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Henry Fan
ENG 1S
Valerie Fong
6 May 2015
Inevitability of Globalization
Globalization enabled my mother to have the successful career that she did. Coming from
a rural town in Chengdu, China, a family of seven, her entire familys worth of breakfast
composed of one single egg, mixed in flour and water, which would be the only breakfast item.
There were countless evenings when she would eagerly wait beside the fruit stands at the farmers
markets to gather the unwanted or trimmed off fruit, such as a piece of rotting apple or oranges,
from the sellers to eat. But once my mom immigrated to America, she was able to gather
innovative quality products from around the world because of globalization. She leveraged those
products as her competitive edge paired with her sales expertise, in her interior design trading
firm, which ended up being paramount to her success. However, globalization allowed material
managers in 2015 to view design bids electronically. Without having our own manufactory of
products and manufacturing prices, it has become exponentially difficult to be competitive in the
interior design trading business.
Globalization affects the economy, business life, and society in ways such as
manifestation of technology, increase of competition, and cheaper resources, which has affected
many corporations or individuals. These changes are mostly related to international development,
knowledge and information transfer, and expansion of markets. To understand these changes,
companies and people need to keep in mind the main effects of globalization. Because
definitions, descriptions, and visions of globalization vary, it is difficult to know what it means

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for businesses to go global. Some argue that globalization is assisting the economy and
businesses by utilizing technology and newfound resources. On the other hand, some contend
that globalization is declining economic flow across local and national boundaries because the
expansion of markets leads to increased global competition, while cheaper resources for some,
may mean more expensive resources for others. Still others maintain that globalization is
inevitable for the world economy with the interconnections, between overlapping interests of
business and society. Our discussion of globalization is in fact addressing the larger topic of the
higher level of thinking and strategizing. My own view is that globalization is able to help the
world as a whole. Ultimately we should understand how we could use globalization to benefit
ourselves as well as the people we are around, while beginning to talk about the inevitability of
globalization because some people are ignoring the concepts effectiveness in the world as a
whole.
To understand the higher level of thinking and strategizing regarding globalization, we
must first understand what globalization means. Globalization is the closer integration of
countries and people of the world which has been brought about by the enormous reductions of
costs of transport and communications and the breaking down of artificial barriers to the flow of
goods, services, capital, knowledge and to a lesser extent, people across borders. Valerie Fong, a
brilliant English professor who has also worked in business, defines globalization as mobility of
information, capital, and people. Another definition of globalization by Barbara Parker, a
globalization and international management professor, states, an umbrella term for a complex
series of economic, social, technological, cultural, and political change seen as increasing
interdependence, integration and interaction between people and companies in disparate
locations. This increase in investment of different categories in so called series for a country,

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or one self, is aided by the increase in information technology and communications, which has
advanced significantly over the last two decades with the innovation of the technology.
While some perceive globalization to create one world, the reality is that people
disagree on the consequences. With technology, a characterization of one world globalization
exposes most people in the world to many more people and ideas whose perspectives on
globalization differ. The strength, experience, and evaluations of global interconnections differ
around the world as well. The same global event may be perceived to create opportunities for
some and create threats for others. (Parker) Due to the global competition my mother did not
have a decade ago, her business is declining rapidly from these international companies
penetrating Chinas market. Neither does the world think as one with respect to business
activities: some believe global business benefits the world and others believe it degrades it.
If we observe one of the most striking demonstrations of globalization, the use of new
technologies by entrepreneurial and global businesses to exploit new business opportunities, in
the world of business activities, companies are always seeking for what benefits they can obtain
while degrading other business. Internet and e-commerce businesses (Twitter for branding,
Amazon for selling) have potential for small medium businesses seeking to broaden their
involvement into new international markets. Technology is also one of the main tools of
competition and the quality of goods and services while requiring a lot of cost for the company.
The company has to use the latest technology operated by tech savvy people, for increasing their
sales, marketing, and product quality. Globalization has increased the speed of technology
transfer and technological improvement. Customer expectations are directing markets for
businesses. Companies in capital intensive markets are at risk and that is why they need to adapt
rapidly to customer and market expectations. These companies have to have efficient technology

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management and efficient research and development management, to stay competitive in the
global market, because globalization is inevitable.
We should understand the inevitability of globalization will lead to increased
competition; explained by Rick Wartzman, editor of Management, Society, and Economy,
product and service cost and price, target market, technological adaptation, quick response,
quick production by companies etc. When a company produces with less cost and sells cheaper,
it is able to increase its market share. Customers have a larger multitude of choices than ever
before in the market and this affects their behaviors: they want to acquire goods and services
quickly and in the most efficient way possible. They also expect high quality and low prices. All
these expectations need a response from the company, otherwise sales of company will decrease
and they will lose profit and market share. A company must always be ready for price, product,
service and customer preferences because all of these are global market requirements.
In the global market, there is more trading and outsourcing going on than ever before. A
consequence of bilateral trade agreements, acknowledge by Freeland, a editor for the Financial
Times, is, preference to certain countries in commercial relationships, facilitating trade and
investment between the home country and the foreign country by reducing or eliminating tariffs,
import quotas, export restraints and other trade barriers. Competition may be the access to
cheaper resources. Until the start of the 1990's, the People's Republic of China was largely closed
off to the rest of the world. Many companies in the United States produced their goods either
domestically or in areas with slightly less expensive labor. When China opened its market to the
rest of the world, American companies were able to take advantage of the far cheaper labor and
trade. This is known as outsourcing. Cheaper labor contributes to cheaper costs, which in turn
contributes to larger profits. Sometimes, but not always, this may mean cheaper products and

