Globalisation

GLOBALISATION. It’s a big word with an even bigger effect in the World we live in today. I do not need any form of conviction or evidence to state that what the world is today is hugely due to Globalisation. A revolutionary word in my opinion. So what is Globalisation? Well a simple check on Google will give you the definition, ‘The term Globalization refers to processes of international integration arising from the interchange of world views, products, ideas, and other aspects of culture.’ Essentially, globalisation is a way of making the world closer. News travels faster, people travel faster; we are more connected with the world now then ever before.

In an organizational context, globalisation is the interconnectedness and fusion of a company and culture. It allows for increase trade flows from all over the world and gives more opportunities to organisations to grow and expand in places previously thought difficult to succeed in. There are a few key drivers of Globalisation, namely, Political or Economical, Technological and lastly Markets and Costs.

Political and Economical

This becomes a factor when there is a removal of trade barriers and giving businesses the liberty to make their own decisions without the government controlling them. One major example would be Neo-Liberal Economics. Neoliberalism supports economic liberalizations, free trade and open markets as well as enhancing the role of the private sector in the current day and age. However there are many critics for Neoliberalism as the critics feel it is destroying welfare programs for the poor and sick, as well as attacking the rights of labour, specifically for low skilled immigrant workers, who are usually over worked and under paid. My opinion is that Neoliberalism should exist, however there should be a balance to ensure that there is still sufficient amount of resources to run welfare programs and that workers are fairly treated.

Technological

It is due to the rapid advancements in technology in communication and transport that has driven the rate of globalisation up. If we were to go to the early signs of globalisation, it would be when the Silk Road existed. People from all over Western Europe to India and China and even Africa would travel by foot, horses or camels to carry their goods and messages. This process could take months and years at times but today, we have container ships, cargo planes, bullet trains, emails and phones among others to speed up this process exorbitantly. Trading has never been easier. If I wanted a jacket only found in Africa, with the right price, it would magically appear at my doorstep within 24 hours. Communication advances enables business to be run and controlled despite you not being in that country physically. Such is the wonder of globalisation.  

Markets and Costs

A company might be saturated in their own country hence organizations looks into broadening their prospective and branching into overseas market. It might contribute as a boost in sales. Alternately, lower costs are a common ideology to move an organization abroad if it benefits them financially. An example would be the vast majority of clothes companies, Puma, Zara, Primark Etc., that shift their production like to countries like India and China where the labour costs are cheaper. Even more specialized work is done in cheaper countries like India. The video below shows an example. 

Material Links: 

1. http://www.corpwatch.org/article.php?id=376
2. http://en.wikipedia.org/wiki/Globalization
3. http://folk.uio.no/daget/neoliberalism.pdf