Globalization

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Globalization

  1. 1. Term Paper On Globalization
  2. 2. Management Accounting Submitted To: James Bakul Sarkar Assistant Professor School of Business & Economics, United International University Submitted By: Name ID Md. Shakhawatul Islam 111 093 033 Shoaib Ahmed 111 093 185 Md. Abdus Salam 111 102 093 Muntasir Al Abedin 111 103 129 Ramita Atiq 111 121 227 Date of Submission: 8thMay, 2012
  3. 3. iii Letter of Transmittal May 8, 2013 To James Bakul Sarkar Assistant Professor School of Business and Economics United International University. Subject: Letter of transmittal for term paper. Sir, With due honor, we are wishing to inform you that it was a matter of great pleasure as well as learning to prepare term paper on ―Globalization‖ under the course of Management Accounting. To prepare the term paper, we collected and studied materials in due time and analyzed these and eventually finalize the term paper. Actually we have enjoyed more in preparing this term paper. Our team has worked hard to prepare this report. So we would be highly obliged if you kindly accept the content of the report. Though we have put our best efforts yet it is very likely that the report may have some mistakes and omissions that are unintentional. So, we hope that the report will worthy of your consideration. ……………………… On behalf of the group Md. Shakhawatul Islam ID – 111 093 033
  4. 4. iv Acknowledgement All praise to Allah! I would like to convey my thanks to a number of persons who helped me in completing this dissertation. The endeavor and strain undertaken by those cannot be left without recognition. First of all, I am immensely grateful to my respective Course Teacher, James Bakul Sarkar, Assistant Professor, School of Business and Economics, United International University for his guidance, valuable & thoughtful comments, and suggestion. We are very grateful to his for giving us inspiration and encouragement throughout our study. His untiring patience & attention to detail enable us to complete this dissertation & get it into its present form. However, all its limitations are considered. There is no doubt of the fact that preparing this group term paper has been a great experience for us as a student of BBA. Finally, our sincere gratitude goes to our friends & classmates who helped us whenever we needed. Despite our sincere efforts, there may appear some shortfalls in the report. We apologize for any such unintentional errors. Md. Shakhawatul Islam On Behalf of the Group
  5. 5. v Table of Contents Executive Summary....................................................................................................................... vi 1. Introduction:............................................................................................................................ 1 1.1 About Globalization:............................................................................................................. 1 1.2 Sources of Globalization:...................................................................................................... 3 2. Concept of Globalization:....................................................................................................... 3 3. Advantages & Importance of Globalization: .......................................................................... 4 3.1 Rising Economies: ................................................................................................................ 5 3.2 Demographics: ...................................................................................................................... 5 3.3 Commercial Demand:........................................................................................................... 5 3.4 Infrastructure Improvement: ................................................................................................. 5 3.5 Closed Market Systems Opening Up:................................................................................... 5 3.6 Develop Trade Opportunities:............................................................................................... 6 3.7 Economic Enhancement........................................................................................................ 6 3.8 Provide Outsourcing and Procurement................................................................................. 6 3.9 Natural Advantages:.............................................................................................................. 7 4. Limitation/Disadvantages of Globalization:........................................................................... 7 4.1 Other‘s Limitation or Disadvantages of Globalization:........................................................ 8 5. Globalization in respect of Bangladesh: ................................................................................. 9 5.1 Impact in Bangladesh:........................................................................................................... 9 5.2 World Bank‘s Predictions................................................................................................... 11 5.3 Globalization and the SMMEs............................................................................................ 11 5.4 The Recommendations are as follows: ............................................................................... 12 6. Conclusion: ........................................................................................................................... 14 7. References............................................................................................................................. 15
  6. 6. vi Executive Summary We are pleased to present this report as part of our academic part of Management Accounting. The world has become much more intertwined over the last twenty years. Reductions in tariffs, quotas, and others barriers to free trade; improvements in global transportation systems; explosive expansion in Internet usage; and increasing sophistication in international markets have creates a truly global marketplace. In the global marketplace, a company that has been very successful in its local market may suddenly find itself facing competition from halfway around the globe. Although globalization leads to greater competition, it also means greater access to new markets customers and workers. This is actually the process in which the economy is rapidly transforming as a single interdependent industry system. This is also a trend which has gained force throughout the entire world.
