Globalization is the growth of companies and businesses to a global or worldwide scale. This act of globalization can be dated as far back as Canada’s independence, as far back as the United States’ independence and probably even further back than that. If globalization has been going on for this many years then why do some people still feel obligated to purchase goods and services that have been manufactured in their native country? Is it because of preference or style?
Well it could be, but more often than not, it is because the consumer feels the need to stay loyal to their country and only purchase goods that were manufactured within their own borders. It is easy to understand why someone might feel this way because they want to support the local businesses. However, the truth is, no matter how hard we might try, it is nearly impossible to escape the boundaries of globalization! So why don’t people just start to embrace it? Globalization is, and has, changed the way business is being done in a good way.
Globalization creates competition within different markets throughout the world, and with more competition between companies and businesses comes more innovation. Not only does globalization inspire technology to advance but it is a much more convenient and efficient way of doing business and it is responsible for promoting peace between nations. Without competition within industries, there would be no need for companies and businesses to innovate and create new products and technology to the extent that they do in present day.
Thankfully for globalization, innovation is something that has a strong presence in modern day. When companies decide to expand their products and services into different markets around the world, they pose a threat to other companies native to those countries. When the other companies see this happening they have no choice but to do the exact same and expand. This makes the companies compete against one another to be at the top of the market and to have the best product and customer base there is.
Now that globalization has such a huge presence today, the consumers around the world become much more demanding (n2growth. com). The battle between technology powerhouses, Apple and Samsung, is a great example of globalization and consumer demand. Samsung originates in South Korea and ever since it started to become more and more of a presence as an international corporation in the 1990s and started to produce more products that focused on electronics, engineering and chemicals, it became more of a threat to other technology corporations (Wikipedia).
Apple never really posed as a threat to Samsung however because they mainly specialized in computers, while Samsung would make televisions, home appliances and cell phones until 2007 when Apple came out with their very first cell phone, the “iPhone” (apple-history. com). As the Apple market started to rise up and spread to all corners of the world with their new “iPhone”, they certainly began to scare a few of the other major technology companies. The iPhone was something people knew about all over the world. You could make calls, text, play games, download thousands of applications and the list goes on and on.
With the success of the first iPhone, (revenue increasing by $1. 4 billion in the following quarter compared to the year-ago quarter, with 40% of the quarter’s sales being international), other companies would be forced to manufacture products which had similar qualities as the iPhone in order to compete (apple. com). Nowadays, we are into the 5th generation of iPhones. Samsung has produced numerous versions of the Galaxy S 3 and the Galaxy Note 2. People tend to ask why these companies introduce new products so often. The answer is simple, because they have to in order to compete in the global market place.
Another important role of globalization is that it makes business much more convenient and efficient for some companies. Free trade exists so that it makes business easier between different countries and it is meant so that all countries that are participating in the trade benefit. All countries have aspects to them that they can do better than other ones, when it comes to the business side of things, some countries are able to produce items that others cannot, therefore, the countries that lack the ability to create certain products will turn to the other ones for help. A great example of this happening is within today’s automobile industry.
Although something may be labelled as an “American”, “Japanese” or “German” car, most of the time, the actual parts of the car are manufactured in many different places around the globe, simply because some things are easier and more economical for some countries to manufacture than others. In today’s day and age it is not uncommon to see a Toyota Camry (Japanese Company), which has nearly 75 percent of their care being manufactured in North America. This can sometimes be the same case for American companies like Chrysler, because this “Japanese” car is actually more American than an American car itself (boston. om). Although some people may argue that this is an un-patriotic act that is being committed by the auto companies it is really just a normal way of doing business in the current market. The United States has the auto parts that Japan wants and Japan has the auto parts that the States want, it is as simple as that. There is nothing wrong about it, it is just a matter of what product is easy and efficient for each country to make and what is not. Our country should not have to spend more money to produce things that we can buy more cheaply from a different country.
Finally, one of the other very important impacts of globalization on the rest of the world is the promotion of peace within nations. With globalization and the openness of trading around the world, it allows the countries to communicate with each other and share more things with one another. As mentioned in the previous paragraph, some countries, in fact many rely on other countries to provide the products that they cannot produce as easily. In return, they do the same in exchange for money or other products. Globalization has the ability to promote peace through two main elements.
