Globalization From International Business Perspective

Globalization explains interdependence between all countries around the world, and this leads to contribute to economics, culture, and civilization as well. In addition, this contributes to growing international business, technology, and an open new market for trade between all countries. Furthermore, this leads to the following of investment, and technology, as well as this, contributes to developing the concept of Foreign Direct Investment that leads to growth in the global GDP. This FDI was created to make shared befits between all the countries after the first and second war, world leaders thought about the idea that helps in stabilizing the relation between all the countries as well as achieving growth. 

In fact, we could not deny that Globalization has plenty of benefits as well as some negative impacts that correlated with this ideology. Globalizations contribute to world trade by giving the availability to exchange goods, and services all over the world as well as opening many opportunities for youth to work in a forging country. In addition, this allows the world to share knowledge, technology, education, improve healthcare, and open the door for knowing different cultures which leads to an increase in competition in the market. As result, people living standards improved as well as the poverty level goes down. Moreover, this allows countries to have strong political, and economical contribution, this leads to decrease discrimination between people from different nationality. Finally, this leads to the availability of products and services all over the world, and increase creativity, innovation, as well as reduce the cost of goods and service due to the high competition in the market. 

On the other side, there is a critical downsize on the local economy that is unable to compete with the international market as well as cutthroat of the business competition between the developing and developed countries. Business is always looking for the low cost, so they transfer their business to places that have low salaries and wages for workers. Furthermore, they always searching for places called Tax Save Heaven to reduce their cost. For example, Egypt got out of the car industry due to the low cost of foreign cars offered here as well as the high technology they use. In addition, the is a risk of transferring diseases great example is COVID-19 that we currently suffer from its negative impact. Moreover, after the second world war, the U.S started to take over and rule the whole world, and currently, they fight with Chania to keep their control, and all small countries are affected by their decisions. In addition, globalization leads creating new theory called Spillover Effect which that apparently unrelated event occurs in one country could impact the economic on another nation which is the effect of globalization. 

For example, the great recession of 2008 had a direct effect on the whole world since the U.S contributes 25% of the world GDP. As result, industrial countries became the dream of all other nations to travel, and work their so immigration increase, and illegal migration rates increased over and over in the poor countries due to poverty, and high unemployment rate. Globalizations leads to a negative impact on the environment due to the toxic emission that came from factories. Finally, globalization increase the monopoly power since a huge economy, business control the prices of goods and services. For example, the Brazilian government supported the malfeatures of sugar, so their cost goes down, and Egypt was exporting from them so the local manufacture in Egypt was not able to compete with them as a response from the Egyptian government was to increase the tariff on the exported sugar.  

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#Globalization

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