What is Globalization?

Globalization is the changing of the world from many economies, cultures and societies into a single one. The term is primarily used to refer to economic globalization. However, it is also used to address political and social changes around the world. Globalization is extremely controversial. There are many positive and negative impacts from its spread. History The term globalization was first used by social scientists to refer to the evolution of separate human societies into a single global society. !xamples of this are ancient empires trading with each other and world wide alliances during World War " and World War "". #y the $%&'(s, the term was commonly used for specifically economic globalization. "t refers to worldwide trade lin)ing economies together in such a way that they are all interdependent. #enefits "n the late *'th century and early *$st century, the economies of +hina and "ndia grew at a staggering rate. The two most populous nations on !arth modernized their infrastructure and lifted millions of people out of poverty. They produced inexpensive goods that were exported around the world. This helped improve the lives of people in those countries. "t is also argued that these economic benefits encouraged democracy and made +hina more receptive to human rights. Globalization is credited with spreading understanding between cultures as they become more familiar with each other through trade. Globalization !ffects +onsiderations +ritics of globalization point to the uneven gathering of wealth. While the poor ma)e modest gains, the rich get much richer off of global trade. +heap manufacturing in some countries means closed factories in others. Wor)ers in wealthy countries believe their ,obs are heading to the poorer countries. -ome consider wor)ers in poor countries oppressed since they wor) for relatively low wages. Globalization is blamed for damage to the environment as poor countries rushing to develop ignore the impact on the planet. -ome cultures fear that the spread of globalization will destroy valued traditions as foreign cultural values are introduced. !ffects Globalization has had the effect of encouraging a common language for the world. That language is, at least for now, !nglish. !ven though it is only the fourth most spo)en native language on !arth, it has become the language of business. . vast ma,ority of the world(s "nternet traffic, mail and mass media is in !nglish. "t is a popular second language for +hinese school children preparing to do business in a globalized world. -ome .mericans are learning /andarin +hinese for the same reason, but in much smaller numbers.

0otential Globalization has led to the development of worldwide governing bodies. These include the World Trade 1rganization, the "nternational /onetary 2und and the World #an). They are tas)ed with regulating interactions between economies and preventing conflicts. -ome social scientists theorize that this could be the precursor to an eventual worldwide government. However, critics say if this were ever to happen, it would ta)e centuries. What is Globalization? Globalization is a word that we hear constantly nowadays. "t can be defined as the trend in the financial mar)ets and businesses to expand beyond national and territorial borders and boundaries. "t is a process through which the financial mar)ets, societies and cultures have become interdependent and tend to merge, blurring the boundaries between the local, national, and international. "t is a dynamic process primarily led by multi3national businesses and organizations. "t can also be viewed as the freedom of movement for goods, services, and people across borders. "t is a phenomenon caused by the latest developments in mass communication and the technologies that have been developed and continue to be developed to support this new and instant way of communicating between people and organizations. The increased ease of mobility has also greatly contributed to this unstoppable trend.There seems to be a disagreement on whether economic globalization is or not an irreversible current. What is certain is that this trend has substantial effects on the world(s economies. 0ros and +ons of !conomic Globalization The 0ros of globalization include4 5 Global competition )eeps prices low so inflation is less li)ely to occur 5 .n open economy can encourage innovation as people can exchange ideas freely and instantaneously 5 There are more varied and international goods available for consumption everywhere. 1n the negative side4 5 -mall businesses have difficulty surviving in an unregulated mar)et and usually get eaten up by larger competitors 5 .s economies become interdependent, a crush in a country(s economy will affect other countries in a negative way.

