Effects of Globalization

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Category: Business and Industry

Date Submitted: 09/18/2011 10:26 AM

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It is no surprise that our international business class textbook, “Competing in the Global Marketplace”, begins with chapter one on globalization. The chapter set the tone for the entire class, illustrating in what manner the world’s economy is evolving to be more global, as well as the way the foundation of business is changing to meet the emergence of what is now called, the multinational business. This paper will research the effects of globalization, with focus on the USA. The ripple effect of the harsh US economy, and how unemployment, and even foreclosures are an inherent part of their problem, seen as a result of the role that outsourcing plays in a globalized economy. These growing pains are not specific to only the USA, but many other developed nations as well. The importance of globalization can not be underestimated. Globalization is the development of integration, communication and interconnection of business, its people and government of various countries. We will explore how this development is motivated by trade and foreign direct investment that is supported by levels of technology and the implications to the United States economy as well as other developed and developing nations. Furthermore, globalization has effects on economic development of both the home nation as well as the host nation which has pros and cons right here in the United States. According to Hill, “globalization refers to the shift toward a more integrated and interdependent world economy” (2011, p.6). As industry globalizes and a greater dimension of business movement conquers national boundaries, institutions are essential to oversee, influence and oversee the all-encompassing global forum. Several institutions have been established to guide and carry out the function of global oversight. These institutions include the World Trade Organization, the International Monetary Fund, the World Bank and the United Nations. The World Trade Organization is in charge of policing the...