Globalization: Trends and Perspectives

Article excerpt

INTRODUCTION

Due to globalization, the business world has been completely transformed over the past thirty years. The economy is now more international with shares being traded between citizens of different countries on a daily basis. With the internationalization of industry and the economy there is a need for increased regulation from the governments of all countries involved. It is important to understand globalization to be a good business person in the world today. First, it is important to have a good understanding of the definition of globalization from several different business sources. Also, it is necessary to review the history of globalization so that it can be understood how we got to where we are today. Furthermore, there are several different trends that are occurring in the business world due to increased globalization. Professionals have different perspectives on how globalization has affected business today. Many scholars question whether or not globalization is positive or negative, especially for developing nations. These professionals feel that globalization brings both pros and cons to the world as a whole. Finally, business people should use this gained knowledge of globalization and apply it to future situations in the business environment.

A clear definition of globalization is important before beginning. Globalization is the increasing integration and interdependence among countries resulting from the modern flow of people, trade, finance and ideas from one nation to another. The World Bank, a strong supporter of globalization, defines it as, "the growing integration of economies and societies around the world." (Mukherjee, 2008). Globalization became an increasingly used term with technological innovations-most significantly the World Wide Web or Internet- that made financial transactions and recordkeeping of international shipments quicker and easier. As improved communication networks brought far-flung businesses together, it also brought different cultures together expanding the concept of globalization which now intersects the media, ideas, politics, the arts and other social artifacts across the planet. Globalization has expanded beyond its economic roots and has proliferated into human rights, the environment and even national security. Although these new initiatives do not look similar to the ones we are used to seeing the difference is that today's agreements come equipped with their own governance structures. This has led to an astonishing shift of policy-making prerogatives from individual nation-states to a host of new, higher level political institutions. This is a cause for celebration the notion that political institutions have come together to grow in size, importance and boldness is today's conventional wisdom.

HISTORY OF GLOBALIZATION

Globalization began as soon as the world began to become connected at the beginning of human history. Trading began centuries ago when European explorers began trading on their voyages overseas. Trade opened up and countries began trading gems, spices, silk, gold and silver. Eventually trading companies in each country were formed and international trade began. International trade steadily increased up until World War 1. The beginning of World War 1 ended the first big boom of globalization for trade and international investment. After this time the Suez Canal opened up along with new railroads which decreased the transportation time between Europe and Asia (Mukherjee, 2008). This increased the amount of trade that was taking place, which increased the competition between countries to participate in international trade. During this time trade was centered near England and those countries that had excess resources, land, and capital. In the 19th Century the United States made a transition to the center of international trade with the U.S. share of manufactured goods increasing from 30% in 1840 to near 60% in 1913 (Mukherjee, 2008) However, the United States began to migrate toward being the center of trade, but their progress was hindered by the Great Depression and World War II. …