International Business The Globalization of Inequality

Question: Describe about the International Business for The Globalization of Inequality. Answer: Introduction A review of Trends and Perspectives of Globalization is done by the authors, Tiffany Bishop, John Reinke and Tommy Adams of Sam Houston State University in the Journal of International Business Research, in Volume 10, Number 1 of 2011 edition. The article Globalization: Trends and Perspectives seeks to address how the globalization has created drastic effects on the economy and trade policies, all across the world. The problem addressed in the review contains the brief history of globalization, the trends in the recent times and various perspectives on the globalization process. It also addresses the influence over the political status, technologies and transportation and other activities within a nation. The abstract clearly states that even though the internationalization has increased the transfer of capital, communication links, and importance of trade and trade policies; there has been an increase in the political challenges. The authors have provided proposals for the future that contains a set of rules to be placed, the way of handling political issues and prevention of globalization from making its way too further. Summary Critique The authors have presented the transformation and results of the globalization process since the past three decades. There has been an increase in internationalization, which has led to a need for increased rules and regulations in the economy. History The globalization started soon after the connections between humans and when there was trading done by the explorers of Europe. There was no rapid increase in the trade until the period of 1970 and 1980. It started with the improvement and evolution of technologies and liberalization of the policies of government. In addition, the International Monetary Fund and World Bank have helped countries to internationalize themselves to a greater extent. However, as per the present scenario, globalization process is declining and being at a standstill as per the current economic trends, which is discussed in the later parts of the journal. Trends of Globalization The noteworthy trends of globalization are discussed which are: Increase in the Technology and Transportation: Globalization has helped improvement in the availability of technologies and transportation facilities. Evolution in technologies has made the communication process healthy and efficient. The convenience in transport facilities has helped reduction in cost of transportation. The main growth stages between 1970 and 1993 noticed an increase of fifty percent mobilization in Europe. The convenience of transportation breaks the barriers between trades among various countries and helps in the marketing of technological activities. The digitalization has also helped the growth and development of the process of globalization. With the advent of the telecom industry, there has been an ease in the communication process. Meetings, e-mails and various other methods of exchanging informations has become easy and cost effective (Fujita and Thisse 2013). In the above point, the writers have focused on the effectiveness of the innovation in the technologies and transportation facilities. The convenience and cost effectiveness of transportation and communication is a major boon for a nation to enter and develop the globalization process. All the other writers are satisfied with the above stated points of the writers of this journal. They agree that the telecom and transport industry has become cost effective with the inclusion of numerous amounts of nations and participants (Montobbio and Sterzi 2013). So, there is no bias on the part of the writers and the content is easily understandable. Liberalization of Governmental Trade Policies: The authors have explained the major role of a government in setting up the standards and over viewing, the international trade structure. The capacity of the government to facilitate investments determines the likelihood of a companys globalization. The main role of the government consists of creation of an effective market structure through the incorporation of efficient business laws and corporate governance. It provides an effective marketplace for the allocation of resources and assets (Kovak 2013). For the growth of economy, the liberalization is much needed and required. The United States, in the recent years have increased the participation in the organization and a number of legislations were passed which intended to regulate the trade and financial aspects of a business enterprise (Pinheiro et al. 2014). The new regulations have made the trading more fluent, for the United Nations, as the new nations are able to make affordable products for the citizens of the country. According to the authors, to attain competitive advantage in the world of globalization, it is important for the countries to make an active participation in the agreements of trade (Hirst et al. 2015). Also, to achieve the benefits, the government should cover liberalism in both the developed and developing nations. The authors do believe that, for the increase in the worthiness of the stakeholders, financial capital must be exceeded in an organization (Pianta 2014). The main consideration of this point is to gain liberal policies and Governmental trade policies. The other writers have agreed to the consent of the writers. A writer says that the free flow of capital has lead to an explosion of greater technologies, trading and the financial markets (Buttel and Gould 2015). Thus, the writers are successful in proving their point of consideration as there are no rejections or disagreements on the part of the other authors and writers. Increase in the inequalities of nations The richer countries are getting wealthier and the poorer are continuing to grow poorer. Thus, the result of globalization has been an increase in the