Introduction
Nowadays,
international transfer and communication is very common things among us. Goods
and services can be easily promoted to others countries in a short time. This
is called the era of globalization. First of all, what is globalization? Globalization
is something that has been with human being ever since the world has begun. The
result of human innovation and technological progress has made globalization. As
we all known globalization is where there is interaction and integration among
the people, companies, and governments from different nations. It is aided by
information technology which a process driven by international trading and
investing. Globalization is worldwide development of an increasingly integrated
global economy market. Although globalization is often thought as economic
terms, globalization has a lot of social and political implications as well.
Besides that globalization can be associate with modernization which is the
transformation of traditional societies into modern societies. Globalization is
affecting the world business in this 21st century. According to
article written by (Chowdhury, 2012) In future times, our
next generation is important because they are the one who will be taking off
all the asset we left for them. Therefore, their view and opinion of
globalization is important for further development. The study of attitude of
student towards globalization should be done to understanding their points of
views to find out whether there is any differences between the future business
leaders with the general public and current business leaders. Furthermore,
globalization is giving us many advantages and
disadvantages. Is globalization good or bad? There is some opinion that include
good and bad of globalization nowadays in view of general aspects.
Creating A Global Job
The process of globalization in business is the latest
trend in the business world, where all countries and organizations in the world
want to trade across borders of each state. (
Rafidah Manap dan Mokhtar Pet, 2013) state that the world situation is
rapidly increasing with the advancement of the technology makes the process of
globalization is becoming increasingly easy for business organizations.
Organizations that wish to conduct international business will find and build
their business location, where location is generally will undertake marketing, manufacturing,
human resource management and technology transfer. Malaysia did not miss from
becoming a focus of the organization’s business for started an international
business. This indirectly helped Malaysia to reduce unemployment and create job
opportunities for Malaysians. For example,
First Solar in Arizona, US has opened a new company in Malaysia which located
in Hi – Tech Park, Kulim has helped the State to create a job opportunities. (Solar, 2008). Where at the beginning of the
opening just 109 worker needed and has increased to 3,500 workers in October,
2011. (Rattanachot, 2008). In addition, the establishment of
the world’s leading semiconductor chip production based in the United State has
helped Vietnam and Malaysia in particular to solve the problem of unemployment
and job creation. According to Robin, General Manager of Intel Malaysia’s
Production Test, around the 40 years of operation in Malaysia, Intel had about
9,300 worker. (RADUIAN, 2012). This is enough to prove that
globalization helps in creating jobs and based on the study that conducted by
the Fact Tank found 54% person believe that globalization is good to create
jobs. (Stokes, 2014).
Increase Of Wages
The benefits of globalization can create an
international trade which can increase the wages interest and purchasing power
especially in low income country such as Africa. When a country engages in
international trade, the households’ income will stretch further and their real
purchasing power will rises. This is because they can obtain the goods and
services at lower price and good quality. Due to international competition, the producers also can
obtain the goods and services at minimum possible cost and high quality. As the market has widened, the
demand and scope for a goods and services has increased. This increases the efficiency and benefits to the consumers
all over the world. By the ways, Gross Domestic Product (GDP) will rise
from its factor of production that is not used to produce goods and services
that other countries at lower resource cost. Globalization has significantly
boosted the economic growth in East Asian economies such as Hong Kong, the
Republic of Korea, and Singapore. Through the globalization, the country will
opens its borders to free movement in and out of goods and services and then
provides the chance and incentive to move the country’s resources into their
highest-value uses, thereby facilitating economic growth.
Globalization has created the economic growth that can
reduce poverty by increase their wages in low-income countries. For example,
Japan, Korea, Taiwan, and most other East Asian countries were very poor and
their wage rates were very low. As wages and incomes have risen in each country
in succession that country has become a better market for products and services
in which the United States is competitive. For example, Japan, South Korea, and
Taiwan became the best markets for Midwestern corn and soybean products as
people there gained the purchasing power to include more animal protein in
their diets.
Promote Economic Development of the
Country in Technology
The era of globalization sweeping the world would not
be complete without the existence of the development of information technology.
