1. BOGLIETTI LAURA
MBA1B
INTERNATIONAL MARKETING
Question 1: In your opinion, is globalization inevitable? Are the overall benefits of
globalization positive? What are the gains and losses from globalization?
I think Globalization is inevitable. The society evolves; the human brain makes
discoveries every day and the technological progress is absolutely incredible! Advancements
in transportation and communication are making people more aware of what exist in other
countries. Market changes all the time. Now thanks to the technological expansion, the
liberalization of government policies… each country is connected with the others and this
new evolution has “destroyed borders”. Each country becomes a precious source of
production and sales. These factors seduce the governments and the companies who want to
invest abroad thinking that it is so benefit for the country. Companies will find beautiful
opportunities to make profits which often come from outside their home country. All the
world becomes is now accessible. The technological expansion makes some people
interdependent and it is the same thing for economy: now all the countries are interdependent
creating a kind of interdependent “world economy”. It’s sure! Globalization is inevitable: It is
obvious! When countries become interdependent, it is then impossible to return behind: the
machine is on the way, we cannot stay any more away from it, countries are obliged to accept
this interdependence otherwise their economy is going to sink. It is as a building: every stone
which we add allows at the end to obtain a beautiful building: it exists thanks to each of these
stones, if one of her is removed, the building breaks itself. This is a real interaction between
different people, buyers, sellers… from different countries.
But Globalization can be criticized. In fact, it can create disparities between countries:
some of them dominate the others and some of them undergo. Some people lose and others
gain. Another point of view; countries diminish their sovereignty. A very important thing
when we speak about losses from globalization is the problem of the culture. Every country
has an identity thanks to its special culture, special traditions and customs… Globalization
destroys some cultures for the benefit of one special culture which dominates the world. For
example the American culture with fast-food, Coca-cola, Mc Donald’s, Hard Rock café… We
can speak about “acculturation” in France or “Americanisation des cultures”.
Yes, Globalization is a source of profits: a lot of countries like USA, Canada and
Western Europe have created economic growth and a lot of jobs! During a long time, foreign
investors poured millions into developing countries like China, Brazil, Mexico, India… So
some of these countries are developing more and more thanks to foreign investments. But, it
creates inequalities inside the country, between people because foreign countries often take
advantage of cheaper labor supply. It is a real problem. The cost-savings from using cheaper
labor go mainly to shareholders in developed countries rather than to consumers or to
stakeholders in developing countries.
About inequalities, there is another problem: some countries lack the basic
infrastructure and education to participate fully in globalization and so have become less
developed than others.
2. In conclusion, everything goes very fast because of the globalization, the capital flows are
very important, countries become dependent of the others in the detriment sometimes on
others. The working conditions in certain countries to answer at the request of other countries
are sometimes very hard. It is about a real world sprint where it is necessary to be in great
shape!
Question 2: What external influences do a company encounter when determining how
and where to conduct business globally?
There are a lot of external influences which determine how and where to conduct a
business globally.
Mostly foreign companies want to invest abroad to find cheaper labor and then to increase
profits and millions! The globalization is in a way a capitalist system: every country looks for
its personal interest. Certain companies relocate in countries because of the cheaper labor. It is
a great opportunity to dominate the market and make a lot of profits. This system stresses the
“hierarchy” within a company. The employees are not all at the same level and the profits are
more put back to the shareholders than to the local employees.
The cheaper labor is, to my opinion, an external influence which determines where to conduct
a business. Obviously, Private companies of rich countries choose “poor countries” to
maximize the opportunities of making profits.
Some countries avoid paying taxes too and avoid adhering to strict environmental and labor
standards by moving operations to countries with more lax regulations than their home
countries. It is an easier and faster mean to earn money.
The need to dominate the world is also an external influence: some countries want to relocate
to impose a lifestyle, a culture, to sell of the dream. It is a kind of big advertising. We can
speak about world advertising. The purpose always being to create profits.