GLOBALIZATION

                              GLOBALIZATION?                                                          

Globalization is a term to used to describe how trade and technology have made the world into a more connected and interdependent place.                                                                        Globalization also captures in its scope the economic and social changes that have comes about as a result.                                                                 

A SIMPLE DEFINITION OF GLOBALISATION                                                                        

1. Globalisation means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalisation is that it promotes and increases interactions between different regions and populations around the globe.          
2. Globalisation is a term that refers to the increasing interconnectedness (The state of being connected with each other)  and interdependence of countries and people around the world. It is driven by advancements in technology, communication, transportation, and trade, which have made it easier for goods, services, capital, and information to flow across borders.
3. At its core, globalization is about breaking down barriers and creating a more integrated global community. It allows for the exchange of ideas, cultures, and values, leading to a greater understanding and appreciation of diversity.
4.  Globalisation has facilitated the spread of knowledge and innovation, enabling countries to learn from each other and collaborate on various fronts, such as science, technology, and medicine.      One of the key aspects of globalisation is international trade. It has opened up new markets and opportunities for businesses, allowing them to expand their reach beyond domestic borders. This has led to economic growth and job creation in many countries. Consumers have also benefited from globalization through access to a wider range of products and services at competitive prices.
5.  Has also transformed the way we communicate and interact with each other. The internet and social media have made it possible to connect with people from different corners of the world instantly. This has fostered cross-cultural understanding, promoted social movements, and provided platforms for individuals to voice their opinions on a global scale.

In other words , globalization is a multifaceted phenomenon that encompasses economic, social, and cultural aspects. It has reshaped the world by bringing nations closer together, fostering collaboration and exchange, and creating both opportunities and challenges. Understanding and managing the impacts of globalization is crucial for ensuring its benefits are shared equitably and sustainably.

                                                                                                                                            DEFINITION OF GLOBALISATIN GIVEN BY WHO                      

According to WHO, globalization can be defined as” the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”                                                                              

HISTORY OF GLOBALISATION 

For some people, this global phenomenon (something that is observed to occur or to exist) is inherent to human nature. Because of this, some say globalization begun about 60,000 years ago, at the beginning of human history. Throughout time, human societies’ exchanging trade has been growing. Since the old times, different civilizations have developed commercial trade routes and experienced cultural exchanges. And as well, the migratory phenomenon has also been contributing to these populational exchanges. Especially nowadays, since traveling became quicker, more comfortable, and more affordable.

• In the year 1930s Economic are collapse the government took a step back to the unemployment.
• JOHN MAYNARD KEYNES (was an English Economist and philosopher) to open a economy since government isn`t fulfilling its duties.                                                                                      he says that "Dig the hole fill the hole"                                                                                            
• WB and IMF  provided loans to develop the nations on the conditions of opening economy, having capitalistic policies ,economic liberalisation and reduce schemes and remove them as well as                                                                                                                  
• Structural adjustment program-will become anarch                                                                          
• Had a negative effect on sub-sharan countries                                                                                   
• In an India said that it'll open the economy but not to the extent that it"ll take away schemes.       

EXAMPLE OF GLOBALISATION                                                                                                              

1. Economic globalisation: is the development of trade systems within transnational actors such as corporations or NGOs.     
2. Financial globalisation: can be linked with the rise of a global financial system with international financial exchanges and monetary exchanges. Stock markets, for instance, are a great example of the financially connected global world since when one stock market has a decline, it affects other markets negatively as well as the economy as a whole.                                                            
3. Cultural globalisation : refers to the interpenetration of cultures which, as a consequence, means nations adopt principles, beliefs, and costumes of other nations, losing their unique culture to a unique, globalized supra- culture.                                                 
4. Political globalization: the development and growing influence of international organizations such as the UN or  WHO means governmental action takes place at an international level. There are other bodies operating a global level such as NGOs like Doctor without board or oxfam.      
5. Sociological globalization : information moves almost in real-time, together with the interconnection and interdependence of events and their consequences. People move all the time too, mixing and integrating different societies;
6. Technological globalization: the phenomenon by which millions of people are interconnected thanks to the power of the digital world via platforms such as Facebook, Instagram, Skype or Youtube.                  
7. Geographic globalization: is the new organization and hierarchy of different regions of the world that is constantly changing. Moreover, with transportation and flying made so easy and affordable, apart from a few countries with demanding visas, it is possible to travel the world without barely any restrictions.