  7. 7. Term paper on GLOBALIZATION 1 1. Introduction: We live in a world that is highly interconnected by a bewildering array of complex economic transactions, social and environmental problems, and international political collaborations and conflicts. For Examples from global economics are found in the news every day. China as a major exporter of manufactured goods has affected wages in both rich and poor countries because of globalization. As large corporations, such as Microsoft, Intel, Toyota, General Electric, and Siemens have expanded their investments in affiliates in many nations around the world, they have built global production networks that share technological knowledge across locations to produce increasingly complex goods that could be sold anywhere. Today, a major cultural product, such as a Hollywood movie or a jazz band‘s latest compact disk, is likely to employ creative personnel from around the world, with various components of the product recorded, mixed or edited in different locations. The importance of international connections in trade, investment, and skilled services can be illustrated by considering the apparently simple act of making and bringing to market an item of apparel, say a fashionable woolen men‘s suit. The initial task is to design the suit, a highly creative activity that generally takes place in the headquarters of a major fashion label, such as Armani or Hugo Boss. Beyond that, the firm must locate reliable suppliers of raw wool, which could be farmers in New Zealand, Argentina, Scotland, or elsewhere. The wool needs to be spun into yarn and then woven into finished fabrics, tasks that are likely to be done in low-wage economies with abundant labor, such as Vietnam or Bangladesh, both major centers of fabric manufacture. The fabrics then are shipped to locations where they are combined with such other materials as buttons and zippers into high-quality sewn garments. 1.1 About Globalization: Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well- being in societies around the world. Globalization see is the process of international integration arising from the interchange, products, ideas, and other aspects of culture.
  8. 8. Term paper on GLOBALIZATION 2 Globalization is not new, though. For thousands of years, people—and, later, corporations— have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages. Likewise, for centuries, people and corporations have invested in enterprises in other countries. In fact, many of the features of the current wave of globalization are similar to those prevailing before the outbreak of the First World War in 1914.globalization refers to processes that promote world-wide exchanges of national and cultural resources. Advances in transportation and telecommunications infrastructure, including the rise of the Internet, are major factors in globalization. It‘s generating further interdependence of economic and cultural activities. The term globalization has been in increasing use since the mid-1980s and especially since the mid-1990s in 2000; the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital and investment movements, migration and movement of people and the dissemination of knowledge. Further, environmental challenges such as climate change, cross-boundary water and air pollution, and over-fishing of the ocean are linked with globalization. Globalizing processes affect and are affected by business and work organization, economics, socio-cultural resources, and the natural environment. But policy and technological developments of the past few decades have spurred increases in cross-border trade, investment, and migration so large that many observers believe the world has entered a qualitatively new phase in its economic development. Author Thomas Friedman has said that today globalization is ―farther, faster, cheaper, and deeper. This current wave of globalization has been driven by policies that have opened economies domestically and internationally. In the years since the Second World War, and especially during the past two decades, many governments have adopted free- market economic systems, vastly increasing their own productive potential and creating myriad new opportunities for international trade and investment. Governments also have negotiated dramatic reductions in barriers to commerce and have established international agreements to promote trade in goods, services, and investment. Taking advantage of new opportunities in foreign markets, corporations have built foreign factories and established production and marketing arrangements with foreign partners. Technology has been the other principal driver of globalization. Advances in information technology, in particular, have dramatically transformed economic life.
