Assignment on Globalization Submitted To: Professor Dr.

Khondokar Bozlul Hoque Department of International Business Course Name: Theory and Practice of International Business (EIB 510)

Submitted by Shah-Mesbah Uddin Chowdhury ID # 80105045

Globalization: Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. Globalization is not new, though. For thousands of years, peopleand, later, corporationshave been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages. Likewise, for centuries, people and corporations have invested in enterprises in other countries. In fact, many of the features of the current wave of globalization are similar to those prevailing before the outbreak of the First World War in 1914. Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. Globalization is not new, though. For thousands of years, peopleand, later, corporationshave been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages. Likewise, for centuries, people and corporations have invested in enterprises in other countries. In fact, many of the features of the current wave of globalization are similar to those prevailing before the outbreak of the First World War in 1914.

Positive effect of globalization: Globalization has opened up broader communication lines and brought more companies as well as different worldwide organizations into India. This provides opportunities for not only workingmen, but also women, who are becoming a larger part of the workforce. With new jobs for women, there are opportunities for higher pay, which raises self-confidence and brings about independence. This, in turn, can promote equality between the sexes, something that Indian women have been struggling with their entire lives. Globalization has the power to uproot the traditional views towards women so they can take an equal stance in society Supporters of globalization argue that it is good and beneficial. Some of their arguments are listed below. 1. Globalization has created the concept of outsourcing. Work such as software development, customer support, marketing, accounting and insurance is outsourced to developing countries like India. So the company that outsourced the work enjoys the benefit of lower costs because the wages in developing countries is far lower than that of developed countries. The workers in the developing countries get employment. Developing countries get access to the latest technology.

2. Increased competition forces companies to lower prices. This benefits the end consumers. 3. Increased media coverage draws the attention of the world to human right violations. This leads to improvement in human rights. .

Negetive effect of globalization: Opponents of globalization point out to its negative effects. Some of them are listed below. 1. Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their people. This has happened because manufacturing work is outsourced to developing nations like China where the cost of manufacturing goods and wages are lower. Programmers, editors, scientists and accountants have lost their jobs due to outsourcing to cheaper locations like India. 2. Globalization has led to exploitation of labor. Prisoners and child workers are used to work in inhumane conditions. Safety standards are ignored to produce cheap goods. 3. Job insecurity. Earlier people had stable, permanent jobs. Now people live in constant dread of losing their jobs to competition. Increased job competition has led to reduction in wages and consequently lower standards of living. 4. Terrorists have access to sophisticated weapons enhancing their ability to inflict damage. Terrorists use the Internet for communicating among themselves. 5. Companies have set up industries causing pollution in countries with poor regulation of pollution. 6. Fast food chains like McDonalds and KFC are spreading in the developing world. People are consuming more junk food from these joints which has an adverse impact on their health. 7. The benefits of globalization is not universal. The rich are getting richer and the poor are becoming poorer. 8. Bad apects of foreign cultures are affecting the local cultures through TV and the Internet. 9. Enemy nations can spread propaganda through the Internet.

10.Deadly diseases like HIV/AIDS are being spread by travellers to the remotest corners of the globe. 11.Local industries are being taken over by foreign multinationals. 12.The increase in prices has reduced the governments ability to sustain social welfare schemes in developed countries. 13.There is increase in human trafficking. 14.Multinatonal Companies and corporations which were previously restricted to commercial activities are increasingly influencing political decisions. Effect on economics: The effects of Globalization are manifold, affecting various aspects of the world economy to bring about overall financial betterment. The effects of Globalization exert intense influence on the financial condition as well as the industrial sector of a particular nation. Globalization gives birth to markets based on industrial productions across the world. This in turn, widens the access to a diverse variety of foreign commodities for consumption of the customers, owing to the marketing strategies undertaken by different corporations. In the world economic arena, Globalization facilitates the formation of a common worldwide market, on the basis of the liberal exchange of both cash and kinds. As far as Political Globalization is concerned, it helps in the formation of a world government to normalize the existing interactions among countries. It also ensures the rights emerging out of Economic and Social Globalizations. Promotion of liberal trading activities is perhaps the greatest contribution of Globalization, acting as a boon to the world economy. Following are the advantages enjoyed by countries engaged in mutual free trades: 1. Considerable reduction in the cost of transportation, especially with the development of containerization with respect to overseas ocean shipments 2. Decrease or abolition of control over capital and the capital market

3. Formation of free zones for carrying out commercial activities, against payment of little or no tariffs at all 4. Decrease, abolition or synchronization of subsidies in domestic trades 5. Decrease or abolition of every kind of tariffsHowever, the concept of free trade emerging from Globalization suffers from limitations as well: 6. Restrictions imposed on the supernatural identification of intellectual properties. This means that the patents granted by a particular nation will by recognized in another country. 7. Synchronization of intellectual asset laws across most states are subject to additional restrictions.

Advantages of Globalization 1. 2. 3. 4. 5. Goods and people are transported with more easiness and speed The possibility of war between the developed countries decreases Free trade between countries increases Global mass media connects all the people in the world As the cultural barriers reduce, the global village dream becomes more realistic 6. There is a propagation of democratic ideals 7. The interdependence of the nation-states increases 8. As the liquidity of capital increases, developed countries can invest in developing ones 9. The flexibility of corporations to operate across borders increases 10.The communication between the individuals and corporations in the world increases 11.Environmental protection in developed countries increases

Conclusion: It is claimed that globalization increases the economic prosperity and opportunity in the developing world. The civil liberties are enhanced and there is a more efficient use of resources. All the countries involved in the free trade are at a profit. As a result, there are lower prices, more employment and a better standard of life in

these developing nations. It is feared that some developing regions progress at the expense of other developed regions. However, such doubts are futile as globalization is a positive-sum chance in which the skills and technologies enable to increase the living standards throughout the world. Liberals look at globalization as an efficient tool to eliminate penury and allow the poor people a firm foothold in the global economy. In two decades from 1981 to 2001, the number of people surviving on $1 or less per day decreased from 1.5 billion to 1.1 billion. Simultaneously, the world population also increased. Thus, the percentage of such people decreased from 40% to 20% in such developing countries.