GLOBALIZATION

GOAL
To know what globalization is and its benefits

AIM
To create more web sites/apps, which teach more on globalization

INTRODUCTION
According to https://education.nationalgeographic.org/. Globalization is a term
used to describe how trade and technology have made the world into a more
connected and interdependent place. Globalization also captures in its scope the
economic and social changes that have come about as a result. It may be pictured
as the threads of an immense spider web formed over millennia, with the number
and reach of these threads increasing over time. People, money, material goods,
ideas, and even disease and devastation have traveled these silken strands, and
have done so in greater numbers and with greater speed than ever in the present
age.
he Silk Road, an ancient network of trade routes across China, Central Asia, and
the Mediterranean used between 50 B.C.E. and 250 C.E., is perhaps the most well-
known early example of exchanging ideas, products, and customs. As with future
globalizing booms, new technologies played a key role in the Silk Road trade.
Advances in metallurgy led to the creation of coins; advances in transportation led
to the building of roads connecting the major empires of the day; and increased
agricultural production meant more food could be trafficked between locales.
Along with Chinese silk, Roman glass, and Arabian spices, ideas such as Buddhist
beliefs and the secrets of paper-making also spread via these tendrils of trade.

Unquestionably, these types of exchanges were accelerated in the Age of

Exploration, when European explorers seeking new sea routes to the spices and
silks of Asia bumped into the Americas instead. Again, technology played an
important role in the maritime trade routes that flourished between old and
newly discovered continents. New ship designs and the creation of the magnetic
compass were key to the explorers’ successes. Trade and idea exchange now
extended to a previously unconnected part of the world, where ships carrying
plants, animals, and Spanish silver between the Old World and the New also
carried Christian missionaries.

The web of globalization continued to spin out through the Age of Revolution,
when ideas about liberty, equality, and fraternity spread like fire from America to
France to Latin America and beyond. It rode the waves
of industrialization, colonization, and war through the eighteenth, nineteenth, and
twentieth centuries, powered by the invention of factories, railways, steamboats,
cars, and planes.

LIMITATIONS

According to https://www.omnipresent.com Worker Exploitation

‍ any companies in developed countries have outsourced their production

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or services to developing countries, seeking to cut costs through the
creation of cheaper goods. While this has generally been beneficial for
developing economies, local workers are still exposed to high degrees of
exploitation. The International Labour Organization (ILO) – an agency
under the United Nations – has been working to set international standards
to protect workers everywhere, but this is hard to enforce. In developing
countries, companies have also been able to make increasingly exploitative
demands of their workers as they are able to source cheaper labour
elsewhere.

On the other hand, more and more consumers are demanding

organizations to create products and services that are ethical, sustainable,
and affordable. This is one of the most notable cons of modern
globalization affecting businesses today.

Job Loss
‍ ne of the most debated negative effects of globalization is the loss of
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jobs. This is particularly the case in developed countries, such as the
United States, where many services and unskilled labor have been
outsourced to developing countries. As a result, many locals have lost their
jobs or been forced to accept lesser wages and poorer working conditions.
Though it is the job of governments to protect the local workforce and
create favourable business conditions for companies, you will still need to
assess how you want your business to work around this challenge.

High Investment

‍ lobalization and international expansion are generally very expensive

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endeavours. This is one of the most deterring disadvantages of
globalization. It requires businesses to invest a lot of their resources into
designing and implementing an effective globalization strategy. Setting up a
company or presence elsewhere, paying taxes, hiring, signing contracts
with new partners, scouring the customer base - all these things require
mountains of research, capital, and time. Not all companies will feel
comfortable doing this, especially smaller businesses or those just scaling
up globally.

Environmental Degradation

Sadly, the environment also suffers as a negative effect of globalization. As

great as increased flow of goods and knowledge are for people and the
economy, the underlying business activities adversely affect the
environment. Global trade and transportation networks, along with
increased market demand, mean more use of fuels that contribute to a
higher exertion of greenhouse gases. Planes, ships, and trucks
transporting goods all over the world are harmful for the atmosphere and
affect local ecosystems. More demand also means more production, again
causing more fuel and raw materials to be used up. Interestingly, remote
working can help businesses save on environmental costs, but remote
working alone won’t solve the environmental challenge of globalization.