  9. 9. Term paper on GLOBALIZATION 3 1.2 Sources of Globalization: The concept of globalization has numerous definitions, depending on the globalization occurs when the markets of different countries become more integrated and interconnected through economic transactions that cross national borders. These transactions can being real merchandise, various forms of services, financial instruments, Investments in local production facilities by multinational firms (a process called foreign direct investment, or FDI), temporary and permanent labor migration, and technological information. Further, globalization can also mean that countries liberalize their import protocols and welcome foreign investment into sectors that are the mainstays of its economy. Globalization also means that countries of the world subscribe to the rules and procedures of the WTO or the World Trade Organization that oversees the terms and conditions of trade between countries. There are other world bodies like the UN and several arbitration bodies where countries agree in principle to observe the policies of free trade and non-discriminatory trade policies when they open up their economies. 2. Concept of Globalization: The concept of globalization is global and dominant in the world today. But, it was not handed down from heaven, it was not decreed by the Pope, it did not emerge spontaneously. The dominant social forces in the world today to serve their specific interests created it. Simultaneously these social forces gave themselves a new ideological name the - ―International Community‖ - to go with the idea of globalization. Globalization has largely been driven by the interests and needs of the developed world; 1994 Globalization has turned the world into the big village. This in turn has led to intense electronic corporate commercial war to get the attention and nod of the customer globally. This war for survival can only get more intense in the new millennium. It is needless to distractedly search for any premise other than the foregoing to commence the analytical examination of the holocaust effects of globalization particularly as it concerns the African continent. It should be stated, however, that the extent of these effects as well as the coping ability/capacity of its victims are explainable within the context of human history, which, on
  10. 10. Term paper on GLOBALIZATION 4 its own has not been static, and which had continuously evolved with the society itself over the years. In the course of this evolution, various developments and changes had taken place. These changes or developments had, in most cases, affected the systemic existence of humankind per se regardless of the geo-political location within the universe. Within the parameters of the foregoing, globalization could be correctly defined from the institutional perspective as the spread of capitalism. However, it is germane to adumbrate that the collapse of the Eastern bloc in the late 80s and early 90s led to the emergence and ascendancy of global economy that is primarily structured and governed by the interests of Western behemoth countries, thus, facilitating the integration of most economies into the global capitalist economy. With the demise of the Eastern Europe in the early 90s, capitalism as an economic system now dominates the globe more than it had been at any time in its history. Even, China, by far the largest non-capitalist economy, has undergone dramatic changes in its international economic policy orientation, and, is today the recipient of almost one-half of all foreign direct investments that go into developing nations - this is a country that essentially blocked all foreign investments until the 1980s (United Nations, 1995b) 8.Globalization is one of the most charged issues of the day. It is everywhere in public discourse – in TV sound bites and slogans on placards, in web sites and learned journals, in parliaments, corporate boardrooms and labor meeting halls. 3. Advantages & Importance of Globalization: The importance of globalization in business is extremely undeniable due to its innovative and progress that helps business to stand firmly despite of the gradual financial crisis. Globalization is one of the most disputed issues facing by businessmen nowadays. This is actually the process in which the economy is rapidly transforming as a single interdependent industry system. This is also a trend which has gained force throughout the entire world. Loaded by various advances different aspects such as business, transportation technology, and communications, globalization provides a fast melding of industry culture throughout the world as well as the development of innovative marketplaces to operate trade between physically distant people.
  11. 11. Term paper on GLOBALIZATION 5 3.1 Rising Economies: Over the past decade, China has routinely experienced 8 percent to 9 percent annualized growth and India has followed closely with 7 percent annualized growth. 3.2 Demographics: For the most part, these markets represent younger populations, growing numbers of well- educated professionals, an expanding middle class, growing consumer bases, urbanization, and rising incomes. In addition, the structure of family life for these modern middle class populations is assuming the ―western‖ nuclear form and moving away from the more traditional extended cohabitating family unit. 3.3 Commercial Demand: The economic expansion, as well as the presence of global companies that bring employment oriented around intellectual capital, is creating demand for modern, western style commercial real estate infrastructure. Core assets such as office, industrial, retail, multi-family, and hospitality are all experiencing rising demand. 3.4 Infrastructure Improvement: While communications, utilities, and efficient transportation can still be spotty in areas, it is much improved over what one would have experienced even a decade ago. In most metropolitan areas you will have most of the creature comforts that you experience in the United States. 3.5 Closed Market Systems Opening Up: Most successful emerging markets have been engaged in systematic reform of basic societal values we take for granted in the developed world. These include property rights, legal process, and published regulations and statues. In addition, specific reforms such as privatization of state owned industry, relaxation of capital controls, and liberalization of rules regarding foreign direct investment are all encouraging growth and investment.
  12. 12. Term paper on GLOBALIZATION 6 3.6 Develop Trade Opportunities: Developing different business establishments is one of the most important factors of globalization. Through this, it gives new opportunities for exporting and importing goods and services. Communication is one of the most major powerful drivers of globalization. For instance, the international business language is the English. Using this language, businessmen from US can easily and communicate with other businessmen who can also fluently communicate with client in China. The fast melding of industry etiquette aids to operate business communication. Aside from communication opportunities, globalization also associated with practical opportunities in which people can be given a chance to work based on their intellectual skills. 3.7 Economic Enhancement Globalization offers new chances to undeveloped countries through allowing them connect to new markets throughout the world. For instance, India and China have ridden the line of globalization all over the years. Due to this, both countries have focused on economic development through improving the power services and actual working services. Globalization also focused on the inner economic business plan in which every entrepreneur provides different trade opportunities to the people. In addition to that, economic and globalization work together to develop and produce a highly improve nation in terms of business aspects. 3.8 Provide Outsourcing and Procurement The development of global market and progressions in intercultural communication makes a wealth of business and trade opportunities to source labor and low-cost equipment. The said outsourcing is a process when less economic expensive, the foreign labor is being used for activities conventionally executed at home. In some countries, this process is appeared as growing unreliable. However, in India and Philippines, outsourcing provides unparalleled economic trade to the people in terms of gaining more jobs in media and communications aspects.
