The paper "Globalisation and its Effects on Markets and Production" is a perfect example of business coursework. Globalisation is a topic that is widely discussed among scholars, business analysts and the non-professionals alike. Although the exact meaning is contentious, it is widely agreeable that globalisation has brought down the geographical, regional and cultural barriers that existed before thus making the world more integrated. On an economic perspective, globalisation has been defined as a trend that has led to the integration of economic systems throughout the world (Hill, Cronk & Wickramasekera 2011); ‘ the increasing interdependence of markets and production in different countries through trade in goods and services, cross-border flows of capital and exchanges of technology’ (Nunnenkamp, Gundlach & Agarwal 1994, p.
1); or the ‘ international integration of markets in goods, services, and capital’ (Garrett 2000, p. 942). Specifically, it has been argued that globalisation has occurred on two facets, namely markets and production (Hill et al. 2011). Other authors (Dollar 2001; Intriligator 2003) have however defined the concept more widely by including other facets such as culture, homogenisation and labour mobility. In this essay, however, the concept by Hill et al (2011) will be adopted as the working definition. This essay starts with a general introduction of globalisation and its effects on markets and production but narrows down to the globalisation debate.
The essay notes that from whichever angle one looks at the globalisation debate, it appears that there is no clear conviction of whether globalisation is a good or a bad thing. Seeing that globalisation has already rolled out and considering it would be hard to restrict its progress, the essay recommends that global governments together with supranational organisations, the corporate players, and the non-governmental organisations, should collectively develop norms and rules that will minimise the negative effects of globalisation. Globalisation: The effects on markets and production Globalisation effects are everywhere: the food, the cars, the clothes, and the general lifestyle people adopt (Hill et al.
2011). Today, a person in Africa will drive an American-made car; a person in Asia will drink African coffee; while people all over the world will dress in clothes made in Asian factories among other things.
Even work has transcended the geographical boundaries because one may be working for a multinational company, or working for an export company. As Hill et al (2011) note, globalisation of markets occurs when historically separate or distinct national markets merge into one marketplace. Among the factors that have contributed to the merging of markets is the scrapping off of trade barriers, which in turn create opportunities for businesses to expand their markets beyond the national boundaries, and by so doing promote globalisation. Such integration and openness in the market hence lead to what Peng (2009, p.
14) terms as a global business, which fundamentally means that a business can treat ‘ the entire global economy’ as a potential market. As globalisation becomes commonplace, some of the needs, tastes, and preferences of the consumer markets across the world are converging towards similar things (Hill et al. 2011). Examples of how tastes and preferences converge on a global scale include the global demand for Coca-Cola, the international market penetration of multinational corporations such as Starbucks and McDonald’ s and leisure items such as Sony’ s PlayStation.
The convergence of tastes and preferences does not, however, mean that consumers are becoming homogenous everywhere; rather, it means that some brands are able to penetrate the different consumer market segments in the global economy.
Dollar, D 2001, ‘Is globalization good for your health?’, Bulletin of the World Health Organization, vol. 79, no. 9, pp. 827-833, viewed 26 September 2012,
Garrett, G 2000, ‘The causes of globalisation’, Comparative political studies, vol. 33, no. 6/7, pp. 941-991, viewed 26 September, 2012,
Hill, CWL, Cronk, T & Wickramasekera, R 2011, Global Business Today: An Asia-Pacific perspective, 2e, McGraw Hill/Irwin, Sydney.
Intriligator, M D 2003, ‘Globalisation of the world economy: potential benefits and costs and a net assessment’, Milken Institute Policy Brief, no. 33, pp. 1-21, viewed 26 September 2012,
Morrison, J 2008, International Business: Challenges in a changing world, Palgrave Macmillan, Basingstoke, Hampshire.
Nunnenkamp, P, Gundlach, E & Prasad, J 1994, Globalisation of production and markets, Tubingen, Mohr, Germany.
Peng, M W 2009, Global business, South-Western Cengage Learning, Mason, OH.
Rodrick, D 1997, ‘Sense and nonsense in the globalization debate’, Foreign Policy, vol. 18, no. 107 (summer), pp. 19-37, Viewed 26 September 2012,