#asic .spects of Globalization To sum up we must understand that there are some basic aspects to globalization4 5 "nternet allows us to be global in the way we exchange information 5 We are more mobile than ever, travel has become less expensive and people move all over the place and get to see and experience different cultures 5 !nvironmental problems affect us all, issues such as air pollution, acid rain, and climate go beyond national borders 5 1ur economy is increasingly global as a result of mass communication and mass transportation. Globalization is the connection of different parts of the world. Globalization results in the expansion of international cultural, economic, and political activities. .s people, ideas, )nowledge, and goods move more easily around the globe, the experiences of people around the world become more similar. Globalization in History Globalization has a long history. .ncient Gree) culture, for instance, spread across much of southwestern .sia, northern .frica, and southern !urope. The globalization of Gree) culture came with the con6ueror .lexander the Great. "n fact, there are cities named for .lexander in "ra6 7"s)andariya8, !gypt 7.lexandria8, and Tur)ey 7.lexandria Troas8. The -il) 9oad, a trade route between +hina and the /editerranean -ea, promoted the exchange of ideas and )nowledge, along with trade goods and foods such as sil), spices, porcelain, and other treasures from the !ast. When !uropeans began establishing colonies overseas, globalization grew. /any early !uropean explorers were eager to bring the +hristian religion to the regions they visited. The globalization of +hristianity spread from !urope to :atin .merica through +hristian missionaries wor)ing with the local populations. Globalization was accelerated in the nineteenth century with the "ndustrial 9evolution, as mechanical mills and factories became more common. /any companies used raw materials from distant lands. They also sold their goods in other countries. #ritain;s colony in "ndia, for instance, supplied cotton to #ritish merchants and traders. /adras, a light cotton cloth, was made in the city of /adras 7now called +hennai8, a ma,or port in "ndia. !ventually, madras cloth was no longer manufactured in /adras at all<the "ndian labor forcesupplied the raw material, cotton. 2actories in the county of :ancashire, !ngland, created madras cloth. #ritish factories made fabric and other goods from the cotton. #ritish manufacturers could then sell their finished goods, such as clothing and blan)ets, to buyers all over the world<the =nited -tates,

#razil, .ustralia, even "ndia. Globalization sped up dramatically in the twentieth century with the proliferation of air travel, the expansion of free trade, and the dawn of the "nformation .ge. /iles of fiber3opticcable now connect the continents, allowing people around the world to communicate instantly through the borderless World Wide Web. +ommunication /odern communication has played a large role in cultural globalization. Today, news and information zips instantly around the world on the internet. 0eople can read information about foreign countries as easily as they read about their local news. Through globalization, people may become aware of incidents very 6uic)ly. "n seconds, people are able to respond to natural disasters that happen thousands of miles away. .bout >' percent of the people in the world now use cell phones. . farmer in ?igeria can easily tal) to his cousin who moved to ?ew @or) +ity, ?ew @or). The success of global news networ)s li)e +?? have also contributed to globalization. 0eople all over the world can see the same news *A hours a day. Travel "ncreased international travel has also helped globalization. !ach year, millions of people move from one country to another in search of wor). -ometimes, these migrantwor)ers travel a short distance, such as between the /exican state of -onora and the =.-. state of +alifornia. -ometimes, migrant wor)ers travel many thousands of miles. /igrant wor)ers from the 0hilippines, for instance, may travel to !urope, .ustralia, or ?orth .merica to find better3paying ,obs. 0eople do not travel ,ust for wor), of course. /illions of people ta)e vacations to foreign countries. /ost of these international tourists are from developed countries. /any are most comfortable with goods and services that resemble what they have at home. "n this way, globalization encourages countries around the world to provide typical Western services. The facilities of a Holiday "nn hotel, for instance, are very similar, whether the location is #angor, /aine, or #ang)o), Thailand. Travel and tourism have made people more familiar with other cultures. Travelers are exposed to new ideas about food, which may change what they buy at the store at home. They are exposed to ideas about goods and services, which may increase demand for a specific product that may not be available at home. They are exposed to new ideas, which may influence how they vote. "n this way, globalization influences trade, taste, and culture. 0opular +ulture 0opular culture has also become more globalized. 0eople in the =nited -tates en,oy listening to -outh .frican music and reading Bapanese comic boo)s. .merican soap

