IntroductionIn thisessay I will analyse how globalisation has impacted me as an individual and acountry in which I have a personal interest in. I will also put forwardarguments to include at least two of the external environmental factors and theimpact these factors have had on the country I have chosen. The processof globalisation involves the creation of linkages or interconnections betweennations. It is usually understood as a process in which barriers (physical,political, economic, cultural) separating different regions of the world arereduced or removed, thereby stimulating exchanges in goods, services, money,and people.
(Hamilton and Webster, 2015). However,Brooks and Weatherstone (2000) described globalisation as a phenomenon,a process, a state or a concept. It has evolved partly due to the trend forincreasing international trade across national boundaries and the conduct ofbusiness activities in more than one country. Put simply, it is a process thatrefers to the growth of inter-dependencies between national markets and industrieson a worldwide scale. (Brooks and Weatherston, 2000)Globalisation impact on businessesContinuing,as the years passed globalisation became more than just a simple way of doingbusiness or running financial markets – it became a process. From then on theword took on a life of its own.
Centuries earlier, in a similar manner, thetechniques of industrial manufacturing led to the changes associated with theprocess of industrialisation, as former country dwellers migrated to thecramped but booming industrial cities to tend the new machines (Jeffery, 2017). Furthermore, todaythe process of globalisation is playing a key role in the way businesses areoperated and is considered very important mainly because of the opportunitiesit provides for businesses who choose to use this method. Some of theopportunities include access to mass markets therefore increased sales, accessto resources and access to finance and tax savings. On the other hand, with thisprocess there are also several threats involved which businesses will need tobe aware of. This could include increased competition, more demanding consumersor becoming vulnerable to events in foreign economies and markets that areoutside the control of the business (Hamilton and Webster,2015). This can be a major problem for a business especially if they areheavily dependent on foreign markets.
One major implication to businessesregarding globalisation Is that it is important to know how to manageculturally diverse, cross cultural, and geographically dispersed organisations.This is because the management of modern corporations Is more than accountingand finance, business strategy or site location. Globalisation requiresbusinesses to understand the behaviour of people in organisations.
(Francesco and Gold, 2008)Howhas globalisation affected me?Furthermore,globalisation has not just had a positive or a negative impact on businesses,but it has also affected consumers. Due to the process of globalisation widerchoices, improved quality of products, lower prices and overall a betterstandard of living is available to consumers. For example, globalisation hasaffected me and my daily life because of the products and services that I usethat are only available to me due to globalisation.
For example, Colgate,headquartered in New York City, is one of the company that provides a productthat I use every day, which is toothpaste. This company has over 60manufacturing and research facilities globally. It also operates in over 75countries and sells products in over 200 countries and territories (Colgate, 2017). Approximately 75 percent of sales ofColgate’s products come from operations outside of the United States (Investor.
Colgate, 2017). The fact that such a high percentageof their sales come from outside of the United States highlights howglobalisation has helped this company be more successful as well as helpingconsumers around the world by having access to the products produced by them.Next, Adidas is another company, whose products I use, that has grown due tousing the process of globalisation. Starting off in a small town in Bavaria,Germany, and Adidas now is employing more than 60,000 people in over 160countries.
(Adidas, 2017). Adidas is often regarded asthe biggest sport store in the world and using the method of globalisation hashad a decisive influence on this. This is because it has helped the business bemore dynamic and competitive. Below is a graph highlighting how the numberof employees for Adidas has grown over the years (Statista 2016, 2017) Moving on, the process of globalisation has not just impactedme because of the products that have become available to be more but alsothrough other means such as technology. Being from a family that has familymembers living in several different countries, globalisation has helped inmaking things easier to check international news sites and see what ishappening in other countries where my family members are living. Furthermore,globalisation has also helped me to chat to friends and family that are outsidemy country, England. This highlight the fact that technology has played a keyrole in helping globalisation reach its full potential. Migration is anotherthing that has had a large impact on my life and the globalisation has played akey role in this because due to globalisation migration between developingcountries and developed countries has risen (Hamilton and Webster, 2015).
The process of globalisation helpedmy parents to move to England, the country which I live in, many years backwhich is why it has had an impact on me. Overall, there are many ways of howglobalisation has affected me including those that are mentioned above as wellas other ways such as education. Globalisation impact on UAEThe countrythat I have chosen to write about is the United Arab Emirates (UAE).
UAE is afederation of seven states that has grown from a quiet backwater to one ofMiddle East’s most important economic centres (BBC News,2017). Since the discovery of oil in the UAE nearly 60 years ago, the countryhas undergone a profound transformation from an impoverished region of smalldesert principalities to a modern state with a high standard of living. Thegovernment has increased spending on job creation and infrastructure expansionand is opening up utilities to greater private sector involvement (Activpayroll, 2017).
Thecountry’s free trade zones – offering 100% foreign ownership and zero taxes –are helping to attract foreign investors (Cia.gov, 2017).United Arab Emirates is greatly influenced by globalisationand technology is one of the factors for this. The country consists mostly ofyoung generation which is very tech savvy, resulting in companies around theUAE to leverage technology (Oxford Business Group, 2017). Due to thewealth it has, UAE has been able to purchase new equipment that helps in technologicaldevelopment. Globalisation and technology has allowed and provided a number ofbenefits for UAE. For example with the rise of technology has come the abilityto develop and increase networks of individuals throughout the world (Internationalrelations.
org,2017). The UAE market is cooperating with modern trends and applying newknowledge. Compliance advance ideas in market helps in getting efficient workin sectors like production, management and entrepreneurship. However, financialinstitutions such as banks may find it difficult to use the internet to selltheir services in foreign markets because countries may lay down differentsolvency requirements (Hamilton and Webster, 2015). Also, many of the world’spoorest countries do not have access to basic technologies and are excludedfrom these benefits which can cause tensions between the rich and poorcountries (tutor2u, 2017).Continuing, as a country the United Arab Emirates has a fewdifferent political standings that effect its standings. The UAE has healthytrade relations with many countries across the globe.
This has enabled them tomake some important deals with countries. For example, in 2017, UAE and Indiaagreed a deal regarding emergency oil reserve. This deal will allow UAE toconstruct more investment deals in the future (The National, 2017). However,UAE has not always had healthy political relations with everyone. Conflictsbetween the 7 federations regarding oil reserves resulted in UAE’s global peaceranking (The National, 2017).
This resulted in complications forUAE when trading with other countries.