                                                                                                                                            POSITIVE IMPACT OF GLOBALISATION                                                                          

Some would argue that globalisation has spread wealth and led to the improvement of standards of living in new industrialised company (NIC) such as India and China. Others claim that it is creating an unfair world where the rich countries exploit the world's poorest people and it has increased the development gap.                                                                      

1. Multinationals provide new jobs and skills.                                                                                  
2. Multinationals bring foreign currency to local economies when they buy local products and services.    
3. The mixing of people and cultures from all over the world enables the sharing of ideas and lifestyles, creating vibrant cultural diversity.                                                                              
4. People can take holiday in far off locations. 
5. Consumers enjoy a greater choice of goods and services at cheaper prices.                                    
6. Migration of people can fill labour and skill shortages.                                                              
7. It helps make people more aware of global issues, such as desertification and global warming, and able to work together to tackle these issues.                                                 
8. It enables governments to work together to tackle global issues or respond to events, such as a natural disaster.                                                                                             

NEGATIVE IMPACT OF GLOBALIZATION

1. It operates mostly in the interests of the richest countries, who continue to dominate world trade. 
2. Multinational companies may drive local companies out of business and are sometimes more powerful than the governments of the countries in which they invest.                                            
3. It is a threat to the world's cultural diversity - threatening local traditions and languages and making the whole world more uniform to fit the western model.
4. Some nations feel that they are losing control over key decisions and sacrificing their sovereignty.
5. Migration of people across the world can caused  social tensions and conflict of ideologies.
6. Industry may begin to thrive in NICs at the expense of jobs in manufacturing in  (HICs). The decline of traditional industries in HICs is known as deindustrialisation. Globalisation is one major factor in the process.   

          

CHALLENGES OF GLOBALISATION

While globalization offers many benefits, it’s not without challenges. Some of the hurdles companies face when going global include:

 International Recruiting

A common challenge global leaders face when going global is international recruiting. Recruiting across borders creates unknowns for HR teams. First, companies create a plan for how they will interview and thoroughly vet candidates to make sure they are qualified when thousands of miles separate them from headquarters. Next, companies need to know the market’s demands for salaries and benefits to make competitive offers.

To ensure successful hires, HR teams must factor in challenges like time zones, cultural differences, and language barriers to find a good fit for the company.

 Managing Employee Immigration

Despite the benefits of global mobility, immigration is a top challenge companies face when expanding overseas. Immigration laws change often, and in some countries, it is extremely difficult to secure visas for employees that are foreign nationals. The U.S., for example, is getting stricter with granting H-1B visas, and Brexit makes immigration to the U.K. difficult.

 Incurring Tariffs and Export Fees

Another challenge leaders face when going global is incurring tariffs and export fees. For companies looking to sell products abroad, getting those items overseas can be expensive, depending on the market.

Payroll and Compliance Challenges

Another common global expansion obstacle is managing global payroll and maintaining compliance with changing employment and tax laws. This management task gets even more difficult if you’re trying to manage operations in multiple markets.

 Loss of Cultural Identity

While globalization has made foreign countries easier to access, it has also begun to meld unique societies together. The success of certain cultures throughout the world caused other countries to emulate them. But when cultures begin to lose their distinctive features, we lose our global diversity.

 Foreign Worker Exploitation

Lower costs do benefit many consumers, but it also creates tough competition that leads some companies to search for cheap labor sources. Some Western companies ship their production overseas to countries like China and Malaysia, where lax regulations make it easier to exploit workers.

Global Expansion Difficulties

For businesses that want to go global and discover the benefits of globalization, setting up a compliant overseas presence is difficult. If companies take the traditional route of setting up an entity, they need substantial upfront capital, sometimes up to $20,000, and costs of $200,000 annually to maintain the business.

Additionally, global businesses must keep up with different and ever-changing labor laws in new countries. When expanding into new countries, companies must be aware of how to navigate new legal systems and ensure global compliance. Otherwise, missteps lead to impediments and severe financial and legal consequences.

 Immigration Challenges and Local Job Loss

• The political climates in the U.S. and Europe show that there are different viewpoints on the results of globalization.
•  Many countries around the globe are tightening their immigration rules, and it is harder for immigrants to find jobs in new countries.
• This rise in nationalism is mainly due to anger from the perception that foreigners fill domestic jobs or that companies move their operations abroad to save money on labor costs.
• For example, the Economic Policy Institute reports that the U.S. trade deficit with China (or the amount by which our imports exceed our exports) cost Americans 3.4 million jobs since 2001.