CIBISOV PATRISIA 26515 PORTFOLIO:DISCUSSION QUESTIONS:CHAPTER 2

GLOBALIZATION
1.In what ways does globalization have an impact on either (a) your firm or a firm with which you are
familiar; or (b) your college?

The cultural aspect of the globalization is the first noticeable impact, due to a significant number of
international students that are in the college,but more importantly-in the university. Cultural change
and westernization are also in some way imposed to students, because no matter what is their origin
country,they have to adapt to the life and habits of UK in order to graduate, succeed in a job.If
so,they will also make some changes and contribute to UK’s prosperity.

2.Outline the main arguments put forward by the globalists, the anti-globalization lobby and the
sceptics. Which view do you support and why?

Main arguments of globalists:cultural convergence through markets,goods and services;increasingly

borderless world with increasing flow of goods and services,ideas,people;globalization as
anirreversible process of economic growth.

Main arguments of anti-globalists: recognize globalization but cite a number of issues that arise from
it:wide gap between rich and poor countries,richer ones having more benefits; exploitation of host
countries by big business,

Main arguments of sceptics:globalization is a trend;generally everything that is seen to be global as

economic,political,industrial and financial networks among the countries focuses more just on some
nations’ profit,specifically on those who have advanced economy.(America,Europe,Japan).

Personally,I agree with the sceptics because they look at globalization from both hyper-globalists of
the right and left perspective,which for me seems to be a more reasonable and extended analysis .
Globalization has occurred indeed, but it is just at the start of its evolution, more visible in business
and economics then in people’s mentalities. I would cherish that one day,when globalization will be
used efficiently as a tool for spreading knowledge and truth throughout the world, but not just all
sorts of products and goods, that are making the owners of big organizations richer and people’s
lives poorer in terms of consciousness.

3.Examining the main drivers of globalization, I assume that the most influential ones are the growth
in foreign direct investment, changing markets, technological innovations and multinational
corporations growing the trade more and more.

4.Assess the contribution of developments in information and communications technology to the

growth of globalization.

Technologies play their fundamental part in the globalization process, because without easy ways to
communicate information(computers,Internet) or send products(aviation) to any part of the world, the
flow of goods, services, ideas and people would have never occurred (globalization itself).

5.To what extent can you argue the case that large corporations have become as powerful as nation
states?

Regarding the outsourcing and off-shoring, it would be appropriate to assume that these are 2
strategies that corporations implement in order to gain more economic power on both local and
overseas firms .Not only is economy the affected area, but also the society itself, due to the fact that
corporations have power on people they employ, thus determining their lives from both financial and
economic(in addition, people that buy those goods) point of view ,same as nation states.
CIBISOV PATRISIA 26515 PORTFOLIO:DISCUSSION QUESTIONS:CHAPTER 2

6.With reference to offshore outsourcing, what are the benefits and problems for home and host
nations in terms of the economy, individual firms and employees?

Home firms,individual firms and its employees benefit from lower labor costs,higher wages,improved
GDP,cheaper goods and services,increased market,low costs of operating overseas employees,but
on the other hand, unemployment at home,lower quality products and lower standarts and the risk of
emerging competitors still seem to be the problems.

Host nations’ economy,firms and employees do well out of offshore outsourcing due to creation of
new jobs,higher wages in comparison with local ones,increased GDP through export sales
,development of local economies.Contrarily,some issues seem to be present too,as local firms don’t
have as many sales and profit as before,employees condition working for other suppliers embitter,
wages still may be low(to maintain profits for the offshore company) .

7.Contrast the main features of a transnational corporation with those of a multinational.

As a multination corporation implement its operations in one or more countries,so does a

transnational firm ,operating both locally and globally. Some of this operation include Foreign Direct
Investment,ownership,control of globally networked supply chain and systems of production for
multinational firms, and cross-border operations,technology transfer and low-cost operation in cheap
labor economies for transnational ones.In terms of strategy,multinational companies tend to form a
centrally planned global strategy,focusing on the diffusion of management ideas and
practices.However,transnational corporations are more prone to the reduction in the layers of
management and in the importance of hierarchies,concentrating their strategy on
flexibility,responsiveness,innovation,speed,integration ,market,supply and cost of more than one
single product.

8.Why have joint ventures emerged as an organizational form in a global economy? What are the
main criteria for the success of a joint venture?

Because of the disadvantage of carrying alone a business and subcontracting to an export agency
or contract provider, joint ventures emerged in global economy as more wise as strategic options,
due to the fact that working in collaboration with partners gives more productiveness in market
entry,cost-effective means of product development, distribution and competition.Futhermore,if
partner firms offer complementary core competencies and maintain a negotiated strategy,the joint
venture is more likely to be successfull.

9. What are the features and strategic rationale for a global production system?

Outsourcing, off-shoring,global supply chain and global factory are presented as the main features
of a global production system. The strategies center on the common goal of obtaining the maximum
number of advantages such as spending less on labor,rent and interest, but gaining more profit.

10. Identify such a system in both manufacturing and the service industries. Assess the advantages
and disadvantages of globalization from the perspective of (a) a consumer and (b) a small firm.