  13. 13. Term paper on GLOBALIZATION 7 3.9 Natural Advantages: Earning connection to markets throughout the world allows each country to completely influence its own distinctive natural advantages. For further information, natural advantages allow countries in a particular region to manufacture native products or commodities at a cheaper price or higher quality. However, natural advantages do not focus more on the economy. For instance, a particular country mainly produces oil, but instead it exports the product to other country, resident of the country use it for their industries. In order to meet increased consumer demand many businesses are attempting to expand their geographic footprint and extend their value chain to an international level. The impact of globalization on business is best evidenced by the huge proliferation in cross-border transactions. In order to protect yields and maintain competitiveness, businesses are continuing to diversify their footprint as it lowers the beta factor on their investments by spreading risk across a broader market. 4.Limitation/Disadvantages of Globalization: First of all, it has been asserted that globalization provides the increasing of productivity and life standard of societies. To begin with productivity is indeed increased as it can be seen that the population of the world is rising rapidly even uncontrollable and more people means that there is a need of more product too. Thus Globalization responds the needs of 7 billion people. Moreover the standards of life is a lot better than 50 years ago as they are more machines and systems invented in developed countries supporting all world. However there is another side of the facts. Globalization causes the poor citizens having more requirements. Secondly cultural intermingling is enlarging with globalization which lets the people from all over the world able to communicate easier. On the other hand sharing traditional behaviors causes them fading as boundaries are disappearing. The most important disadvantage of globalization is the increasing number of the loafer. After the industrial revolution, industry gravitated some particular countries. Because of that, these countries became a power in industry. However production decreased and so
  14. 14. Term paper on GLOBALIZATION 8 unemployment was raised in the other countries. Another reason of the unemployment rise is that the need of less manpower. As stated at Wikipedia, many workers found themselves suddenly unemployed, as could no longer compete with machines which only required relatively limited work to produce more product than a single worker. Another major damage of globalization is that some cultures are getting lost. The cultures of the countries that have more economic power are more dominant than others. Because, wealthy countries produce many things that can affect cultures, for example, clothes, movies and technologic products. According to Ikerd, while the global community is increasing, more and more people have become ignorant about social, ethical and moral values which are various in defining groups. (2002) Therefore, globalization damages small cultures which are in risk of being extinct. Big Disadvantages: The final significant effect of globalization is the difficulty of competition. With globalization, trade between the countries has been started to remove limits. This situation of enterprises has prepared the ground to be in constant competition with not only national competitors but also international competitors. Therefore, business requires being in a more rigorous and challenging competitive atmosphere to maintain continuity and development. Rising of monopole companies and trough among production costs are the main effects of this hard competition in business. As pointed in Global Policy Forum, undeveloped countries choose to use foreign capital for their improvement however it disposes the equality and stability instead. In conclusion, unemployment, social degeneration and difficulty of competition are the killer disadvantages on people life that based on globalization. In my opinion, people must be aware of this exploitation. Globalization is a one-way tale. 4.1 Other’s Limitation or Disadvantages of Globalization: There are also some limitations or disadvantages of globalization which are badly impact on business. Some of those are -  Globalization causes unemployment in industrialized countries because firms move their factories to places where they can get cheaper workers.  Globalization may lead to more environmental problems. A company may want to build factories in other countries because environmental laws are not as strict as they are at home. Poor countries in the Third World may have to cut down more trees so that they can sell wood to richer countries.
