Globalization Advantages & Disadvantages
Introduction:
“Globalization is a natural phenomenon, in both cultures and markets that allows for synergy through specialization. This empowers domestic economies to gain a larger array of products, services, human capital, investment, and knowledge through leveraging external markets. The evolution of this natural development provides interesting insights as to the value captured through international trade, underlining its important role in worldwide economic development.” (Boundless, n.p.)
”World culture is a myriad of different ways of creating the integrity without which life and business cannot be conducted. There are no universal answers but there are universal questions or dilemmas, and that is where we all need to start”
In the global management the interaction between different cultures is challenging even if the interaction between parties speaking the same languages. So global business should understand how to communicate with employees from different cultures to make the right decision regarding improvement of the business. As stated by Mead & Andrews (2009) that internal and external factors are essential for the right decision.
In the study done by Thomas and Ravlin, they figure out that the managers should pay attention to the usage of individual difference to create innovation by stating problems and challenges and open resources and information to solve those problems, rather than teaching members how to act like each other. So communication that is depend on culture understanding is very important for company success.
Globalization has many effects on culture in many ways. One way is that globalization scatter any culture in the universe making it heterogeneous fabricating the connections between different groups” For example, teens in the United States gain an understanding of Japanese culture through animation, comic books and video games, while teens throughout Asia learn about the
American way of life by watching U.S. TV shows and movies” (Discovery Channel, n.d.).
Another way is that Globalization makes culture more homogenous as the world culture becomes similar and unique which have few diluted trends. It is believed that this way will consider goods and media while on the other hand it could weakness traditional culture. For Example “"American" fried chicken can be found from Florida to Hong Kong” (Discovery Channel, n.d.).
It is seems to be hybrid cultures between heterogeneity and homogeneity “Glocalization” which means foreign cultures reaches local cultures leading to developed hybrid cultures.
Globalization Advantages and Disadvantages:
The incensement of multicultural contacts leads to the willingness on increasing standard of living and usage of foreign products resulting in new technologies, practices and having position in the world culture. While other societies thought that it might lead to loss of languages and consumerism.
Definitely there is culture transformation as spreading multiculturalism help the individuals to access many cultures like movies that exported from USA for Hollywood and from India Bollywood, which contains their cultures. Some societies consider this transformation as danger because it could lead to replacement of the local culture leading to reduction in diversity, while other societies promote this idea as it will spread peace and understanding between different societies.
Transformation of cultures will influence the international travel, immigration and exporting and importing of goods through the world.
Globalization promoted the goodwill between countries raising the access of companies to different markets and raise the world investment.
Globalization leads to decrease the world poverty and spread the technology.
Globalization could lead to destroy the small industry, culture transforming as most individuals tend to follow the west culture.
Economic disturbances in one nation will affect all other nations and wealth redistribution.
Increase the risk of transferring different diseases between nations
Conclusion:
Companies that are aware of cultural differences and how to adapt the cross cultural environment are more successful. Managers should have the global mind set as stated by Rhinesmith (1992) “a predisposition to see the world in a particular way that sets boundaries and provides explanations for why things are the way they are, while at the same time establishing guidance for ways in which we should behave”. They have to be aware of the market dynamics and diversity, flexible with employees, understanding the culture diversity and making right decisions. (CleverWorkarounds, 2008)
References:
Answers.com. n.d. What are the advantages and disadvantages of globalization?. [online] Available at: http://wiki.answers.com/Q/What_are_the_advantages_and_disadvantages_of_globalization?#slide=2 [Accessed: 22 Mar 2014].
Boundless. n.p. Defining Globalization - Boundless Open Textbook. [online] Available at: https://www.boundless.com/management/boundless-open-textbook/globalization-and-business/globalization/defining-globalization/ [Accessed: 22 Mar 2014].
CleverWorkarounds. 2008. Mrs CleverWorkarounds - Skills and Competencies of Global Managers. [online] Available at: http://www.cleverworkarounds.com/2008/05/31/mrs-cleverworkarounds-skills-and-competencies-of-global-managers/ [Accessed: 22 Mar 2014].
Discovery Channel. n.d. Big Question: How is globalization changing culture? : Discovery Channel. [online] Available at: http://www.discovery.com/tv-shows/curiosity/topics/big-question-globalization-changing-culture.htm [Accessed: 22 Mar 2014].
eNotes. 2009. List the advantages and disadvantages of globalization. Answer should be in listings, not in lengthy paragraphs. - Homework Help - eNotes.com. [online] Available at: http://www.enotes.com/homework-help/list-advantages-disadvantages-globalization-113517 [Accessed: 22 Mar 2014].
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Okoro, E. 2012. International Organizations and Operations: An Analysis of Cross-Cultural Communication Effectiveness and Management Orientation. Global Journal of Business \& Management Research, 12 (23).
Trompenaars, A. and Hampden-Turner, C. 1997. Riding the waves of culture. London: N. Brealey Pub Top of Form.