operas are popular in "srael. "ndia, for instance, has a thriving film industry, nic)named C#ollywood.D #ollywood movies are popular both in "ndia and with the huge population of "ndians living abroad. "n fact, some #ollywood movies do much better in the =nited -tates or the =nited Eingdom than they do in "ndia. +lothing styles have also become more uniform as a result of globalization. ?ational and regional costumes have become rarer as globalization has increased. "n most parts of the world, professionals such as ban)ers wear suits, and ,eans and T3shirts are common for young people. There has also been an increasing exchange of foods across the globe. 0eople in !ngland eat "ndian curry, while people in 0eru en,oy Bapanese sushi. /eanwhile, .merican fast food chains have become common throughout the world./cFonald(s has more than G$,''' restaurants in $$& countries. .nd people all across the world are eating more meat and sugary foods, li)e those sold in fast food restaurants. The worldwide expansion of /cFonald;s has become a symbol of globalization. -ome menu items, such as the #ig /ac, are the same all over the world. 1ther menu items are specific to that region. /cFonalds in Bapan features a green3tea flavored mil)sha)e. .t /cFonald;s in =ruguay, a C/cHuevoD is a burger topped with a fried egg. Globalization has brought /cFonald;s to billions of consumers worldwide. !conomy The international economy has also become more globalized in recent decades. "nternational trade is vital to the economies of most countries around the world. .mericansoftware companies, such as /icrosoft, rely on international trade to ma)e large profits. The economy of the country of -audi .rabia is almost entirely dependent on oil exports. To increase trade, many countries have created free trade agreements with other countries. =nder free trade agreements, countries agree to remove trade barriers. 2or example, they may stop charging tariffs, or taxes, on imports. "n $%%A, the =nited -tates, /exico, and +anada signed the ?orth .merican 2ree Trade .greement 7?.2T.8, which eventually ended all tariffs on trade goods between the three nations. This allowed globalization of goods and services, as well as people and ideas, between these three countries. /ost large corporations operate in many countries around the world. H-#+, the world;s largest ban), has offices in && different countries. 1riginally, H-#+ stood for Hong)ong -hanghai #an)ing +orporation, which was founded in $&>H to promote trade between +hina and the =nited Eingdom. Today, H-#+ has its head6uarters in :ondon, !ngland. !conomic globalization has allowed many corporations based in the West to move factories and ,obs to less economically developed countries, a process

calledoutsourcing. The corporation can pay lower wages, because the standard of living in less developed countries is much lower. :aws protecting the environment and wor)ers; safety are less widespread in developing countries, which also lowers costs for the corporation. 1ften, this results in lower costs for consumers, too. !conomic mar)ets are global. 0eople and organizations invest in companies all over the globe. #ecause of this,economic downturns in one country are repeated in other countries. The financial crisis that began in the =nited -tates in *''> 6uic)ly spread around the world. The way globalization allowed this situation to spread led to the nation of "celand nearly going ban)rupt, for example. 0olitics +ultural and economic globalization have caused countries to become more connected politically. +ountries fre6uently cooperate to enact trade agreements. They wor) together to open their borders to allow the movement of money and people needed to )eep economic globalization wor)ing. #ecause people, money, and computerized information move so easily around the globe, countries are increasingly wor)ing together to fight crime. The idea of maintaining international law has also grown. "n *''*, the "nternational +riminal +ourt was established. This court, which handles cases such as war crimes, has a global reach, although not all countries have accepted it. /any problems facing the world today cross national borders, so countries must wor) together to solve them. !fforts to confront problems such as global climate changemust involve many different countries. "n *''%, representatives from $I' countries gathered at a conference in +openhagen, Fenmar), to discuss climate change. 1ther international issues include terrorism, drug traffic)ing, andimmigration. The process of globalization is very controversial. /any people say globalization will help people communicate. .id agencies can respond more 6uic)ly to a natural disaster. .dvanced medicines are more easily and widely available to people who may not have been able to afford them. Bobs available through globalization have lifted many people out ofpoverty. Globalization has increased the number of students studying abroad. ?ot everyone says that globalization is good, however. -ome people worry that Western culture will destroy local cultures around the world. They fear that everyone will end up eating hamburgers and watching Hollywood movies. 1thers point out that people tend to adopt some aspects of other cultures without giving up their own. "ronically, modern technology is often used to preserve and spread traditional beliefs and customs. 1pponents to globalization blame free trade for unfair wor)ing conditions. They also say that outsourcing has causedwealthy countries to lose too many ,obs. -upporters of

