I D : 08020127
Tutor : Steve Gattey
Course :Pre-sessional Academic English Course
Date : 05/09/2008
thesis-led
Summarize the main effects of globalization and discuss to what extent they are beneficial to subject area
It is widely believed that globalization has become an important issue, which draws the general concern of the international community. Globalization in its literal sense is the process of transformation of regional things or phenomena into global ones. It can also be used to describe a process by which the people of the world are unified into a single society and function together. The effect of globalization is all-pervasive, for example, international politics, economics, technologies and cultural exchanges. Whether it brings advantages or disadvantages to the world has become a hot topic. Supporters contend that globalization make positive impacts, which are far outweigh the disadvantages .On the other hand, critics think sometimes international integration is unequal . According to Williamson (1998) "Globalization leads to increase the gap between poor and rich.” In this essay, I will observe the positive and negative effects of globalization in different areas, such as international trade, people's daily life, and the peace of the world, after which I will discuss the benefits it brings to my subject area— management.
Globalization makes it possible to carry out international trade between different countries, by which they can reasonably make use of resources and exert their competitive advantages to maximum benefits for all stakeholders. Furthermore, it is meaningful to both domestic market and global market—products can be easily transferred between different locations. Due to this overall resources and benefits in market can be satisfied as much as possible from the global point of view. Goods and services, labor force, capital management have obtained positive effects by globalization. Another profit is that locations of raw material and final product can be more easily transported between each area and therefore closer. This is even obviously beneficial to large overseas companies, which may hold many branches located in different countries. Thanks to globalization, they have more freedom to set their factories in countries with cheaper labor and sell products in other markets. One of the examples is Nike. It used to built factories mainly in China before and put the products in Europe and America. However, because labor is becoming more expensive in China, such factories are gradually being transferred to like Indonesia, Vietnam etc. This leads to many unemployed in the last cooperate country . Oppositely China is involved in this international market more as purchaser. It can be obviously found that open market due to globalization brings more welfare and flexibility to all stakeholders because of free trade. Critics of globalization have argued that the process has exploited people in developing countries, caused massive disruptions to their lives and produced few benefits in return. ” For many of the poorest least-developed countries the problem is not that they are being impoverished by globalization, but that they are in danger of being largely excluded from it.” (Pre- sessional academic English course, page53)
Globalization also plays a significant role in people's life. Vehicles and communication technology, such as bus, car, train, plane, internet and mobile phone, are shrinking the world. They all make things convenient to people. Simply take a Renault car for example; it is absolutely a French brand. However it is highly possible that the key part like motors are provided by American company, the tires are provided by Bridgestone, which is owned by Japan. At the same time, it can be assembled by Vietnamese worker and then sold on Korean market. Who does on earth the car belong to? As one of negative consequences of modern booming industry, environmental pollution is becoming another globally bothersome issue. To deal with it, collective efforts and cooperation between countries are called for.
Another hot topic could be that someone believes that present terrorism activities and local conflicts are caused by increasing globalization. We cannot deny that during globalization, conflicts indeed exist between different races, different religions. However, globalization is also an effective way to contract with all the countries to get rid of these conflicts and terrorism. Country safety and international cooperation against terrorism has been put to a significant level for most countries. For instance, China has joined the international community in condemning and fighting terrorism and is playing a constructive role in the international counter-terrorism struggle. In accordance with China report that "In June 2001, China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan founded the Shanghai Cooperation Organization (SCO). As we all know, it issued the Shanghai Declaration, which clearly said that the members would cooperate to fight against international terrorism, ethnic separatism and religious extremism.”
Good transnational corporations have upper-level methods of operation and management, which are widely used in the world. Frenchman Henri Fayola considers management to consist of five functions: planning, organizing, leading, coordinating, controlling. Organization is a significant part of management. As a famous global international organization -- the World Trade Organization (WTO)mediate trade disputes and set up a uniform platform of trading. When advanced technology and equipment are imported, we must run enterprises with advanced management and operation techniques and set attainable quotas. According to Hitt Michael, "Strategic management cases are produced from competitiveness and globalization." Some chain stores run well all over the world, such as hamburger chains—KFC, McDonalds, supermarket
chains-Carrefour, Wal-Mart. There is a lot of famous name brand. For instance, Louis Vuitton, Gucci, Armani, Chanel, Cartier. Why do these groups run well all over the world ? Because they have highest standards of administration and marketing. As a renowned and successful Chinese brand, Haier’s management philosophy and mmodel is clearly exceptional." Haier's global branding process combines the best in eastern and western management thinking to create a foundation for further innovation. "They insist in actively and effectively using foreign capital, emphasize bringing in advanced technologies, modern managerial expertise and specialists, and support multiple forms of cooperation. Management in business and human organization activity, in simple terms means the act of getting people together to accomplish desired goals. Haier's Individual Goal Combination management system means that every employee is an independent and innovative SBU with the goal of achieving primacy in the marketplace. As the Chief Execute Operator Zhang Ruimin management innovations have been widely recognized by international management institutions. Haier's "Market Chain" management was also included in the European Union's case study database. Haier's Individual-Goal Combination management system is currently assisting companies around the world to better manage their storage and due receivable systems.
Globalization is not incidental to our lives nowadays, but oppositely the developing tendency worldwide. Basically it penetrates every aspects of daily life along with apparent benefits. Despite of some harmful impacts it brings, they can also be realized and solved by cooperation of all nations. That is to say, human beings can make use of globalization to serve people better instead of suffering. Globalization is even vital to management operation besides above mentioned aspects. Strategies are always made out of the consideration of global perspective and haves to be accustomed to globalization requirement in order to achieve success in competitive market.
References
1.Williamson (1998) ,"Globalization leads to increase the gap between poor and rich.”
2.<http://www.imf.org/external/pubs/ft/survey/so/2007/RES1010D.htm>
viewed in August 23,2008
3.<http://www.china.com.cn/baodao/china/htm/2002/2002-8/8-2.htm>
viewed in August 25,2008
4.“Presessional academic English course”,page53, London, press: London metropolitan university
5.Dunod,(1996 ), “Administration industrial organization”
6.Hitt Michale.A.(2008), “ Strategic Management : Competitiveness and Globalization”, Publisher: South-Western Pub
7.<http://english.peopledaily.com.cn/dengxp/vol2/text/b1230.html>
viewed in August 30,2008
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