Global Business Environment - Globalization

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Introduction

In simplest of terms globalizations happens when economies of different countries around the world are dependent on each other for various resources be it tangible or intangible. Due to globalization the new technologies have been integrated into different countries. It is a means by which borders can be opened and countries can trade with each other which would not have been possible otherwise. Moreover globalization encourages countries to have good relations with each other because in the end both will profit from trade. Due to globalization information is easily transferred throughout the world and services are performed from one country for another country like telephone calls from American citizens are taken by Indian citizens through call centres. Due to globalization international associations like World Bank, Red Cross, Cry, United Nations and World Trade Organization can assist countries in need throughout the world and also to check the trade practices of various countries and fine those countries which are taking part in unfair trade practices.

Modern globalization only started in the 1960’s when the third world countries of Africa and the developing countries of Asia started to welcome big multi-national companies and wanted them to invest in their country. The MNC gladly welcomed this and started to move in these countries and introduced these countries with new technologies and products. Moreover the MNC also brought with them the culture of their home countries which was later merged with that of the host country. An example of this is IBM and Coca Cola.

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Negative Influence of Globalization

Globalization has had a negative influence on the world economy recently because of the worldwide inflation. Due to inflation of the western economies the rest of the world is also suffering because all the economies are tied together due to globalization and they depend on each other, if one has a negative impact then it will also affect the others. The fight against terror in Iraq and Afghanistan has also increased the price of oil throughout the world and this had a bad impact especially because recently the demand for oil from India and ...

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