Essays on Globalization and Market Access, Big Players in the Chinese Market Coursework

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The paper "Globalization and Market Access, Big Players in the Chinese Market" is a perfect example of marketing coursework.   Globalization is a reference to the closer integration of global economies across the economic, technological and cultural dimensions. However, other analysts describe globalization as the global spread of capitalism. In essence, it allows the most powerful nations and their companies to operate across the world with no limitation by national boundaries. Globalization involves a global exchange of knowledge, ideas, labour, products and services. In recent decades, the internet and other communication technologies have accelerated the closer integration of global communities.

In addition advances in transport technology also make it easier for people to travel across the world. Globalization is also associated by two socio-political forces of the 1980s. The collapse of global communism and the fall of the Berlin wall meant that people formally under controlled governments were free to integrate with the rest of the world (Munck, 2002). Furthermore, Third world countries stopped relying on the idea that they could import as little as possible and substitute exports with local alternatives (Abeyratne, 2004).

With the failure of import substitution countries that had suffered from this economic structure started to open up their economies to international trade. It is claimed that globalization is a scheme that increases the opportunity for large multinationals to exploit opportunities in foreign markets. Others see globalization as an imposition of capitalist trade philosophies that favour big multinational business over smaller rivals (Aslam and Azhar, 2013). In contrast, the supporters of globalization contend that closer integration of global economies has led to economic progress for all even for the small companies.

According to Petras and Veltmeyer (2001), since the early 1990s per capita income and manufacturing output has risen in every country. On the other hand, nations who have opened up to trade have become more prosperous and wages have increased in these countries significantly. However, many notable scholars link globalization to the rising power of multinationals which have been the main beneficiaries of globalization as they have been able to obtain cheap labour and gain unprecedented access to markets. This is more so for privileged multinationals from rich countries which get the support of their governments in exploiting opportunities in foreign countries. Globalization is consolidating Market Access for big players only According to Bennett (2003), the two pro-globalization organizations; the World Economic Forum and the World Trade Organization cater for the welfare of big multinational players and enable them to gain greater market access.

Critics of globalization criticize the misconception that globalization is beneficial for global welfare. They argue that political and intentional decisions at the highest echelons of power were made to advance the interest of transnational companies and enable them to establish global supply chains (Bennett (2003).

Multinationals have been able to increase profits by seeking the cheapest sources of labour across the globe. This explains the large scale transfer of manufacturing and other operations by western multinationals to Asian countries. Rising Multinational power According to Aisbett (2007), globalization and free trade have enabled multinationals to destroy small businesses which do not have the capacity to compete. Multinationals have been known to offer substandard products cheaply undercutting local producers and lowering standards of living in the local economy. Worse, multinational base their production where labour is cheapest and export their products to other markets leading to loss of employment in the destination economy.

In countries where production is based, multinationals are known to automate production and offer peanut wages further worsening the unemployment situation. Petras and Veltmeyer (2001) argue that multinationals are aiming to create a one-world economic order where they dominate buying and selling.

References

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