  15. 15. Term paper on GLOBALIZATION 9  Globalization can lead to financial problems. In the 1970s and 80s countries like Mexico, Thailand, Indonesia or Brazil got a lot of money from investors who hoped they could build up new businesses there. These new companies often didn‘t work, so they had to close down and investors pulled out their money.  Some of the poorest countries in the world, especially in Africa, may get even poorer. Their population is not as educated as in developed countries and they don‘t have the new technology that we do.  Human, animal and plant diseases can spread more quickly through globalization.  Globalization is direct attack on local tiny and small industry.  Global companies with hi-fi infrastructure almost ruin the local traditional small and medium industries.  Globalization can increases cut throat competition.  Globalization increases monopoly by countries equipped with know-how and power.  Globalization increases the gap between the poor and rich.-income inequalities- poverty trap, cultural convergence-more people are moving towards the western fashion, environmental human-resources are used up-scarcity-creates externalities- pollution-waste products; demand more of skilled workers and causing redundancy of skilled workers. 5. Globalization in respect of Bangladesh: 5.1 Impact in Bangladesh: The foreign policy of Bangladesh should focus to broaden the scope for prosperity through the creation of a modern and efficient economy. It is mandatory for Bangladesh to make diplomatic efforts to make it possible for the Bangladeshi workers to work in other countries where there rebutter opportunities.  Good Governance: Openness in government operations should be the rule rather than the expectations. This has two implications for macro-economic performance. Firstly, it will expedite economic decisions as it will follow an open process and will not be turned in to deal making as it
  16. 16. Term paper on GLOBALIZATION 10 usually is. Secondly, it will secure the commitment of the nation to any programmed of action.  Poverty Alleviation: Poverty is a source of insecurity for Bangladesh. But whether globalization as such would alleviate poverty is debatable. However, the alleviation of poverty depends on the capacity of Bangladesh to mobilize resources in an optimum way. There is something that can be achieved if there is political stability inside the country.  Access to Markets: Bangladesh has to negotiate preferential access tithe markets of the western developed countries, as well as those of India and China, huge trade gap in the bilateral trade relations has to be redressed. In the era of competition, Bangladesh will not necessarily get what it thinks to deserve but only what it can negotiate.  Infrastructure Development: Infrastructure investment deserves priority attention because of its potential for employment generation. Institutional strategies can be pro-poor on the one hand and on the other indifferent to poverty problem if not adverse outright. Institutional reforms aiming at empowering the poor are fundamental to poverty eradication. The various strategic can be in the areas of labor policy, land and tendril laws, credit system, small and medium enterprise (SME) development and above all restructuring of local governments  Strengthening Other Sectors: Bangladesh should utilize revealed strengths unready Made Garments (RMGs), NGO-MFIs and give incentives to the farmers to produce more. We must try to reduce our weaknesses in delivery of certain public services such as education and health, law and order.  Qualitative Education: Enrolling more girls to school and colleges is good provided they obtain certain skills in language and quantitative analysis in the least. Currently very little is learnt and the system
  17. 17. Term paper on GLOBALIZATION 11 losing failure to public examination is huge. Education must be an essential element in poverty reduction strategy.  Framing of Development Strategy: Trade policy should not form the basis of an overall growth and development strategy in the policy of Bangladesh. The development strategy must be constructed around country specific characteristics in a manner that efficaciously manages trade associated with globalization. 5.2 World Bank’s Predictions World Bank envisaged that Bangladesh needs 50 million jobs in next 25 years‘ time, which means each government must create 10 million jobs during the tenure of their 5 years term. In its report ‗building a nation‘ the World Bank has also recommended eight objectives of Bangladesh, which are: i. Significant reduction of poverty level, ii. Increase of average GDP between 7-8%, iii. Universal adult education, iv. Primary health care, v. Environmental protection, vi. Well planned urbanization, vii. 50 million job creation, viii. Competitive marketing exposures and significantly increasing per capital FDI by 2020. World Bank also recommended budget deficit to 2% of GDP in place of present8%. Government is trying to reduce the gap to 5.6%, which was 5.9% in the previous year. In1900, foreign assistance was about 4.8% of GDP which in 1998 came down to 2.4% of GDP. 5.3 Globalization and the SMMEs Increase in export does not indicate that the SMMEs in particular will be able to survive comfortably under the present WTO regime. There are about 50,000 SMMEs in the country registered with different trade organizations. The factors affecting the SMMEs due to globalization are:  Competition (price, delivery, after sales service)  Technology (modern, cost saving and quality assurance)