globalization say that factory wor)ers in poor countries are ma)ing much better wages than they would at other ,obs available to them. They also argue that free trade has lowered prices in wealthier countries and improved the economy of poorer countries. ?egative !ffects of Globalization Globalization is a very controversial issue today. 1pinions vary considerably over its pros and cons. Here we ta)e a loo) at its negative effects. Globalization is the buzzword of today. !conomies of the world are being increasingly integrated as new technology and communication has brought people together. We often hear the phrase that the (world has become a global village( 3 which itself signifies how much has changed in the world in the past few decades. .merican businessmen are investing their time in studying the culture of the /iddle !ast, so that they can negotiate with their counterparts in a better way. @oung graduates in "ndia are being taught how the .mericans roll their 9(s, so as to ma)e a seamless conversation with their clients in many of the call3centersJ The phenomenon that is globalization, has brought new dimensions to this world, and people are mingling with each other li)e never before. The social, economic, and political changes that globalization has brought have been accompanied by some challenges. We will not approach its negative effects as a cynic, but as a student or an observer, so that we are free of any )ind of pre,udice and bias, and understand the topic in a better way. The ?egative !ffects of Globalization "n order to cut down costs, many firms in developed nations have outsourced their manufacturing and white3collar ,obs to Third3World countries li)e "ndia and +hina, where the cost of labor is low. The most prominent among these have been ,obs in the customer service field as many developing nations have a large !nglish3spea)ing population 3 ready to wor) at one3fifth of what someone in developed world may call (low3pay(. This has caused a lot of resentment among the people of developed countries, and companies have been accused of ta)ing their ,obs away. .nother problem is that many .mericans are not satisfied with the level of customer service that they are sub,ected to, and this has caused a lot of animosity among people and has added to the dissent that people already have against outsourcing. There are various schools of thought which argue that globalization has led to an increase in activities such as child labor and slavery. "n countries with little or no accountability, corporations employing children can wor) smoothly by bribing the officials, which may result in an increase in illegal activities. +ritics opine that globalization has resulted in a fiercely3competitive global mar)et, and unethical practices in business is a by3product of this. Globalization may have inadvertently helped terrorists and criminals. .t the heart of globalization is an idea that humans, materials, food etc. be allowed to travel freely across borders, but %K$$ was a ghastly reminder that people with evil intentions can use it as an opportunity and cause damage. "t is not only the developed nations that are complaining about its negative effects, people in developing nations 3 where most of the industries have been set up, have their own set

