Submitted by: Submitted by lynnxu
Views: 10
Words: 499
Pages: 2
Category: Business and Industry
Date Submitted: 10/12/2016 08:39 PM
Globalization penalty
With the development of the economy, the economic globalization accelerates rapidly. Global economy brings companies lots of benefits. For example, it increases the communication among the firms all over the world, which can save time on improving technology and management methods by sharing. And resources sharing can make production more efficient and allocation more optimal. Besides, globalization also can promote the further development of international trade and investment.
However, every coin has two sides. Globalization is a double-edged sword. It brings advantages and disadvantages at the same time, which the article called globalization penalty.
The author points out that globalization might make companies less healthy by the following three way. Firstly, global organizations are consistently less effective at setting a shared vision and engaging employees around it than are their local counterparts, and they are also more difficult to innovate with a clear standard. Then, it might be more challenging for them to establish relationships with government and community, because of the business with so many countries.
Particularly, globalization might cause more problems to developing countries. Malaysian Prime Minister Mahathir argues that developing countries in the process of economic globalization will lose their independence, and the globalization will make them more and more poor. And the gap between developing countries and developed countries is still growing. What’s more, the culture corrosion might cause come of the culture of middle and small-sized enterprises disappear.
In the eyes of the western developed countries, such as America, globalization is that other countries are supposed to obey their interests. And other countries have to comply the order they set and undertake kinds of low-end industries to use developing countries’ resources. For developed countries, it can consolidate their position and maintain their...