  18. 18. Term paper on GLOBALIZATION 12  Policy (competitive with other countries and business friendly)  Skill (commensurate with technology and techniques)  Institutional and Infrastructural support (information, communications and business support)  Market (additional market exposures for existing and new products and services) and  Good Governance (efficient management with required knowledge and skills) 5.4 The Recommendations are as follows: Third world government‘s fear that the WTO could use the Uruguay Round provisions on investments to seek further liberalized services and investments. Domestic enterprises in the South will find it increasingly difficult to survive, should the big transnational decide to target their markets. Rich countries should implement plans they made, particularly on freer trade in agriculture and textiles. Implementation of Uruguay Round commitments had been discussed35 times at WTO headquarters but with no effect. WTO members will take a hard look at the chances of launching a new cycle of trade liberalization talks in two months‘ time. Many of the 142 WTO members back the idea of kicking off a new round of negotiations in November, although the sources stress that a lot of work still needs to be done fairly quickly. Anti-globalization demonstrations are visible, from Seattle to Genoa to Johannesburg. The Globalization process must be reformed to take into account the need and aspirations of the South. Oxfam International said that the 15-nation European Union is the most protectionists of the major trading entities. EU claimed that their farm budget has been frozen at 0.50 percent ford until 2006, compared to 0.70 percent in the USA. EU is by far the biggest importer of food from developing countries.  Go for Globalization which helps specialization.  Economic diplomacy and annual business targets for foreign missions.  Developing countries should be out-warding looking than in-ward looking.  Improvement of negotiation skill for Bangladesh needed.  Business Executives should be employed as ambassadors.  Backward linkage industries must be established for export sectors.  25% Cash incentives to exporters without unnecessary audit burden.  Patriotic zeal of the importers and consumers must to void unnecessary imports.
  19. 19. Term paper on GLOBALIZATION 13  Services exports are increased substantially.  Clear accountability of government officials with reward and financial punishment provisions.  Program for effective awareness on the impact of globalization should be made.  Government must have an integrated policy to face the challenge of globalization.  A Globalization Council should be formed.  Export Development, Research and Training Institute should be instituted.  Expansion of Export Development Fund with simplification of export procedures.  Drastic reduction of cost of doing business.  Establishment of Skill Development Training Institutes.  Ensure anti-dumping and countervailing duty measures.  Developed countries should stop giving subsidies to their farmers because it uphold an uneven playing field for the farmers of poor countries which are not giving subsidies.  Simplification of tax and all other laws.  Improvement in business Language and Communication skills.  Good governance at all levels. In the early stages of the Uruguay Round, countries like Brazil and India put up a stiff fight. During the final two years, however Southern resistance melted down. The TRIPS agreements going to make medicines more expensive in Third world countries having pharmaceutical industries and open the door for patenting of life forms and modified genetic materials. To safeguard, the country from the harmful influence of the WTO the following steps may be taken in respect of pharmaceutical sector: o To avail the shortcomings‘ opportunities of the TRIPS and compulsory licensing o To utilize the opportunities during the transitional period o To avail the regulatory exceptions o To expand medicine exports to LDCs o Establish Research and Development Laboratories o Restrict parallel imports o Expansion of Public Health Facilities o To enter the world‘s generic market
  20. 20. Term paper on GLOBALIZATION 14 6.Conclusion: Globalization is one of the furthermost dubious issues facing by businessmen nowadays. This is actually the process in which the economy is promptly converting as a single interdependent industry system. This is also a trend which has gained force throughout the entire world. Loaded by various advances different aspects such as business, transportation technology, and communications, globalization provides a fast melding of industry culture throughout the world as well as the development of innovative marketplaces to operate trade between physically distant people. Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. Globalizing processes affect and are affected by business and work organization, economics, socio- cultural resources, and the natural environment. Although it has some limitations, but it also has as any advantages that is really helpful all people around the world.
  21. 21. Term paper on GLOBALIZATION 15 7. References  Managerial Accounting by Ray H. Garrison, Eric W. Noreen, Peter C. Brewer – Chapter no. 1, Page no. 2  http://www.globalization101.org/category/issues-in-depth/culture/  http://en.wikipedia.org/wiki/Globalization  http://www.globalpolicy.org/globalization.html  http://ruud.hubpages.com/hub/Disadvantages-of-Globalization  http://wiki.answers.com/Q/Factors_affecting_globalisation  http://www.enotes.com/homework-help/list-advantages-disadvantages-globalization- 113517  http://www.english-online.at/economy/globalization/advantages-and-disadvantages- of-globalization.htm  http://wanttoknowit.com/advantages-and-disadvantages-of-globalization/  http://uk.answers.yahoo.com/question/index?qid=20061010150323AAEc8cQ

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