inequalities of nations and countries. As per the writers, a study provided the statistics, which mentioned that, the majority of the Gross domestic Product is controlled by just twenty percent of the worlds richest population and the other eighty percent controls only a minor amount. Also, about eighty two percent of the worlds exports are controlled by the richer sections of the population (Mah 2013). The writers are not satisfied and they predict the increase of commerce on a steady and active basis. A writer says that the globalization will not leave alone the poor countries, as there is a great reduction of borders of trade across the world. The reforms are helping the nations to integrate into the global world and reduce the inequalities between the nations already present in the global market (Jaumotte et al. 2013). As per the other writers, the developing countries have augmented the reduction of poverty and also enhanced the growth of the economic conditions and policies. Thus, the nations, which follow right and integrated policies, can definitely succeed from the globalization process. Thus, when developing countries gain knowledge about such growth and enhancement, they will not lag behind in joining the globalization policy (Kaplinsky 2013). This, is a disagreement on the part of the other directors, as the journal writers have complained about the inequalities created by the globalization, whereas, the other writers have supported the participation of developing and poorer companies, in globalization. A study also describes the factors, which creates a positive impact on the growth of the economy (Bourguignon 2015). The major point of discussion is that even though few researchers think the globalization procedure, a total failure towards attaining the developed structure, by the poorer countries; there are majority of researchers against such proposition placed. The countries must create stabilized market conditions by improving the human resources. This will enhance the quality of the organizational activities undertaken. Even, the governmental controls and needs must be effective towards the utilization of making policies and deliverance of the services of the public (Bourguignon 2015). In addition, the globalization creates benefits for all nations, which are involved together for the common goal and objective. Inequalities of Incomes between Citizens of A Single Nation Along with increase in the inequalities, arose the low income rate of the citizens which consisted, mainly the labor class. The rapid changes in the technological aspects have resulted in the loss of labor and thus, helped in spreading of inequality among the citizens. The poor people suffer the challenges of economy like, inflations, wage and salary rates divergence and many more. The unskilled workers are unable to secure their jobs and the lower skilled and efficient workers are facing the problems of unemployment. The individual incomes are unequal in comparison to the inter company incomes, on an average (Benera et al. 2015). The other writers do not agree and support the viewpoints, as there are positive aspects of globalization for the poorer group of people. There have been various reforms in the past, which had been undertaken in order to protect the poor from inflation and other harsh impacts of the economy (Milanovic 2016). Perspective of the non occurrence of Globalization The majority of the writers and researchers believe that the globalization has become stable and not occurring or growing anymore. Both the supporters and non supporters believe in the political policies and approach to be the reason of the non occurrence of globalization (Spiegel 2013). Reversibility of Globalization The writers believe that the globalization process has lead to both good and bad ideas incorporated within the economy. Bribery, poverty and inequalities has inculcated within the economy across the world, but also positive factors such as technological and medical discoveries has resulted in the societal improvement and development (Schneiderman 2013). Thus, the writers believe that the entire process would require huge modifications like the opportunity creation for everyone with equality, democratic state, and development in a sustainable form. There must be creation of fair rules and regulations along with greater responsibility on the shoulders of the citizens and other socio-economic policies (Chibba 2014). Hence, there was no bias on the part of the writers on the point of reversible globalization structure. Conclusion Thus, the above article proved to be useful in understanding the positive and negative impacts of the globalization act. Firstly, the increase in the technology and transportation facilities have lead to cost effectiveness, which has improved globalization process and policies among all the nations. The changes in the economic conditions and policies have created inequalities among the nations and within the nations, between the richer and lower class group of people. The various perspectives from different individuals have been summed up in the above paragraphs, wherein the reason of occurrence and non occurrence has been defined to be the results of governmental policies and regulations. Lastly, the writers have presented the affects of the globalization, both in a positive and negative manner and also the results incurred, which seems to be irreversible. To modify, a huge list has been defined by the writers, which has been expressed and described above. Thus, it can be concluded that the act of globalization had completely been involved in the transformation of the nations and businesses processes and policies. References Benera, L., Berik, G. and Floro, M., 2015.Gender, development and globalization: economics as if all people mattered. Routledge. Bourguignon, F., 2015.The globalization of inequality. Princeton University Press. Buttel, F.H. and Gould, K.A., 2015. 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