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Define Globalization - Lecture notes 1

Purposive Communication (Polytechnic University of the Philippines)

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Define Globalization:
Globalization is a process of interaction and integration among the people,
companies, and governments of different nations, a process driven by international
trade and investment and aided by information technology. This process has effects
on the environment, on culture, on political systems, on economic development and
prosperity, and on human physical well-being in societies around the world.
Technology has been the other principal driver of globalization. Advances in
information technology, in particular, have dramatically transformed economic life.
Information technologies have given all sorts of individual economic actors—
consumers, investors, businesses—valuable new tools for identifying and pursuing
economic opportunities, including faster and more informed analyses of economic
trends around the world, easy transfers of assets, and collaboration with far-flung
partners.
Globalization is deeply controversial, however. Proponents of globalization
argue that it allows poor countries and their citizens to develop economically and raise
their standards of living, while opponents of globalization claim that the creation of an
unfettered international free market has benefited multinational corporations in the
Western world at the expense of local enterprises, local cultures, and common people.
Resistance to globalization has therefore taken shape both at a popular and at a
governmental level as people and governments try to manage the flow of capital, labor,
goods, and ideas that constitute the current wave of globalization.
To find the right balance between benefits and costs associated with
globalization, citizens of all nations need to understand how globalization works and
the policy choices facing them and their societies.

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Entrepreneurship Among Professionals and Its Importance to

Local and Global Company

Entrepreneurs are often thought of as national assets to be refined, motivated

and remunerated to the greatest possible extent. Entrepreneurs can change the way
we live and work. If successful, their revolutions may improve our standard of living.
In short, in addition to creating wealth from their entrepreneurial ventures, they also
create jobs and the conditions for a flourishing society. Entrepreneurship capital is
defined as "a region's endowment with factors conducive to the creation of new
businesses" and it exerts a positive impact on the region's economic output.

Regions with a higher level of entrepreneurship capital show higher levels of output
and productivity, while those lacking entrepreneurship capitals have a tendency to
generate lower levels of output and productivity.

The impact of entrepreneurship capital is stronger than that of knowledge capital.

Evidence indicates that entrepreneurial capital plays a very important role in the
production function model presented.

The following are six reasons why entrepreneurship capital is important to the
economy:

1. Entrepreneurs Create New Businesses

Path-breaking offerings by entrepreneurs, in the form of new goods and services,

result in new employment, which can produce a cascading effect or virtuous circle in
the economy. The stimulation of related businesses or sectors that support the new
venture add to further economic development.

For example, a few IT companies founded the Indian IT industry in the 1990s as a
backend programmers' hub. Soon the industry gathered pace in its own programmers’
domain. But more importantly, millions from other sectors benefitted from it.

Businesses in associated industries, like call centre operations, network maintenance

companies and hardware providers, flourished. Education and training institutes
nurtured a new class of IT workers offering better, high-paying jobs. Infrastructure
development organizations and even real estate companies capitalized on this growth
as workers migrated to employment hubs seeking new improved lives.

Similarly, future development efforts in underdeveloped countries will require robust

logistics support, capital investment from buildings to paper clips and a qualified
workforce. From the highly qualified programmer to the construction worker, the
entrepreneur enables benefits across a broad spectrum of the economy.

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2. Entrepreneurs Add to National Income

Entrepreneurial ventures literally generate new wealth. Existing businesses may

remain confined to the scope of existing markets and may hit the glass ceiling in terms
of income. New and improved offerings, products or technologies from entrepreneurs
enable new markets to be developed and new wealth created.

Additionally, the cascading effect of increased employment and higher earnings

contribute to better national income in form of higher tax revenue and higher
government spending. This revenue can be used by the government to invest in other,
struggling sectors and human capital.

Although it may make a few existing players redundant, the government can soften
the blow by redirecting surplus wealth to retrain workers.

3. Entrepreneurs Also Create Social Change

Through their unique offerings of new goods and services, entrepreneurs break away
from tradition and indirectly support freedom by reducing dependence on obsolete
systems and technologies. Overall, this results in an improved quality of life, greater
morale and economic freedom.

For example, the water supply in a water-scarce region will, at times, force people to
stop working to collect water. This will impact their business, productivity and income.
Imagine an innovative, automatic, low-cost, flow-based pump that can fill in people's
home water containers automatically.

