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Globalization and Business
Globalization
Management Textbooks Boundless Management Globalization and Business Globalization
Management Textbooks Boundless Management Globalization and Business
Management Textbooks Boundless Management
Management Textbooks
Management
Concept Version 9
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Benefits of Globalization

Globalization has lead to valuable, world-wide cross-cultural understanding and the fruitful exchange of products and ideas.

Learning Objective

  • Examine the positive outcomes of globalization  


Key Points

    • Globalization has some positive political, cultural, economic, and ethical consequences. 
    • From a political perspective, globalization has lead to the rise of organizations designed to promote international cooperation.
    • Globalization has fostered cross-cultural awareness and a sense of global civics.
    • Economically speaking, access to a variety of low-cost goods from across the globe has raised the standard of living for some consumers.

Terms

  • Globalization

    The process of going to a more interconnected world.

  • global civics

    The notion that we have certain rights and responsibilities towards each other by the mere fact of being human on Earth.


Full Text

Globalization is far from a new concept, with its roots tracing back thousands of years. The international exchange of both goods and ideas has resulted in an ever-increasing opportunity for people to explore and appreciate the diversity of world culture. While the negative consequences of globalization are undeniable, it's important to acknowledge the positive consequences of globalization as well. 

The Good in Globalization

The argument in support of globalization is multifaceted, involving complex political, cultural, economic, and ethical factors. Let's briefly touch upon each of these categories and explore the ways in which they may be perceived as beneficial.

Political

The central pillar in political globalization is the ever-increasing need to cooperate. It is clear that through the proverbial shrinking of the world, countries and cultures are brought together to facilitate international agreement. The creation and existence of the United Nations, for example, has been called one of the classic examples of political globalization.

The United Nations Headquarters in New York City

Cultural

Along similar lines, the "shrinking of the world" has allowed individuals across the globe to explore new cultures either via travel or through local exposure to international art, music, religion, theater, TV, movies, and countless other cultural outlets and perspectives.

Ethical

While there are ethical concerns associated with globalization, there are ethical benefits as well. International awareness carries with it, for example, the opportunity for nations and organizations to address human rights injustices committed across the globe. This allows for a rising sense of global civics, the notion that we have certain rights and responsibilities towards each other by the mere fact of being human on Earth.

Economic

Globalization allows for the exchange of goods and services across the globe. As a result of globalization, areas with limited resources (i.e. areas with limited farmland or no access to medicine) are able to access goods that can substantially improve their population's standard of living. 

Globalization also allows for specialization, allowing different parts of product, for example, to be manufactured in different regions of the world. While one area may excel in producing the semiconductor for your phone, another area might excel in crafting your touch screen, and so on. This creates synergies through collaboration, enabling specialists to focus on their business strengths.

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