Through the dissemination of information on a large scale will certainly lead
us to an electronic civilization. As we all know that information technology
relating to various means to receive and transmit information such as words,
pictures, sounds and numbers that can be made electronically. Internet are one
of the improvement in technology, is a medium that is used to get the latest
information. Now many of organization wisely used internet to obtain
information for trade, advertising, education, news and so on. Through the
internet, we can simplify make process of both local and international trade
without having to go to a trade.
In addition to that, the traders can expand their
business using the internet, e-mail and others. For companies that want to
market their business to an international level, they can make use of video
conferencing to discuss with overseas companies. This shows that touch every
aspect of the business of trading of goods, quantity, quality and complete
details about the sale and purchase agreement will be made with the E-commerce
and other facilities provided by advances in information and communication
technologies. Globalization of the economy will also promote technology
transfer from developed countries to developing countries.
According to Newton (2009) technological advances that
have helped the process of globalization reach the extent that it has reached.
Through modern technology, globalization and the transfer of expertise from
developed countries can builds economic structure of developing countries. In
addition, information technology, which creates a communication platform that
enables the exchange of goods, communication and resources regardless of
geographic proximity, greatly increased the international flow of commerce and
ideas. In addition to capital, the level of backward technology and shortage of
experts is also a major barrier to most of the developing countries to progress
in the modern economy. The changes of technology in economic, people will learn
how to control technology through advanced training and collaboration in the
context of research and development (R & D). The training will eventually
produce local people who can master the foreign expertise and advance their own
country. This situation can be seen in HITEC technology in Malaysia that shows
Malaysia to much depend in transfer of Japanese technology, design technology,
quality control, communication technology and expertise in the management of
another. Globalization can transfer the modern technology and the transfer of
expertise from countries that are more advanced, such as Japan, USA, Germany
and others can be implemented in developing countries. Local people must learn
methods of handling technology through advanced training and collaboration in
the context of R&D manpower. Eventually expertise will be affordable for
local people that would be used to develop the country. Globalization also
widen the technology and global market.
BAD OF GLOBALIZATION
The world today is more
dangerous and less orderly than it was supposed to be. As a new transformation of the way that people doing their
business, there is some negative side that people must look for. Globalization
not always be the good in business activities, globalization also be harmful
and point of negative impact for people who hard to accept the concept of this
cross-border business transaction.
Slower The Process Of Developing Country
Globalization
can bring some bad effect when it transfers jobs from developed countries to
less developed countries. Globalization levels the playing field, in a way that
makes it hard for developed countries to compete. A country with a lower cost
structure which means with lower wages and benefits for wokers and also more
inexpensive coal in its energy mixare able to out-compete a typical OECD
country (The Organization for Economic Cooperation and Development). We analyze
an issue of prime importance for the future of China's economy. The decline in
coal supply will make a challenge to China's economic growth when coal price is
rising and also have an adverse or bad impact on economic growth.That is how we
determine that globalization also give a bad impact in globalization and when
it happened so then it will also related to the international business. It is
because international business is make a relationship with another country. So,
if the economic in another country decline it might be happen that the business
between two country getting not good. Besides, there is an article that is
related to the China’s economy which is “An analysis of China’s coal supply and
its impact on China’s future economic growth”. In this article that i have
found it state that “Many people believe that China's economic growth can
continue almost indefinitely. For a manufacturing-based economy such as China's
to continue to grow, it needs an adequate supply of inexpensive energy. To
date, this energy growth has primarily come from coal, but China's indigenous
coal supplies are now falling short of the amount needed to support this
growth. In this situation, the status of China's future coal supply will be
very important for China's future economic development. (JianliangWang, Energy Policy , 2013)
Anti-Globalization
Since the late 1990, members of the countercultural
movement made up largely of activists, intellectuals, and students all over the
world have banded together in opposition to globalization, the raise of
worldwide capitalism driven by technological advances in manufacturing and
communication industries.
Groups as diverse as AIDS
activists, union laborest, animal right advocates, environmentalists, youth coalitions,
and senior citizens have united against the exploitative practices that
globalization is said to result in, such as fourteen-hour workdays, sweatshop
working conditions, minimal pay, environmental damage, and the corporate
patenting of indigenous knowledgein the field of medicine and agriculture.