of reasons against globalization. They often complain that their cities have been reduced to garbage3dumps where all the industrial waste is accumulated and pollution levels are s)y3high. 2ast food chains li)e /cFonalds and E2+ are spreading fast in the developing world. 0eople are consuming more ,un) food which has an adverse impact on their health. .part from the health concerns, there is something else that globalization has been criticized for, and it is the accusation that it has opened floodgates for restaurants and eateries which are insensitive to the religious beliefs of the host nation. 2or example, a lawsuit had to be filed against /cFonalds in "ndia, after it was accused of serving beef in their burgers. While the rich are getting richer, the poor are struggling for a s6uare meal. "f the current 1ccupy Wall -treet protests are a reminder of how angry people are with the current set3 up, then those who govern us should ta)e notice, and wor) towards alleviating poverty. "deally, globalization should have resulted in creation of wealth and prosperity, but corporate greed and corrupt government has ensured that money is not distributed e6ually. When the first3)nown case of ."F- came up in .merica, only few would have traced its origin to -ub3-aharan .frica. Globalization bought people from various countries together, and this is perhaps the reason that a virus from a ,ungle was transported to almost every country in the world. !nvironmental degradation is an issue which has been debated ferociously in various international meetings, and it has to be accepted that globalization is one of the most important factors that has aggravated the situation. The amount of raw materials needed to run industries and factories is ta)ing a toll on the natural reserves of planet earth, and pollution has severely impacted the 6uality of air that we need so very much for our survival. .s we mentioned in the beginning of the article that li)e everything else, globalization has its own share of )udos and bric)bats. We have reached a stage since our evolution that discarding the concept of globalization may not be possible at all, therefore, the strategy should be to find solutions to the threats it poses to us so that we can wor) towards a better, fulfilling future. 9ead more at #uzzle4 http4KKwww.buzzle.comKarticlesKnegative3effects3of3 globalization.html

Globalization refers to the process of integration across societies and economies. The phenomenon encompasses the flow of products, services, labor, finance, information, and ideas moving across national borders. The fre6uency and intensity of the flows relate to the upward or downward direction of globalization as a trend. There is a popular notion that there has been an increase of globalization since the early $%&'s. However, a comparison of the period between $&I' and $%$A to the post3World War "" era indicates a greater degree of globalization in the earlier part of the century than

the latter half. This is true in regards to international trade growth and capital flows, as well as migration of people to .merica. "f a perspective starts after $%AH<at the start of the +old War<globalization is a growing trend with a predominance of global economic integration that leads to greater interdependence among nations. #etween $%%' and *''$, total output of export and import of goods as a proportion of GF0 rose from G*.G percent to GI.% percent in developed countries and GG.& percent to A&.% percent for low3 to middle3income countries. 2rom $%%' to *''G, international trade export rose by LG.A to LI.G trillion 7see 2igure $8. Hence, the general direction of globalization is growth that is unevenly distributed between wealthier and poorer countries. 9.T"1?.:! . primary economic rationale for globalization is reducing barriers to trade for the enrichment of all societies. The greater good would be served by leveraging

2igure $ "nternational !xport Trade, $%%'3*''G 7in billions of =- dollars8 comparative advantages for production and trade that are impeded by regulatory barriers between sovereignty entities. "n other words, the betterment of societies through free trade for everyone is possible as long as each one has the freedom to produce with a comparative advantage and engage in exchanges with others.This economic rationale for global integration depends on supporting factors to facilitate the process. The factors include advances in transportation, communication, and technology to provide the necessary conduits for global economic integration. While these factors are necessary,

they are not sufficient. +ollaboration with political will through international relations is re6uired to leverage the potential of the supporting factors. H"-T19"+.: #.+EG91=?F Globalization from $&I' to $%$A came to an end with the World War " as various countries pursued isolationism and protectionism agendas through various treaties<the Treaty of #rest3:itovs) 7$%$&8, the Treaty of Mersailles 7$%$&8, the Treaty of -t. Germain 7$%$%8, and the Treaty of Trianon 7$%*'8. =.-. trade policies<the Tariff acts of $%*$, $%**, $%*A, $%*>, and the -mooth Hawley Tariffs of $%G'<raised barriers to trade. These events contributed to the implosion of globalization for more than forty years. Toward the end of World War "", forty3four countries met in an effort to re3establish international trade. The milestone is referred to as #retton Woods, named after the ?ew Hampshire country inn where the meeting was held. 9esults of #retton Woods included the creation of the "nternational /onetary 2und 7"/28, the World #an), and subse6uently, the General .greements on Tariffs and Trade 7G.TT8. "n $%A& the "nternational Trade 1rganization 7"T18 was established as an agency of the =nited ?ations, with fifty member countries and the Havana +harter to facilitate international trade but it failed. .s a result, G.TT rose to fill the void as a channel for multilateral trade negotiations and recognition of /ost 2avored ?ation status that applied the same trading conditions between members that applied to other trading partners with most favored partner standing. G.TT involved a number of different multilateral rounds of trade negotiations to reduce trade barriers and facilitate international trade. "n the first round, the twenty3three founding members of G.TT agreed to AH,''' tariff concessions affecting *' percent of international trade worth L$' billion. /any of G.TT(s trade rules were drawn from the "T1 charter. -ubse6uent trade rounds involved more members and additional issues, but the basic foundation of G.TT remained the same. "n the second round, the Eennedy 9ound of the mid3$%>'s, the focus continued with tariff reductions. "n the third round, the To)yo 9ound 7$%IGN$%I%8, $'* countries participated to reform the trading system, resulting in tariff on manufactured products reduced to A.I percent from a high of A' percent at the inception of G.TT. "mportant issues revolved around