Such an installation will ensure people are able to focus on their core jobs without
worrying about a basic necessity like carrying water. More time to devote to work
means economic growth.

For a more contemporary example, smartphones and their smart apps have
revolutionized work and play across the globe. Smartphones are not exclusive to rich
countries or rich people either. As the growth of China's smartphone market and its
smartphone industry show, technological entrepreneurship will have profound, long
lasting impacts on the entire human race.

Moreover, the globalization of tech means entrepreneurs in lesser-developed

countries have access to the same tools as their counterparts in richer countries. They
also have the advantage of a lower cost of living, so a young individual entrepreneur
from an underdeveloped country can take on the might of the multi-million-dollar
existing product from a developed country.

4. Community Development

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Entrepreneurs regularly nurture entrepreneurial ventures by other like-minded

individuals. They also invest in community projects and provide financial support to
local charities. This enables further development beyond their own ventures.

Some famous entrepreneurs, like Bill Gates, have used their money to finance good
causes, from education to public health. The qualities that make one an entrepreneur
are the same qualities that motivate entrepreneurs to take it forward.

5. The Other Side of Entrepreneurs

Are there any drawbacks to cultivating entrepreneurs and entrepreneurship? Is there

an “upper limit” for the number of entrepreneurs a society can hold?

Italy may provide an example of a place where high levels of self-employment have
proved to be inefficient for economic development. Research reveals that Italy has in
the past experienced large negative impacts on the growth of its economy because of
self-employment. There may be truth in the old saying, "too many chefs and not
enough cooks spoil the soup."

6. The Role of States

Regulations play a crucial role in nurturing entrepreneurship, but regulation requires a

fine balancing act on the part of the regulating authority. Unregulated entrepreneurship
may lead to unwanted social outcomes including unfair market practices, pervasive
corruption, financial crisis and even criminal activity.

Paradoxically, a significantly high number of entrepreneurs may lead to fierce

competition and loss of career choices for individuals. With too many entrepreneurs,
levels of aspirations usually rise. Owning to the variability of success in entrepreneurial
ventures, the scenario of having too many entrepreneurs may also lead to income
inequalities, making citizens more – not less – unhappy.

The interesting interaction of entrepreneurship and economic development has vital

inputs and inferences for policy makers, development institutes, business owners,
change agents and charitable donors. If we understand the benefits and drawbacks,
a balanced approach to nurturing entrepreneurship will definitely result in a positive
impact on economy and society.

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Question: How do you apply your courses in this aspect?

As a Medical Laboratory Scientist Student (MedTech), I could say that

globalization has been an integral section of the society where everyone easily
expresses their thoughts or notions no matter what language they used in global terms.
The world is getting more connected than ever. It is growing interdependence of the
world’s economies, cultures, and populations, brought about by cross-border trade in
goods and services, technology, and flows of investment, people, and information.
Hence, in applying this aspect to my chosen career, it brought me to the advances
and faster trade of information that lets me to do greater more! I got to invest
automatically for the betterment and more inclusive education to prepare for
tomorrow’s economy. It allows my ability to move and communicate easily with others
all over the world in order to conduct or implement business from local to international.
Arises of medical devices is greatly impacted by the product regulatory approval
system, health technology assessment, and reimbursement system. Considering the
current trend of evidence-based medicine and value-based pricing, efforts to generate
clinical evidence strengthened even further which literally a great help.
Public health policy and practice have been increasingly challenged by
globalization, even as global financing for health has increased dramatically. This
discusses globalization and its health challenges from a vantage of political science,
emphasizing increased global flows (of pathogens, information, trade, finance, and
people) as driving, and driven by, global market integration. This integration requires
a shift in public health thinking from a singular focus on international health (the higher
disease burden in poor countries) to a more nuanced analysis of global health (in
which health risks in both poor and rich countries are seen as having inherently global
causes and consequences).
Nevertheless, since technology moves as a tool to make it possible to
integrated the dots into a successful pattern, globalization makes sense. Assure also
that the healthcare system does not impede workers (like me) from finding new jobs
or cause significant financial hardship.

Diana Jane Ceniza

Future RMT, M.D

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