Globalization
Globalization is the process of increased interconnectedness among countries most notably in the areas of economic, political, and cultural exchange. As organizations, we are increasingly participating in a global arena, and the impact of global forces will continue to bring changes that affect our organizations and daily lives.
The process of globalization dates back centuries as technology has enabled enhanced travel, communication, and trade between countries. The past century, however, has seen an accelerated rate in the changes associated with globalization. Better technology, improved infrastructure, and the increasing popularity of free trade agreements have opened doors for companies around the globe.
In today’s globalized world, a variety of factors regulate international interactions. Culture plays a very important role in globalization. Cultural exchange through different media, such as the internet, satellite communication, print media and television are the most powerful instruments that are used to bring different people together. Similarly, everyone today is exposed to a variety of cultures through interactions occurring in different countries.
Globalization also has an economic impact. Companies are able to exploit a globally fragmented labor market, often setting up operations in developing countries where labor costs can be much lower. Although this allows companies to benefit from higher profit margins, it also often leads to a decrease in the quality of jobs and working conditions in lower-income countries.
Political factors like the deregulation of the international trade, the establishment of international organizations, and the adoption of international standards have allowed companies to access information, technology, and resources from any part of the world. The prevalence of multinational corporations has resulted in a globally integrated system of policy making, finance and regulation, resulting in higher levels of competition and better access to capital.
Finally, increased technology and communication sectors have had a profound effect in increasing the interconnectedness of the world. The internet has made it extremely easy to access information and exchange goods, services, and money across national borders. This interconnectedness has provided more opportunities for businesses to expand, creating more employment opportunities and higher levels of international competition.
In conclusion, globalization has had both positive and negative impacts on our lives and our organizations. On one hand, globalization has made it easier for companies to access information, technology, and resources from different countries. On the other hand, it has led to increased unemployment and a decrease in the quality of job opportunities in some parts of the world. Globalization will continue to shape our lives and organizations, but it is important to be aware of both the opportunities and challenges it presents.
