Globalization is a very integrated and comprehensive topic that is in constant evolution. Scholars have stepped in to conduct studies and researches in relation to globalization so to shed light essential in comprehension. The impact of globalization is a motion that is endless. The supporters argue that globalization has brought economic prosperity in the world in many ways while opponents associate most of the adverse effects with globalization. This paper will outline the impact of globalization in the context with the international business. The information will be useful as it will highlight the issues that are closely related to globalization and identify the existing ...view middle of the document...
The developed countries have increased market share of their products while the developing ones loose.
Foreign direct investment
Policies and technology evolution are responsible for the escalation of the foreign direct investment. Over the two decades, almost all the countries have engaged in the foreign direct investment due to the diplomatic and favorable policies that have been set globally. Despite the minimum effects that have been felt so far by the developing countries there are postulations that they are underway (Risse, 2005). The technology perspective is very essential in promotion of foreign direct investment in the world. This is because different countries are able to access all the relevant information about the processes of production practiced by the States that are economically stable.
This acts as a way of dissemination of information to the states that are not economically prosperous to ensure that they make informed decisions that will expand the economic gain. Further technology ensures that time and place utilities are emphasized in the world thereby increasing the value of the products due to the reduced operation costs that will make them more competitive. For example, region states in Asia are involved in partial processing of products while China specializes in the complete processing. China imports the partial goods from the regional states and exports the complete products to other countries like America, thereby ensuring economic prosperity in the world (Goldman, 2012).
The financial markets are in rapid integration because of globalization. After the Second World War, emphases were on fixed exchange rates and closed capital systems presented by Bretton Woods System. The national financial markets have now been taken to the global level through the political and technology perspectives. The Bretton Woods System has been disintegrated to come up with the revolution of international monetary systems (Goldman, 2012). Deregulation, innovation and internalization processes have been well incorporated to increase the capital mobility through policies. This therefore means that globalization is responsible for the policies that have been in place to ensure that there is capital mobility that will ensure economic prosperity in the world. The Information and communication technology, which is an effect of globalization, has led to increased capital flows in the world. This is because the knowledge especially which will boost the economic situation like, financial transactions and the foreign markets is well elicit across the globe. This will have a better impact on the emerging markets as the gain economically due to the growth in investments.
Globalization is well linked and intertwined with technology. Technology was very primal in the globalization process in many ways. The developed countries had the highest and transformed the level of technology to the rest of the...