Above all, let's start by explaining what globalization is. Many definitions exist some are too minimalist, others too general. The term used to describe the current state of the global economy has become a fashionable word. We retain that: “Globalization is a process (or set of processes) which embodies a transformation in the spatial organization of social relations and transactions – assessed in terms of their extensity, intensity, velocity and impact – generating transcontinental or interregional flows and networks of activity, interaction, and the exercise of power.” David Held et al. That definition is both broad and fairly accurate.
Globalization is not a state but a process. Process that is manifested by increased interdependence between the various continents and therefore all countries of the world. Effectively, never the world produced so much wealth. Never technologies were developed as well as today. Never exchanges between the countries were as well as now. Globalization, striking phenomenon of the last thirty years, brought by progress in transports and telecommunications, has intensified the economic, financial, cultural relations between human societies. Firstly, we see the main characteristics and forces of globalization, both economic and non-economic. Then we will discuss about the challenges and opportunities that globalization brings to multinational businesses.
[...] The consequences for businesses are not trivial. These consequences are both positive and negative as we consider those who take advantage of the globalization as the multinationals and the consumers, or those who suffer, such as SMEs (small and medium enterprises) and the workers. Globalization is certainly a source of growth; it also accentuates the imbalance between north and south countries. Even if industrialization is through the relocation of firms from the North, some of the South countries show that changes are underway the southern economies are growing, unlike the Northern economies which are already developed. [...]
[...] That definition is both broad and fairly accurate. Globalization is not a state but a process, a process that is manifested by increased interdependence between the various continents and therefore all countries of the world. Effectively, the world has never produced so much wealth. Technologies were never as well developed as today. Never were exchanges between the countries as efficient as now. Globalization, a striking phenomenon of the last thirty years, brought by progress in transports and telecommunications, has intensified the economic, financial, and cultural relations between human societies. [...]
[...] In political terms, globalization weakened national sovereignty. In the global economy we believe that multinational and global corporations become all-powerful. The government will no longer play a small role, which is to serve the interests of those companies. Increasingly, global competition is more governed by market forces than by national governments. Two factors contributed to limit the autonomy of government policy: the rapid cross- border flows and the global integration of financial markets. In the EU, nationalist sentiments arose, delaying the development of supranational institutions in Europe. [...]
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