Is globalisation sustainable?

Résumé du document

Economic globalization is a major driver in today's world and has obvious and hidden implications on business and our daily life, as it is one of the factors of an extremely complex interconnectedness of human life across the planet. Local competition has existed since man was able to travel, but for millennia, technological limitations and the cost of transport ensured that such competition was relatively limited and affected only a small range of goods. As man and technology advanced, more and more economic activity has become tradable and the world economy is increasingly integrated, with great benefits, as well as costs. Economic globalization is a development which is not only beneficial for the stakeholders, but also brings about obstacles and imbalances in the current trading system. For the purpose of this seminar, the focus is on the affects of economic globalization on international business and management.

Extraits

[...] Is globalisation a new form of neo-colonialism? But do poor countries have the actual choice to turn their back on an economic globalisation? The idea of globalisation is free trade, which is beneficial for the trading countries, under the idea of comparative advantages being used. Is the establishment of a ‘North-South divide' what globalisation is about? Equal distribution of wealth?! 4 Political affects on corporations National governments are facing difficulties in the implementation of policies due to an increasingly ‘borderless' world. [...]

[...] It is generally implemented with constant investments in education and training. Thus, globalisation influences strategic decisions and highlights a management of diverse and complex activities. Whirpool, for example, is a global manufacturer with 68,000 employees and nearly 50 manufacturing and technology centres around the globe. It incorporates also many brands names: KitchenAid, Brastemp, Bauknecht, and Consul in more than 170 countries. Over the last decade, Whirlpool has transformed itself from a regional manufacturing and trade-focused business into a global enterprise. [...]

[...] The lengthening of the supply chain can shift the ecological division of labour, which means that the cost and benefits of the economic globalisation are not equally distributed. Is this example showing that the investment into distant countries is offset by the power and profits to the ‘global cities' in the Western world? Are lax environmental policies in Peru, Bangladesh or Mexico, which considerably reduce production costs, the source of no limits than the sky for prestigious bank towers and office buildings in London, Frankfurt, Brussels or Washington? [...]

[...] Thousands of Indian farmers have committed suicides due to debts resulting from a new dependence on costly yet unreliable hybrid and Bt cotton sold by Monsanto and its Indian partners. The Agreement on Agriculture (AoA) has destroyed agricultural livelihoods of millions of peasants and food security of the world's poor.” From another article of Vandana Shiva April two thirds of India makes its living from the land. But corporations are replacing these million of small farmers and their viability is destroyed. Farmers got into debt which gives a reflection of a negative economy. [...]

[...] Differentiation is still controversially discussed . The marketing strategy is to sell products in the whole word, to conquer new markets and new consumers with the least possible disadvantages. Theoretically it is easier to standardise a product than to differentiate it for every target market. More and more products are standardized, and global brands are recognised in the whole world. Even though it is easier for businesses, it contributes to a loss of cultural diversity. In practise however, businesses need to be vigilant regarding some national standards, living standards, cultural traditions, etc. [...]