The Phenomenon of Globalization Essay - 4454 Words

I. INTRODUCTION The fast pace of globalization is creating serious issues and questions for many developing countries to deal with, such as should they join a free trade bloc or not? What will they gain by being a member and what will they lose? Since the creation of the European Union, first formed by 15 Western European countries and most recently expanded to 10 additional European nations, have influenced many countries around the world to follow the European example and worked together in order to expand their marketplace and increase economical and political power. NAFTA, Mercosul, CAFTA, CARICOM, and CAN are good examples of such economic blocs. The North America Free Trade Agreement (NAFTA) is formed by United States,†¦show more content†¦Corporations such as Coca-Cola, Ford, McDonald’s, Gillette, GM, Mitsubishi, and many others looked for different markets outside their country’s borders in order to increase their profitability. These kinds of corporations are called transnational corporations, and they have tremendous power and influence on the world’s economy. As pointed out by the nonprofit organization CorpWatch Holding Corporations Accountable (http://www.corpwatch.org/), the 300 la rgest transnational corporations in the world control one quarter of the whole world’s productive assets, which is worth US $5 trillion. Also, of the 100 largest economies in the world, 51 are corporations; only 49 are countries (based on a comparison of corporate sales and country GDPs). The influence of these corporations is driving a phenomenon called globalization. What is Globalization? Globalization is the creation of international rules by governments and corporations in order to facilitate and regulate trade between nations. The goal is to ease the international trade laws, which will clear the way for these transnational corporations to exchange goods and services between two or more countries, thereby increasing their profitability. There are three major categories of globalization: Corporate Political, Economic, and Technological. Political Globalization Transnational Corporations are drivingShow MoreRelatedThe Phenomenon of Globalization1498 Words   |  6 PagesA precise definition of the concept of globalization has not been formulated despite the efforts of many experts in a variety of disciplines. Nevertheless, there is little doubt that globalization has begun to take effect throughout the world and that as it develops it has begun to transform the worlds economy, its social structure, and political balance (Roundtree, 2006). How pervasive these changes may be remains to be seen but the fact that they are taking place cannot be denied. As indicatedRead MoreUnderstanding the Globalization Phenomenon1492 Words   |  6 Pagespossible to understand the nature of globalisation? This is a question that has led to fervent debates, and has confounded sociologists in their pursuit to explain the mechanics of globalisation (Machida 2012). Globalisation is the most dominant social phenomenon that has shaped social interactions around the world in the modern age (Ritzer Ryan 2002). In an age where people socialise beyond their immediate communities, where a Japanese person can purchase an American product that’s made in China, andRead MoreGlobalization Is A Complex Phenomenon3186 Words   |  13 Pages A fervent criticism on corporate behavior and the failure of politics, have accused the process of globalization of worsening existing global inequalities and being responsible for growing levels of poverty. 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Its concept of impact and measurement is not universal, but vary according to specific interests. In other context, globalisation can be understood as the process whereby social systems and local economies are experiencing a rapid rise in their reciprocal interdependence and sphere of action (Marina, Lewis Hugo, 2009). However, the globalisationRead MoreGlobalization Is An Increasingly Present Phenomenon, Which1007 Words   |  5 PagesGlobalization is an increasingly present phenomenon, which influences almost everyone’s life to a certain extent. Our world is more connected than ever, and not just from an economic point of view, but from social, political, technological, and cultural as well. Globalization can be defined, analysed, tackled many ways, but this essay seeks to briefly define globalization, introduce the convergence - diver sity debate, and examine the different types of organizational strategic perspectives in China