anti3dumping measures, and subsidies and countervailing measures. The reduction of trade barriers enabled about an average of & percent growth of world trade per year in the $%H's and $%>'s. "n the fourth round, the =ruguay 9ound 7$%&> to $%%G8, $*H countries participated to develop a more comprehensive system. 1n .pril $H, $%%H, in /arra)esh, /orocco, a deal was signed to create the World Trade 1rganization 7WT18, which replaced G.TT with a permanent institution that re6uired a full and permanent commitment. The WT1 encompasses trade in goods, services, and intellectual property related to trade with a more efficient dispute settlement system. +1/0:!O"T"!- .?F +1?T91M!9-"!The increase of globalization surfaced many complex and controversial issues as economies and societies became more interdependent with greater fre6uency of interactions between one another. . number of important trends ma)e up globalization including4 7$8 location of integration activitiesP 7*8 impact upon poorer societiesP 7G8 flow of capitalP 7A8 migration of labor and wor)P 7H8 diffusion of technologyP 7>8 sustainability of the natural environmentP 7I8 reconfiguration of cultural dynamicsP and 7&8 development of organizational strategies for global competition. /any authors specialize in exploring each issue with much greater depth. The purpose of reviewing the different trends in this essay is to provide some highlight concerning the interrelated complexities underlying globalization. :1+.T"1? 12 "?T!G9.T"1? .+T"M"T"!-. The extent of globalization unfolds in an uneven fashion to the degree that the 6uestion is raised whether international trade is more focused on regional rather than global integration. Trading blocs, such as the ?orth .merican 2ree Trade .greement 7?.2T.8, the !uropean =nion 7!=8, the .sia30acific !conomic +o3operation 7.0!+8, /ercosur 7-outh .merican trading bloc8, the .ssociation of -outh !ast .sian ?ations 7.-!.?8, and the !ast .frica +ommunity 7!.+8, support regional cooperation between geographical neighbors. Georgios +hortareas( and Theodore 0elagidis( research findings on openness and convergence in international trade indicate that intra3regional trade increased more than

