Globalization – International BusinessSocial changes are taking place rapidly and it was not until recent that the words global, globalizing, globalization came into use more often and has made globalization increasingly omnipresent (Ritzer, 2009). The concept refers to the compression of the world and the intensification of consciousness of the world as a whole; which surpasses the physical borders rendering trade in the form of international business and free trade. Also, nations are moving away from self contained economies towards a wider prospect of interdependent and integrated system of trade (Hill, 2007).
According to Ritzer (2007), Globalization is an accelerating set of processes involving flows that encompass ever-greater numbers of the world’s spaces and that lead to increasing integration and interconnectivity among those spaces. In simple terms globalization can be said as the coming together of different worlds and getting connected over distances or it is the advancement due to human co-operation across national boundaries. Burnes (2009) highlights his views on the diversion of approaches to the practise of change management that have emerged due to globalization; now the emergent approach has taken over from the planned approach as a dominant approach to change. He also claims globalization as the single biggest challenge organizations’ face today. Therefore, it can be said that globalization is the most important change that has taken place in human history and we are living in the ‘global age’ (Bauman, 2003). All organizations in a bid to survive and succeed must develop global strategies. In incorporating today’s global realities into practise, Global organizations have to adapt to approaches in managing research and development and in areas concerned to production, marketing and finance to fulfil the consumer needs, who are quality sensitive and time-bound towards the products and services they consume. Despite the different views and definitions on globalization; Reich (1998) points out the driving forces behind globalization as:
The growth of international competition;The fall of communism;Economic liberalization;The removal of trade barriers;The advent of new and fast paced communication technologies.World economists have not written much about globalization, until lately in the 1900’s saw a global change and movements towards greater free trade across the globe. Thus, globalization becoming a focal point of research in the world economy and much impetus has been placed on globalization in international trade. Also, with the global trends changing gradually, it is vital to know the theories persisting and understanding why these have been successful in shaping the economic policies of so many nations. This has enabled the
n: “Internationalism of Nations: An Analysis of the United States” that was published in The American Economic Review, April 21, 1910. The article provides a summary of factors in a global economic system. Topics included:
’ The concept of ‘Internationalism’‼ that is in short and a description of international society.
‾The concept of ‘development’ ‹ which encompasses the emergence and development of different economic powers and the development of human capital.‹ The rise and fall-out in global economic institutions, including the global financial system.
‡The growing reliance on the United States, under the control of the US government, to generate and maintain economic growth,‼ with a growing number of countries being willing to provide these investments to the US.
‡The US as the global economic driver for the global economy in the 21st century, and the USA as the source and the driving force of the rest of the world’s economic and social transformation.‹ The importance of being of a global character, as in the United States which leads.
‡The growth of trade barriers on the one hand, and increasing international competition on the other.‹ It must be said that the development of globalization, the fact that nations cannot freely trade with each other, and the international character of the global movement led to a shift of emphasis in thinking, towards less dependence and more cooperation among the international organizations and peoples on one another.
‡Globalism and Globalization in International Perspective: An Analysis of the World Economy by Stephen Shafer and David Eby. This is a comprehensive review of global factors that have helped to shape the economic system of the world. The text states that globalism has been defined and shaped in many key ways. It has shaped the economic system of the world around the world, and has been defined through an ongoing and sometimes very complex negotiation process including:‡a
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‡The growth of international competition—and the fall of Communism—from a focus on the United States›
‡the expansion of trade barriers on the one hand, and increasing international competition on the other‹ and increasing global economic institutions and the emerging globalization of trade. ‡Globalism and Globalization in International Perspective: An Analysis of the World Economy by Stephen Shafer and David Eby
The ‘International’ in Globalism and Globalism: A Report from the International Monetary Fund
N: “Why are so many people confused about the importance of international