Falcon's Invoice Discounting: Your Path to Prosperity
Globalization the New Concern of Business
1.
2.
3. Generated from the
orginal word,
globalization can be
described as the spread
of economic innovations
around the world and
the political, legal and
cultural adjusrments
that accompany this
diffusion.
4.
5. Globalization, or the increased interconnectedness and
interdependance of peoples and countries, is generally
understood to include two interrelated elements: the
opening of borders to increasingly fast flows of goods,
services, finance, people and ideas across international
borders; and the changes in institutional and policy
regimes at the international and national levels that
facilitate or promote such flows.
6.
7. Globalization, although not a new phenomenon, has increased
rapidly in recent years.
It has been driven by technological advances and the reduced cost
of making transactions (exchanges) across borders and
distances, as well as the increased mobility of capital.
These forces mean that globalization not only consists of
economic activity, but also extends to political, cultural,
environmental and security issues, and relates to the increasing
interconnectivity of countries and communities.
8.
9. Economic globalization is generally associated with
neo-liberal policies.
Such policies include reductions in tariffs, the reduction
or elimination of restrictions on foreign investment,
and the inclusion of services such as banking and
insurance in trade regimes.
10.
11. While precise definitions of
globalization differ, it is
generally used to describe a
process of growing
interdependence that
represents a fundamental
change from a world of
individual and independent
states to a world of state
interdependence.
12.
13. As a result national boundaries, but also economic and cultural
boundaries, are becoming less important. Interdependence
refers to the relationship between different actors (states,
societies) that are connected in such a way that if something
happens to one, all will be affected.
This term is also used to describe the interrelationship between
economic and noneconomic variables, or when one nation's
welfare depends on another's or a group of others, or vice versa.
Interdependence is often used synonymously with globalization,
but they are different.
14.
15.
16. Economic change: trade liberalization, deregulation,
expansion of the global market place,
Political change, redistribution of power from states to
interstate bodies and the growth of global civil society,
Social and cultural change,
Technological change, including improved global
telecommunications and transport links.
17.
18. Spatial components, such as international trade, global
levels of political representation, global communication
and impacts of increased cultural exchange.
Temporal components, such as the increased speed of
transactions, travel, political change, resource depletion
and social mobilization.
Cognitive components, such as the spread of neo-liberal
economics, democratic principles and support for human
rights.
19.
20.
21.
22. The increases in economic cross-border flows that have
resulted in more “open” economies are a result, in part, of
World Trade Organization, International Monetary Fund
and World Bank policies. All this change is supported by a
new international architecture - from the United Nations
and international organizations, such as WHO, to
economic blocs such as the European Union, the
Organization of Petroleum Exporting Countries and the
North American Free Trade Agreement.
23. For some critics, this architecture supports and
facilitates the benefits of globalization, but fails to
limit its worst excesses as it drives forward a neo-
liberal agenda that works to benefit the richer, more
powerful nations.
24.
25. A more positive view of globalization
is that it has the potential to boost
productivity and living standards
everywhere because a globally
integrated economy can lead to a
better division of labor and the
right conditions for companies to
exploit greater economies of scale.
It is also claimed that, with
globalization, capital can be
shifted to whatever country offers
the most productive investment
opportunities, creating economic
growth.
26. Other concerns include:
Globalization may undermine national sovereignty and the
ability of states to determine their own affairs, particularly in
economic terms.
Access to benefits of globalization may be uneven, particularly
for low-income countries that may be marginalized. Who gains
and who loses from globalization is a pivotal question: some
countries have gained from export-led growth but many,
particularly in Africa, have not.
The increased risk of financial market instability.
27. Internationalization is the process of extending national
activities across borders.
Typically, it is used to describe the expansion of economic
activities from one country to another.
For example, a company that manufactures cars in one
country goes through a process of internationalization (or,
becomes an international company) when it opens a
factory in another country.
Internationalization differs from globalization in that
globalization includes non-economic factors.
28. Social justice advocates argue that globalization has
provided an opportunity to focus global attention on
previously-neglected issues (such as corruption and
lack of transparency in certain countries) and on
issues arising from globalization itself, such as the
accountability of international organizations and the
costs and benefits of globalization to the world's
poorest people.
