All entries for Monday 13 October 2008
October 13, 2008
Today we have had our first GBE course, I have some thoughts about the Globalization.
When you sitting in the car ready to drive to school in the morning, your car is Toyota which made in Japan, your beautiful clothes is manufactured in China, the coffee you are drinking was imported from Brazil, when you listening CDs, the songs are recorded from American singer¡ such and such, every product around your life nowadays are coming from different countries, this is because the Globalization. Generally speaking, it let the world become more integrated and more interdependent.
Why the world is globalised?
The improving technology is a very remarkable facilitator for Globalization, it brings distant market almost accessible. Ages ago, we use to travel around world by boat, it took years to travel from Europe to Asia, then we have train and then Boeing Aircraft which takes us to anywhere in the world we want within 24 hours. The new E-business making even more convenient for people, they can use the computer at home or office to purchase, sell or exchange goods and services, to serve customers with partners, to transact within a company.
Also the governments¡¯ agreements open the world market, drives the cost down, e.g. WTO reduce of trading barriers, this also helps Globalization.
There are good things about the world to be globalised.
- We can have great new market opportunities, especially for those home market is small or saturated, they can explore aboard. For example, China has great opportunities for E-industry as only 160 million in 1.36 billion population are currently internet users, also it is huge space in car industry as 1 out 7 people has a car. These are great chance for those internet producer and car producer.
- Allow companies to reduce overall production cost though access to low cost labor. Also to access resources that is unavailable or more costly at home market. E.g. Japan lacks natural resources, if it wants to develop their car industry, it must use steel from other countries.
- It can create jobs, say labor from India they are low wage but highly skilled workers. They are welcomed by developed countries. For example, some company¡¯s call centre just set in India as the labor cost is cheaper than in their home country and Indian people also speak English. Also, India is a location for software- writing operations.
- It brings economic growth stimulation, the world¡¯s GDP has significantly increased since 1960s is because of the globalization.
- lIncrease consumer¡¯s income. Like the example above, Indian worker are paid good salary compare with domestic level.
Globalization also causes problems.
- It destroys manufacturing jobs in wealthy, advanced countries. For example China, the world manufactory base, many countries set their manufacturing line in China to use the cheap labor cost, letting their home unskilled workers losing jobs.
- To some degree, it might cause loss of sovereignty, because globalization trends to nationalization. It eliminate the national boundaries, mix up and unite the culture.