Globalization affects to the world regions

Globalization affects to the world regions

The movement of goods, technology, companies, knowledge, and employment outside national borders and cultures is called globalization. So, from that description of globalization, the economist describes it in their own term, which refers to the interdependence of countries and nations throughout the world produced by free trade (Fernando, 2022). Due to the movement mentioned above, the relationship between countries and marketplaces shapes one another at the national and international stages, and globalization is the number one contributor to help to alter that relationship (ó Riain, 2000). That shows us that globalization affected and continues to affect the world regions. However, the effect can be positive or negative. It all depends on how a country balances itself in the face of globalization.

According to Collins (2015), some world regions may be affected positively in terms of the following:

1.????Decrease barriers like tariffs and taxes in an X country exports.

2.????Grow the economy and lower prices of many goods.

3.????There is a high chance that foreign direct investment (FDI) will be given to the country along with the technology needed for developing nations.

4.????FDI will come to a country with an acceptable amount of stability, and globalization may increase the stability.

5.????Increase the standard of living.

6.????Increase transparency level.

Collins (2015) also gave some negative effects of globalization in the world regions such as:

1.????Lose of jobs from rich countries of poor or developed countries

2.????Increase the tax evasion cases for companies and individuals.

3.????Increase the number of cases of poor working conditions, unfair use of developing nation natural resources, and social injustice.

4.????Increase the risk of technology leaks and technology getting stolen.

5.????Give huge power to corporations, sometimes more than the government of the country that they operate in

A country can minimize or maximize the effect of globalization by choosing the economic system that better suits the country's needs and political position and system. Our book of study gave us three types of economic systems: market economy, command economy, and mixed economy (Doh & Luthans, 2018, pp. 22-23). A marker economy means that a private company retains the right to maintain and own property and control, manufacture, and deliver goods and services (Doh & Luthans, 2018, pp. 22-23). Command economy means that a government or a state controls the price and supply of goods and services, and the companies must follow. In this system, the businesses usually are in the hand of the government and the state (Doh & Luthans, 2018, pp. 22-23). The mixed economy combines both systems (Doh & Luthans, 2018, pp. 22-23).

The benefits and costs of globalization for different sectors of society. Companies, workers, and communities an examples.

As mentioned above, globalization affects the different world regions positively or negatively. How a country manages globalization will determine which effect it may face. So, when it affects a country, it will defiantly affect its companies, workers, and communities. Bellow will see the effect of each one of the elements above.

The effect on companies:

According to Erixon (2018), globalization gives companies the following benefits:

1-????Companies became more specialized.

2-????Increased the R&D budget.

3-????Increased number of the patent.

4-????Increased in invested capital and its return.

5-????Access to a new market and cheaper labor.

On the other hand, velocityglobal.com gave some cost negative of globalization on companies like:

1-????Difficulties manage employees from a different cultures.

2-????Difficulties to find the right employee for the right position, especially in positions that require a highly skilled person.

3-????Companies may need to change their culture.

4-????Companies may anger their mother nation citizen due to the loss of jobs, which may affect the company's performance.

The effect to the worker

There are many benefits of globalization to the worker like:

1-????Narrowing the pay gap (wage gap) between employees in developing nations (Dadush & Shaw, 2012).

2-????Increase the employment of unskilled workers in developing nations (Heyman & Sj?holm, 2019).

3-????In many cases, globalization increases workers' living standards in developing nations (Ortiz-Ospina, 2018).

However, globalization affects the worker negatively in the following points:

1-????Very low employees wages in developed nations (Autor, Dorn, & Hanson, 2013).

2-????Increase the unemployment rate in developed nations (Autor, Dorn, & Hanson, 2013).

3-????In many cases, companies that worked on the international stage did not offer a health care plan and pensions for employees in the developing nation, especially those working in poor conditions. Also, they did not allow unions or implement the local labor law very well (Kawachi, 2008)

We can see here that most benefits go to employees in a developing nation, not to those in a developed nation.

The effect on the communities

The benefit that globalization gives to the communities are the following:

1-????People spend less money and get more goods since making these goods is low.

2-????More work available in developing nations means more money and a better standard of living.

3-????Communities are becoming more open to new cultures, ideas, and ways of thinking (Ansari, 2019).

4-????Technology has become more accessible to the local community in developing nations (Josephson, 2021).

The negative impact of globalization in communities are the followings:

1-????People's migration from rural to urban regions has surged, putting more pressure on the agricultural and other sectors in developing nations (R, n.d.).

2-????Increase the violence in the big cities and urban areas due to the lack of space and the crowded. (R, n.d.)

3-????Low level of education among the unskilled worker in the developing nation. They are looking for a job and not going to school (Sharma, 2004).

4-????Increase the gab income between developed and developing nations with the developed nation having the upper hand. That may increase the hatred between the nations (Sharma, 2004).

Globalization and Saudi Vision 2030

The Saudi Vision 2030 was bullied based on three pillars: vital society,?a thriving economy, and?an ambitious nation (Vision 2030, n.d.). The vision of the Saudi government, as well as the accompanying National Transformation Program 2020, both emphasize the necessity of expanding the country's economy (Nurunnabi, 2017). However, that would not happen if Saudi Arabia did not open itself to the global market, be part of the global society, and globalize itself.

According to Dagustani & Gresham (2021), Saudi Arabia aims to strengthen its strategic location in the world map to be the 25th instead of its current position, which is 49th to become the first regional center of trade and to move from 25th to 20th place in the Global Competitiveness Index. Furthermore, Vision 2030 aspires to lessen Saudi Arabia's reliance on oil as a single article of trade by enhancing local export to reach 40% instead of 20%, so that the Kingdom turn into a hub for business and investors and a leading center in the development of international and global business. The World Trade Organization reported that in 2016 Saudi Arabia ranks 16th ?in exports and 22nd in imports globally, reaffirming the Kingdom's vital location on the Red Sea, representing 13% of global maritime crossings. Saudi Vision 2030 has helped strengthen the private sector's capacity, eased investing requirements, expanded the customs system, and amended existing rules, allowing companies in this sector to grow non-oil exports from at least 16% to 50% of non-oil GDP. The vision realizes the importance of globalization that is way ease the way for the private sector to participate more in the global stage

References

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