Taxes Across Borders

‍ axes can be a nightmare both for employees and for businesses. Different
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countries or states have their own tax authorities and unique regulations on
what taxes need to be paid, how, when, and to whom. One of the big ones
to watch out for is permanent establishment risk, which makes your
company liable for paying corporate taxes. Many regional and national
governments or organisations are now working together to prevent
companies from finding loopholes so as not to pay corporate taxes. You will
need to do your research in order to stay on the right side of the law
wherever your business operates.

Legal Compliance for Employers

‍ lobal employers must also consider how to employ people legally across
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all the different countries they’re based in. All countries have their own
labour law, which covers things like working hours, types and amount of
paid leave, termination rights, intellectual property rights, salaries, benefits,
and social security. You will need to be aware of the labour code of each
jurisdiction where your employees are based so you can employ them
compliantly. This is a massive administrative task that requires a thoughtful
and responsive strategy.

Strength

According to https://www.omnipresent.com. Globalization can be

extremely rewarding for growing businesses. But it’s also hugely beneficial
for the general development of the global economy. By tapping into the
global market and expanding your customer base, you bring people and
products closer together. Discover some of the immediate benefits of
modern globalization for your organization.

Access to New Markets

‍ ne of the major advantages of globalization is that it provides access to

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new or different markets for international business. With bi- and multilateral
trade agreements, multinational corporations can operate in multiple
countries and jurisdictions. This means reaching more customers, gaining
more and better market insights, and building your brand on a global scale.

Product Development and New Revenue Streams

‍ y accessing the global market, you develop your products and services in
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new ways. When branching out to a different country, businesses are often
required to adapt their offerings to meet local demand. While this may
seem like more work, it is a great opportunity for innovation. By building
successful products and services, and a solid customer base, you can
increase your revenue streams beyond national or state borders.

Sharing Knowledge, Technology, and Culture

Another one of the brilliant effects of globalization is that sharing has

become the norm. Knowledge, information, technological advancements,
and cultural values are being shared across the globe – and business
practices are no exception. While we are far from a multicultural utopia of
global businesses, sharing and creating global partnerships has never
been easier.

Developing Universal Standards

‍ hile this may sound like whitewashing a complex issue, globalization has
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had the effect of helping set some universal standards. Through knowledge
sharing, basic industry standards have been set and other international
bodies are working to set standards for labour and employment law, as well
as tax regulation. The Organisation for Economic Cooperation and
Development (OECD), for example, drafted the Model Tax Convention in
2017 to help authorities and businesses understand when they are liable to
pay corporate taxes and how they can prepare when expanding
internationally.

Access to a Diverse Talent Pool

Taking your pick of job candidates from an incredibly diverse talent pool is
a benefit of globalization with immediate rewards. If your company is hiring
remotely, you can offer employment opportunities according to skillset or
behaviours like adaptability, regardless of background or where candidates
are based. Companies looking to hire for their offices or foreign
subsidiaries are also able to find talent that will help them develop, change,
and grow as a company more broadly. Each new diverse employee brings
a wealth of new perspectives and possibilities to a business.

A Diversified Workforce and Workplace Culture

A diverse talent pool not only leads to a diverse workforce, but also has
significantly positive effects on workplace culture. While some employers
are concerned about cultural differences affecting productivity, internal
communication, and collaboration, a solid hiring strategy and inclusive
company culture can do the trick. Focus on building an open company
culture, where different perspectives are championed and inclusive
behaviours are rewarded.

ACTION

Since ancient times, humans have sought distant places to settle, produce, and
exchange goods enabled by improvements in technology and transportation. But
not until the 19th century did global integration take off. Following centuries of
European colonization and trade activity, that first “wave” of globalization was
propelled by steamships, railroads, the telegraph, and other breakthroughs, and
also by increasing economic cooperation among countries. The globalization
trend eventually waned and crashed in the catastrophe of World War I, followed
by postwar protectionism, the Great Depression, and World War II. After World
War II in the mid-1940s, the United States led efforts to revive international trade
and investment under negotiated ground rules, starting a second wave of
globalization, which remains ongoing, though buffeted by periodic downturns and
mounting political scrutiny.

CONCLUSION

In conclusion globalization is truly an interesting and

important topic about our home planet earth and its
regions and reasources.