Globalization

1. Impact of Globalization on International Business

Globalization is a process of influence, interaction and interconnectedness among people and
business across the world.
As globalization creates opportunities of interaction among people of different countries. It
surely has a great impact on international business. International business is a concept that refers
to the purchase and selling of goods, services, knowledge, technology and capital outside the
national border. That's why globalization has both positive and negative effects on international
business.
Let's take a look at how globalization is affecting international business.

 Global interconnectedness – Globalization interconnects people and markets around the

world. It creates more opportunities for investors to go on business at a greater distance.
Besides, it also allows countries to unify their economies through international trade.
 Rise in competition - Because of globalization companies can expand their business
from one country to another country. It creates opportunity to manufacture good quality
products and services in a cost effective way. It creates a competition to provide better
service.
 Increase in investment level - Globalization connects different economies worldwide.
As a result they can increase their investment to receive and trade better service and
technology for greater profit.
 Better technology and efficiency – As more advanced technology and system are
needed for global trading, globalization encourages international companies to invest on
better technology and more efficient workforce. Besides, globalization enables transfer of
technology from developed countries to developing countries.
Counter Points:
Globalization also has some negative impacts such as social problems, environmental issues.

 Human trafficking and Child labor - Some dishonest businessman tries to get high
profit whether it's ethical or not. They recruit young children as slaves to save cost. It
encourages human trafficking.
 Environment Pollution – Due to high demand of industries worldwide more and more
industrial factories are built. It increases carbon dioxide emissions in the world.
2. Free movement of labor:
Globalization causes free movement of labor.
It means that workers are entitled to look for work in another country, without requiring any visa.
Free movement of labor is a fundamental principle of the EU. It means EU citizens are entitled to
look for a job in another EU country. Also, qualifications are universally accepted across Europe
and in theory, there should be no discrimination for firms choosing between native and migrant
workers.
Increased labor migration gives advantages to both workers and recipient countries. If a country
experiences high unemployment, there are increased opportunities to look for work elsewhere.
This process of labor migration also helps reduce geographical inequality. This has been quite
effective in the EU, with many Eastern European workers migrating west.
Also, it helps countries with labor shortages fill important posts. For example, the UK needed to
recruit nurses from the Far East to fill shortages.
However, this issue is also quite controversial. Some are concerned that the free movement of
labor can cause excess pressure on housing and social services in some countries. Countries like
the US have responded to this process by actively trying to prevent migrants from other
countries.
Counter Points:
1. Large net flows of people cause infrastructure problems.
2. Large net flows exacerbated housing crisis.
3. Congestion.
4. Downward pressure on wages.
5. Large net flows exacerbated housing crisis.
6. Brain Drain 18
7. Immigration may mask the shortage of skilled labor.
3. The Positive Impacts of Globalization on Education

 Because of the globalized education, teaching methods are now more interconnected
and widespread. Access to schools has been enhanced and because of that students
are increasingly becoming prepared for multinational roles. Such preparation also
allows students a more holistic understanding of how the global business scene works
and encourages their active participation in it.

 Working together in a multicultural environment allows students to acquire new

knowledge and thus make sense of new and unfamiliar situations by applying that
knowledge. Students are more prepared to face adversity or circumstances they
wouldn’t necessarily run into when receiving a more localized education.

 Globalized education also enhances teamwork and the exchange of ideas among
students. As teamwork is crucial in the academic and business world alike, learning to
actively contribute is an asset for students.[ CITATION Pol18 \l 1033 ]

 Global education interconnects methods of teaching from worldwide systems to

encourage the international development of environmental sustainability, as well as
contribution toward fortifying global industries. These educational initiatives
prioritize global access to school from the primary to the university levels, instigating
learning experiences that prepare students for multinational leadership roles.

 .With globalization some of the challenges for knowledge, education and learning
will provide today’s learners the ability to be more familiar and comfortable with
abstract concepts and uncertain situations.[ CITATION Pri17 \l 1033 ]

Counter Points:

 People who have challenges along the way may not get the help they need.
 People opting for course, when they really need coaching.
 Lots of overlap in content between inexpensive courses.
4. Globalization creates free trade:
Trade is the purchase and sale or exchange of goods and services across national borders.

 Because of globalization the tax and tariff become less so the trade among the nations
becomes easier.
 Countries can share resources together and can do trade more effectively because of
free trade.
 In free trade there is a bigger export market for domestic manufacturing products.
 Multinational companies can provide each other more advanced technologies and
more job opportunities.
 Globalization represents free trade which promotes global economic growth; creates
jobs, makes companies more competitive, and lowers prices for consumers.
Real-World Examples of Free Trade Agreements
The European Union is a notable example of free trade today. The member nations form an
essentially borderless single entity for the purposes of trade, and the adoption of the euro by most
of those nations smooths the way further. It should be noted that this system is regulated by a
bureaucracy based in Brussels that must manage the many trade-related issues that come up
between representatives of member nations.
U.S. Free Trade Agreements
The United States currently has a number of free trade agreements in place. These include multi-
nation agreements such as the North American Free Trade Agreement (NAFTA), which covers
the U.S., Canada, and Mexico, and the Central American Free Trade Agreement (CAFTA),
which includes most of the nations of Central America. There are also separate trade agreements
with nations from Australia to Peru.
Free trade is a way for countries to exchange goods and resources. This means countries can
specialize in producing goods where they have a comparative advantage (this means they can
produce goods at a lower opportunity cost). When countries specialize there will be several gains
from trade:
Counter Points:
1. Lower prices for consumers
2. Greater choice of goods, e.g. food imports enable a more extensive diet.
3. Bigger export markets for domestic manufacturers
4. Economies of scale through being able to specialize in certain goods
5. Greater competition[ CITATION Tej20 \l 1033 ]
5. Globalization affecting unemployment:
Globalization directly affects unemployment. Now a days, unemployment is a big issue and
globalization is considered as one of the solution of this problem.
 Globalization takes off the barriers of international borders. Businesses running overseas
can create more employment for the local people.
 Export industry can be greatly benefitted by globalization. Foreign countries investing
their money in local industries will definitely boost the economy as well as create a big
number of job opportunities for the unemployed.
 Internet, which is a driver of globalization, created multiple job opportunities from
around the world for a skilled person sitting at home.

Counter Points:
1. Newly created job opportunities are mostly based around the cities and industrial areas.
Hence the people seeking those jobs end up in these places, causing overpopulation.
2. For poor countries like Bangladesh, people are seeking for jobs instead of getting
education at a very young age.
3. Unskilled workers are left out of the opportunities as the qualified and privileged ones
are taking away all the jobs[ CITATION Edw12 \l 1033 ].

References:
Gupta, P. (2017, 4 6). EdTechReview. Retrieved from https://edtechreview.in/news/2730-
globalization-in-education
Papadopoulou, P. (2018, 07). Retrieved from Oxford Open Learning:
https://www.ool.co.uk/blog/the-effects-of-globalisation-on-education/
Pettinger, T. (2020). Costs and benfits of globalization. Retrieved from ECONOMICSHELP:
https://www.economicshelp.org/blog/81/trade/costs-and-benefits-of-globalisation/?
fbclid=IwAR3moKlu40ZEb48g36So2mIep8jWUdO4aQz-0rjovGcllIDoiMNdmboko0M
Alden, E. (2012, August 29). Council on Foreign Relations. Retrieved from ForeignAffairs.com:
https://www.cfr.org/blog/globalization-job-loss-and-stagnant-wages-evidence-changing