One of which from the increased advantage that peace holds for bilateral interdependence, meaning that when there is greater peace it is much easier to trade goods with other countries. The other comes from countries integrating into the global market. It does not really matter the size of trade with each partner. All that matters is that each country gets what they need so they will strive for more peace and less conflict in order to get what they want. Following the Second World War, world trade has increased the GDP of the entire world from 18% in 1950 to 52% in 2007 which is a rapid increase in a time span of nly 57 years. In this time frame, the amount of countries involved in world trade also has increased by a significant amount (voxeu. org). War and conflict is unfortunately something that will most likely be around forever because it is nearly impossible for every country on earth to cooperate with one another. Needless to say, globalization has had a positive impact on world peace because we have not seen many wars quite as big as WWI and WWII from the 1950’s to present day. To conclude, globalization is something that has been around for a long period of time.
It will continue as long as it does its job, which it seems to be doing right now. Without the strong presence of globalization, it would not be necessary for our technology industries (that we all know and love) to create and produce innovative products to the extent that they do. Technology would not be where it is today if those companies had not made a geographical foot print in many places around the world. The list goes on and on about what is good and what is bad about globalization but it definitely benefits our economy both on a national and global scale.
Just take a look at where it has taken us and be certain that it will continue to do so for years to come. Annotated Bibliography 1. Myatt, Mike. “The Impact of Globalization on Business. “n2growth. com. n2growth. com, 22 2006. Web. 2 Dec 2012. <http://www. n2growth. com/blog/the-impact-of-globalization-on-business/>. In this article/blog post, the man who wrote it was basically talking about some of his experiences in business with different countries and how globalization affects the way business is being done.
A large portion of what he wrote about was about how in this day and age, consumer demand has changed in a way that they become even more demanding because of the advances in technology and production, so businesses need to produce more in order to keep them happy. This article helped me out a lot because this part of consumer demand was what I was looking for when talking about competition between Apple and Samsung and how there is a high demand for these products which is why they innovate so much. . Hyun Pyun, Ju. “Globalization Promotes Peace. ” voxeu. org. www. voxeu. org, 21 2009. Web. 4 Dec 2012. <http://www. voxeu. org/article/globalisation-promotes-peace>. This article focused mainly on how globalization protects countries and promotes peace around the world. The author wrote about how and why countries become more peaceful when they trade globally with each other because they need certain products and they want to be on good terms with all other countries.
He also wrote about how the likelihood of global conflict decreases and explained some key percentages that I used in my essay about how the world GDP percentage has changed dramatically from the end of WWII to present day. This article was a great source for learning about how globalization promotes peace and how it has promoted it for years following the Second World War. 3. Mateja, Jim. “Made in America? Hard to tell. ” boston. com. The Boston Globe, 24 2006. Web. 4 Dec 2012. <http://www. boston. com/cars/news/articles/2006/09/24/made_in_america_hard_to_tell/? page=full>.
This article from The Boston Globe focused on automobile production. Basically they wrote about how the American and Japanese cars as we see them might actually be produced in different countries more so that produced in their own. They gave some great percentages of how companies like Toyota, have cars that are actually more American than that of some Chrysler models because of where most of the auto parts were produced. This article helped me out a lot in the explanation of where some things come from and how countries rely on each other to produce products that they cannot produce quite as easily. It clearly explains why globalization is an easier and more efficient way of doing business.
1. . “Why trade is good for you. ” economist. com. economist. com, 01 1998. Web. 4 Dec 2012. <http://www. economist. com/node/605144>. 2. . “Apple Reports Fourth Quarter Results . ” apple. com. Apple Inc, 22 2007. Web. 4 Dec 2012. <http://www. apple. com/pr/library/2007/10/22Apple-Reports-Fourth-Quarter-Results. html>. 3. . “iPhone. ” apple-history. com. N. p. , 26 2012. Web. 4 Dec 2012. <http://apple-history. com/iphone>. 4. . “Samsung. ” Wikipedia. Wikipedia, 04 2012. Web. 4 Dec 2012.