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services. But one may ask are these cheaper resources being dominated and utilized by bigger
corporations? Do these cheaper resources help everyone? Issues such as the industrial pollution,
water pollution, air pollution, waste, and soil contamination are all consequently occurring to
these outsource labor countries. This is a broader topic that should not be ignored, because some
companies could financially afford to source, rather than outsource, in their own country but
choose not to do so because of greed.
I address the topic of greed because like globalization, it is at times inevitable. In
international development, a consequence of globalization arises the combination of both
expanded markets as well as cheaper resources. A prime example of this is India. Before the late
90s, the information technology in India was largely undeveloped. However, Parker reminds us
that, coupled with an educated yet inexpensive workforce, foreign companies were able to start
subsidiaries of high tech activities in cities like Bangalore. This technological education spread
to local firms, as a result grew into the expanded markets both in India as well as the rest of the
world. But with these cheaper resources, are companies paying enough for these resources and
talents in the expanded markets due to globalization? According to pay scale the average
annual salary for a software engineer/developer in India gets paid 357435 rupees. Thats
$5584.92 rounded up to the nearest cent, which equates to $465.41 dollars per month, before tax.
Sure, some engineers get paid more, but looking at the range from the national salary data of pay
scale, the top end of that salary range caps off at $10,000 and dives as low as $2500 a year. Is
that really how much multi billion dollar companies should be paying there engine to run their
company? I guess if it were to just a physical engine it may pass as reasonable, but these are
humans were talking about; a human, software engineer, that does not have any cheaper means
of living, than a human, Chief Executive Officer in the same environment.

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On the topic of value of information, Panos Mourdoukoutas, who published several
articles in professional journals and magazines, including Barrons, The New York Times, Japan
Times, and Management International Review, observes that information is a most expensive
and valuable production factor in the current environment. Information can be easily transferred
and exchanged from one country to another. If a company has a chance to use knowledge and
information then it means that it can adapt to this global changing. This issue is similar with the
technology transfer issue in global markets. The rapid changing of the market requires also quick
transfer of knowledge and efficient using of that knowledge and information is critical for a
business to strategize to go global.
From the business perspective, information transfer is primary beneficial, but one effect
of globalization is that of expanded markets. This means that a business that had previously only
sold its goods domestically can start selling products to other countries. One example of
expanded markets includes my mothers interior design trading business. Before when countries
such as China was only under the influence of communism and solely had access to interior
design goods that were produced domestically or in other communist markets, my mom took
advantage of this when she saw all the global products during her travels as a flight attendant.
This was due to trade barriers with the West. When China opened to the rest of the world,
Western economies that were not under communist influence were able to expand their markets
to former communist countries. This in turn increased their profit potential, and became a threat
to my mothers business.
The future of all businesses and globalization is important because the furthering of
globalization is inevitable. Businesses and individuals will grow to limited restrictions of global
lines. Globalization is a key factor for businesses as well as individuals looking to succeed, and

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achieve higher level of thinking and strategizing. This new era of globalization brings with it
opportunities and also new considerations and challenges of a free market. Globalization gives
access to benefit from the international division of labor, technologies, international
specialization, while consumers enjoy a wider variety of products at lower prices. With
globalization, there comes a better and competitive world with more opportunities, as long as
companies and individuals operate with moral and ethical standards and keep finding their niche.
Businesses evolve in new ways from generation to generation, now more than ever, is the time to
take advantage of globalization to change your life, or your business for the better.

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Works Cited
Parker, Barbara. Introduction to Globalization and Business: Relationships and Responsibilities.
London: SAGE, 2005. Print.

Mourdoukoutas, Panos. "The Good, The Bad, And The Ugly Side Of Globalization." Forbes.
Forbes Magazine, Sept.-Oct. 2011. Web. 05 May 2015.

Freeland, Chrystia. "Globalization Bites Back." Atlantic 315.4 (2015): 82-86. Academic Search
Premier. Web. 5 May 2015.

Wartzman, Rick. "What Globalization Really Means | TIME.com." Business Money What
Globalization Really Means Comments. N.p., Oct.-Nov. 2013. Web. 05 May 2015.

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Memo
Focus/Thesis: I refined my thesis so that I can prep my reader in how the rest of the essay would
pan out. Acknowledging consequences, then discussing opportunities, then concluding with the
idea that globalization is ultimately inevitable.
Organization: I reread my paragraphs and tried to compose better topic sentences after rereading.
Valerie mentioned how I should organize the essay by starting off with a neutral definition and
explanation of what happens under globalization, then transition to consequences, and then to
benefits.
Paragraph Focus: I believe what made the draft may have been unfocused was because I was
writing in a neutral standpoint for a lot of the definitions, explanations, consequences, benefits.
But I refined my paragraphs a bit more with better topic sentences, transitions, and content