Business Studies: Computer and globolization (Essay Sample)

Week 2 d 2 6080
Name
Institution
Business Studies
Globalization is defined as the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets. Several factors have contributed to globalization such as communications that has increasingly become sophisticated each day, technologies and services of transportation, the mass migration, and movement of people from place to place. In addition to this, globalization is an avenue for huge profits to companies as well as nations, but it has been made difficult by the diverse expectations, the different standards of living, the varying culture and values, the different legal systems, as well as linkages of cause-and-effect globally (International Labour Organization, n.d.).
Globalization has a number of effects on a nation as a whole, and some of these factors will be explained below. Firstly, it leads to increased living standards; hence, nations have access to foreign lending. Foreign lending enables countries to focus on developing infrastructure, which simultaneously leads to elevated living standards (Robertson, 1992). In addition to this, globalization leads to freer trade within countries. Homegrown industries will be exposed to a wider international market; hence, fostering trade among countries. Globalization, however, has its downside; in as much as it may reduce poverty and unemployment, it also leads to a situation where the gap that exists between the educated and uneducated is widened. Lastly, foreign companies in the country will lead to increased employment opportunities especially with the skilled workforce. However, in cases where there are technological improvements in domestic companies, the need for unskilled labor will be reduced, and this will lead to increased unemployment rates (International Euromonitor, 2010). Therefore, globalization does not really make winners or lo...