Answer to Question #259239 in Economics for Kame

Question

5) What is meant by globalization, and in what ways does it affect different countries?

Answer 1

Globalization forces businesses to adapt to different strategies based on new ideological trends that try to balance the rights and interests of both the individual and the community as a whole. This change allows businesses to compete globally, and also means a fundamental change for business leaders, workers, and management, legitimately recognizing the involvement of workers and government in the design and implementation of company policies and strategies. Reducing diversification can be achieved through the company's participation in international financial institutions and partnerships with both local and international companies.

Globalization leads to reorganization at the international, national and sub-national levels. In particular, this is the reorganization of production and financial markets. It influences capitalist economic and social relations through multilateralism and microeconomic phenomena such as business competitiveness at a global level. The transformation of production systems affects the class structure, the work process, the application of technology, and the structure and organization of capital. Globalization is now seen as the marginalization of less educated and low-skilled workers. Business expansion will no longer automatically mean more employment. Moreover, it can lead to high capital rewards due to its higher mobility compared to the labor force.

This phenomenon appears to be driven by three main forces: the globalization of all food and financial markets, technology, and deregulation. The globalization of commodity and financial markets means increased economic integration in specialization and economies of scale, which will lead to increased trade access and distribution channels, as well as modernized industrial structures for financial services, allowing access to non-banking organizations such as telecommunications and utilities.

Deregulation refers to the liberalization of the capital account and financial services in relation to products, markets, and geographic regions. It brings together banks, offering a wide range of services, enabling new service providers, and increasing its international presence in many markets and, to a greater extent, cross-border operations.

In a global economy, power is the ability of a company to manage both tangible and intangible assets that create customer loyalty, regardless of location. Regardless of size or geographic location, a company can meet global standards and connect to global networks, flourish and act as a world-class thinker, manufacturer, and trader using its greatest assets: its concepts, expertise, and connections.