Through
the coordinated efforts of organizations such as Global Exchange, Focus on
Global South, 50 Years Is Enough, and the International Forum on
Globalizations, there have been several successful protests, forums and other
events aimed at raising anti-globalization conciousness and disseminating
information among people in all parts of the world.
The
defining movement occured during the 1999 World Trade Organizations (WTO)
Ministerial Summit in Seattle, where thousands of people representing hundreds
of different organizations gathered to support the right of the world’s poorest
and most marginalized people. Since the event, anti-globalization activists
have successfully organized and protested as such major meeting as the 2000
International Monetary Fund/World Bank (IMF/WB) Summit in Prague, in the Czech
Republic and another protest. (Misiroglu,
march 2015 )
Higher Tax Rate
Globalization tends to move
taxation away from corporations, and onto individual citizens. Corporation has
the ability to move their location where the tax are at the lowest. The
individual citizen will have much less ability to make such a change and with
the lack of jobs in this era each community will have to competes with other
communities with respect to how many tax breaks it can give to prospective
employers. Since many companies are able to trade with one
country while being based in another, large corporations often exploit tax
havens such as Luxembourg, Switzerland, and Hong Kong to avoid paying taxes in
the countries where they generate their profits. This can often hurt consumers
in the form of higher taxes on consumer products and property. Since countries
often have little control over where big companies register to avoid tax, they
are often forced to raise other taxes in order to make up for lost revenues due
to corporate tax avoidance. (gibson, 2014)
.
Collapse
Globalization ties all countries together, so that
if one country collapses, the collapse is likely to ripple through the system,
pulling many other countries with it. In the history there have many examples
of civilization that has started from a small base, that gradually grew to
over-utilize their resource base, and then collapse. The new generation leader
will be dealing with this world situation which is not too different from this
era. The difference for the new generation leader is that there is a large
number of countries is involved, and this countries are increasing
interdependently. United States has the perilous financial condition and many
European countries and Japan are also in the similar poor condition. The
failure of one country has been the potential to pull many other downs, and
with it much of the system. In this era, when one area collapsed, there was
less interdependence and it was possible to let cropland ‘rest’ and deforested
areas re-grow. With the regeneration, and perhaps new technology, it was
possible for a new civilization to grow in the same area. As the new generation
leader are dealing with a world-wide collapse, it will be much more difficult
to follow this model (tverberg, 2013)
Conclusion
For the conclusion, although more point discuss about
disadvantages of globalization, globalization actually good for the future
economic growth. Creating a global job, increase of wages and promote
economic development of the country in technology actually will bring a lot of
good impact to an economic. Globalization
is something that all people realize and rapidly expand nowadays. Not only for
business, people also influence by it, such as social media. Technically they
all will be one of the part of globalization through their sharing, tagging and
uploading. Social
networks are now clearly in the ascendancy compared to other social media forms
such as blogs and user groups. Since 2009, they have emerged as the primary way
regular internet users stay in contact with each other. At the same year,
official company and brand web sites have typically been losing audiences. We
believe this is probably due, in part, to the emergence of social media
marketing by brands which is an increasingly pervasive MarComs practice.
Globally, 18 percent of users claim to have actively set up an online brand
community, arguably the ultimate expression of consumers wishing to control
their relationship with brands. (M, December 2011) . No doubt that all the user of this
technology is among the people that born in globalization era and also known as
Generation Y. They are freely accept the concept of globalization. When we look
for next generation, that born in most rapidly expending of technology, they will
be much more expert in using all of the technology by that time. The future
leader must know better how to handle the power of technologies during that
time. That can be the point of globalization is good when people apply it on
the right way. People can do many think in expending their business globally
through the full usage of internet. Sometimes they don’t need to go across
their national boundaries. For example, they can use courier to deliver their
product to customers globally. Courier companies also apply this globalization
to expend their business. So, why not people take an advantages on their
business. According
to the International Post Corporation, in 2008, the UE CEP market turnover was
37.4 billion Euros (business to business (B2B) and business to consumer
(B2C) parcels), and adding consumer to consumer (C2C), the CEP market turnover
could reach 42.2 billion Euros (Ducret, July 2014) .
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