global trade in most situations. They stated that Q despite the positive international climate resulting from important reductions in transportation costs, the development of new technologies and trade liberalization mar)ets continue to be determined, to a large extent, regionally and nationallyQ Within ?.2T., intra3regional exports rose from GA percent in the $%&'s to more than H> percent in *'''P exports between .sian country members amounted to A& percent in *'''P and exports within the != were sustained at about >* percent. .n example of limitations to fair mar)et access for developing countries is that developed countries subsidize agricultural producers with about LGG' billion per year, which creates a significant disadvantage for poorer economies without such subsidies. The impact is exacerbated because I' percent of the world(s poor population lives in rural communities and depends heavily on agriculture. Hence, one of the concerns with uneven distribution of globalization is its impact on poorer economies by perpetuating systems of ine6uality. "/0.+T 1? 0119!9 -1+"!T"!-. . challenge to globalization is that ine6uality arises from imbalances in trade liberalization where the rich gain disproportionately more than the poor. .,it E. Ghose examined the impact of international trade on income ine6uality and found that inter3 country ine6uality increased from $%&$ to $%%I, in a sample of ninety3six national economies, but international ine6uality measured by per capita GF0 declined. The ratio of average income for the wealthiest *' percent compared to the poorest *' percent rose from G' to IA from the early $%>'s to the late $%%'s. "n *''A, one billion people owned &' percent of the world(s GF0, while another billion survives on a L$. However, during the same period, when average income is weighted by population, income ine6uality dropped by $' percent in the same period. .lso, global income distribution became more e6ual with other measures such as purchasing power parity or the number of people living in poverty. The World Fevelopment "ndicators for *''A showed a drop in absolute number of people living on L$ per day from $.H billion in $%&$ to $.$ billion in *''$ with most of the achievements ta)ing place in the !ast .sia region. Thus, the impact of globalization on ine6uality is a complex issue depending on the particular measures. /ore specific examination needs to account for other contributing factors, such as how regionalism

increases concentration of trade between countries that are wealthier and leaving poorer countries at the margin. 2:1W 12 +.0"T.:. The flow of capital relates to both regionalism and ine6uality issues. Two forms of capital flow are foreign direct investments 72F"8 made by business firms and investment portfolios, diversified with foreign assets or borrowers see)ing foreign funding. Fata from the World #an) indicated that 2F" grew from an average of L$'' billion per year in the $%&'s to LGI' billion in $%%I. ?et private capital flow amounts to about L*'' billion in *''A. .lso, some economies have significant remittance flows from labor migration, which were approximately L$'' billion in *''G and L$*> billion in *''A for ninety developing countries. -ome +aribbean countries receive more than $' percent of their GF0 from remittances. While developing countries are the primary recipients of remittances, transaction costs can amount to $' to $H percent per transaction. 9educing such obstacles would benefit poorer countries with heavy dependencies on remittances. The flow of money across national borders relates to the migration of both labor and wor). /"G9.T"1? 12 :.#19 .?F W19E. .n important dimension of globalization is the migration of people. While the proportion of migration was greater during the earlier mercantilism period, sovereign border controls to a large extent create a filtration process for migration. .bout $IH million people lived in a different country than their birth country in *'''. They can be separated into three categories4 $H& million international migrants, $> million refugees, and %'',''' asylum see)ers. .n important global trend in the future is the movement of labor from developing to developed countries because of the latter(s need for labor with an aging population. 2amily3sponsored migration ma)es up AH to IH percent of international migrants who mainly originate from developing countries to countries in !urope and ?orth .merica. !ven before %K$$, legal migration of labor needed to overcome substantial bureaucracy in the border control process. The number applying for entry into developed countries often far exceeds the number permitted. Fue to extensive legal processes, some migrants enter

illegally, while others become illegal with expiration of legal status. .nti3terrorism measures imposed shortly after the %K$$ attac)s resulted in a minor shift in the flow of migrants away from the =nited -tates toward other developed countries. With the aging of baby boomers in many developed countries, future globalization of migrant labor flows is receiving more attention, especially in education, health care, retirement funding, and housing, as well as meeting wor)force needs to sustain business competitiveness. .lthough migrant labor often entails the movement of people in search of wor), a related globalization trend is the migration of wor) to different geographical location. While multinational corporations 7/?+s8 often see) low3cost labor, innovation advances in computer technology, satellite communication infrastructures, internet developments, and efficient transportation networ) enable companies to distribute wor) in ways not possible before. +ompression of time and space with internet technology allows for the distribution of wor) to ta)e place around the world with global virtual teams. The phenomena of outsourcing and offshoring expand on the earlier sourcing of low3cost manufacturing. Furing the $%>'s and $%I's, /?+s migrated to low3wage labor to manufacture products that entailed significant labor costs. !xpansion of /?+s in the $%%'s encompassed highly s)illed wor)ers, service wor), and global virtual teams. 2irms started to outsource information technology 7"T8 functions as early as the $%I's, but a ma,or wave of outsourcing started in $%&% with the shortage of s)illed "T wor)ers in developed countries. .t the same time, the trend of shifting wor) around the globe to leverage the different time zones began with the financial industry(s ability to shift trading between the various stoc) exchanges in ?ew @or), To)yo, and Hong Eong, and :ondon. Technological innovations in computers and the internet enabled other industries, such as software engineering, data transcription, and customer service centers to also shift wor) around the globe. Higher education and high3s)ill health care ,obs are also embar)ing on global outsourcing. "n *''$, outsourcing expenditures amounted to LG.I trillion and the estimation for *''G is LH.$ trillion. The impact of global outsourcing is not ,ust a relocation of ,obs, but also a dampening of employee compensation levels in more developed economies. 2or

