Globalization

Globalization

Globalization is the process of integration between the people, companies, and governments of other nations. International trade and investments drive this process, and it is aided through information technology. Globalization has become an ever-present reality in the world economy, and in the last few decades, computers, cell phones, Internet, and other technologies have allowed for the rapid expansion of globalization (The Levin Institute, 2013).

Globalization is a highly controversial issue. Proponents of globalization argue that it allows poor countries to develop their economies by trading with wealthier countries, thus increasing their quality of life. Opponents accuse globalization of benefiting large western corporations at the expense of the local economies of poorer countries in which they operate. Others believe that globalization is harmful to America due to the large exportation of jobs and materials overseas (Roberts, 2010). Regardless of which position is taken, most agree that there are both advantages and disadvantages to globalization.

Advances in the methodology of international trade have allowed businesses to sell to a worldwide marketplace. Technological advances have enabled businesses to effectively outsource operational processes to foreign countries that have cheaper raw materials and labor. The interoperability of international financial markets has made it easier for businesses to raise money from foreign sources.

There is little doubt that the business landscape has changed drastically as the world has moved into the 21st century. “Business globalization makes it imperative that owners, directors, and managers understand the opportunities and threats inherent in lowered barriers to international exchange (Outsourcing to Foreign, 2013).” Some could argue that the global economic downturn is a result of growing pains in financial and labor markets due to business globalization.

The government has a vested...