In terms of globalization, it can be defined as, “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.” (Silicon Valley,2011) The benefit of globalization is that business is able to expand across the globe, which could ultimately create greater revenues for said business or company. Globalization allows for a exchange of ideas and collaborations across the world that could result in progression of a society. A new form of creativity could be reached through globalization for the simple concept that people of different cultural status can connect to create something different.
However, the downside of globalization includes the fact that it will take away jobs from citizens native to the businesses country. For instance, since globalization causes for expansion aboard then businesses will be able to pay workers less salary oppose to workers in their country. According to BusinessWeek, “Millions of Americans have lost jobs due to imports or production shifts abroad. Most find new jobs–that pay less. ” (BusinessWeek,2011). It is said that a business could save nearly 40% of profit when switching to countries that accept lower page wages. Another con with globalization is that it makes it less impersonal with consumers. For example say a company has a IT Support desk set up in Indian, then customers would have to rely on over the phone instructions oppose to being able to get hands on assistance.
“What Is Globalization?.” Globalization101. Silicon Valley , 15 Mar. 2011. Web. 25 Apr. 2014. <http://www.globalization101.org/what-is-globalization/>.
Week, Business. “Pros and Cons of Globalization .” Bloomberg Business Week. Bloomberg, 24 Apr. 2000. Web. 25 Apr. 2014. <http://www.businessweek.com/2000/00_17/b3678003.htm>.