Several agreements including the World Trade Organization (WTO) 1995, General Agreement on Tariffs and Trade (GATT) 1947 provide the rules for trade contracts, labor relations, environmental care, sanitary, and food safety compliance among others. Generally, these rules reduce international trade and investment barriers by stipulating fair and open trade policies to bind the parties. WTO (July 2008) further points out that amidst globalization, there has been a remarkable improvement in the living standards of people owing to the advancement in information technology.
This has been achieved through international media such as the Internet, World Wide Web, Email, videoconferencing, and company intranets and extranets. According to the source, this has supported international businesses by enhancing the easy, fast, and less costly movement of data and equipment around the world. Also, improvement in technology has enabled transportation to be more efficient and dependable. As such, transportation has been a key factor in the globalization of production and markets (WTO, July 2008). Finally, globalization has played a notable role in the enhancement of national sovereignty within states.
For example, it has greatly helped to spread democracy in the world. However, some sources have termed this phenomenon to be a threat the national sovereignty. According to Pfaller and Lerch (93), there seems to be a shift in control of nations’ economies from the governments of sovereign states to other entities such as nation-states, multinational organizations, and international organizations amidst the process of globalization. Consequently, national sovereignty seems to be undermined in the process.
Boudreaux D. J. Globalization: Yesterday and Today. Greenwood: ABC-CLIO 2008.
Cooper C. L. and Argyris C, The Concise Blackwell Encyclopaedia of Management. Massachusetts Wiley: Blackwell, 1998.
Hofstede, G. Culture’s Consequences: International Differences in Work Related Values. California: Sage Publications, Inc., 1984.
Institute on Globalization and Food Systems. Global Environmental Changes, Globalization and Food Systems. Bonn: IICA Publishers, 2004.
Pfaller, A and Lerch, M. Challenges of globalization: New Trends in International Politics and Society. New Jersey: Transaction Publishers, 2005.
Sapru R. K. Administrative Theories and Management Thought (2nd edition). New Delhi: PHI Learning Pvt. Ltd, India, 2008.
Snowdon, B and Vane H. R, An Encyclopaedia of Macroeconomics. Cheltenham: Edward Elgar Publishing, 2002.
World Trade Organization (WTO), “The WTO launches World Trade Report 2008: Trade in a Globalizing World”, Press 534, OECD, Geneva, Switzerland, July 2008.03 May 2011.