example, in *''', salaries for senior software engineers were as high as L$G'E, but dropped to about L$''E at the end of *''*P and entry3level computer help3des) staff salaries dropped from about LHHE to LGHE. 2or "T vendor firms in countries li)e "ndia, "T engineering ,obs command a premium "ndian salary that is at a fraction of their =.-. counterparts. "n sum, migration of labor and wor) create complex globalization dynamics. F"22=-"1? 12 T!+H?1:1G@. "nnovations in telecommunication, information technology, and computing advances ma)e up )ey drivers to support the increase of globalization. "n $%%H, the World Wide Web had *' million users, exploded to A'' million by late *''' and had an estimated one billion users in *''H. However, the rapid growth and adoption of information technology is not evenly diffused around the world. The gap between high versus low adoption rates is often referred to as the digital divide. "n *''*, the number of users per $''' people was highest in "celand at >AI.%P others in the top five ran)s of internet users included -weden at HIG.$, the =nited -tates at HH$.A, Fenmar) and +anada both at H$*.&, and 2inland at H'&.%. "n comparison, countries at the low end of internet use were Ta,i)istan and /yanmar at '.H per $''', !thiopia at '.I, the +ongo at '.%, #urundi at $.*, and #angladesh at $.H. The digital divide reflects other disparities of globalization. Globalization of computer technology also entails a growing trend of computer crimes on an international basis, which re6uires cross3border collaboration to address it. .dditional globalization trends related to computer technology include developments in artificial intelligence, high3speed connections such as wireless applications, and integration with biotechnology. -=-T."?.#":"T@ 12 TH! ?.T=9.: !?M"91?/!?T. The impacts of globalization on environment sustainability are hotly contested, with ma,or environmental protests held at international economic meetings or prominent multilateral trade forums. The =nited ?ation(s $%&I publication of the#rundtland 9eport 7named for Gro #rundtland, 0rime /inister of ?orway8, galvanized international attention on sustainable development. . ma,or assumption was that the degradation of the environment in developing countries was due primarily to poverty.

-ome advocates of globalization consider free trade to be a solution to alleviate poverty and subse6uently, reduce pollution. However, the arguments depend upon corporate social responsibility, managerial )nowledge of environmental sustainability, and a level of ignorance in the developing community. +ritics find that often large /?+s have greater financial resources than some developing countries, which can be used to compromise and derail regulatory regimes from protecting the environment. 2or example, while a /?+ may not produce or sell certain environmentally damaging products in a country with tight regulatory controls, they may find their way to mar)ets with fewer environmental regulatory constraints< pollution havens. This line of logic leads to the notion of globalization becoming a race to the bottom as countries compete with lowering of environmental standards to attract foreign capital for economic development. 1ne of the landmar)s on environmental globalization is the Eyoto .ccord, an international treaty to reduce greenhouse gas emissions based on exchanging limited pollution credits between countries. .fter lengthy multilateral complex negotiations, the Eyoto .ccord was concluded in Fecember, $%%I for ratification by national governments. 1n 2ebruary $>, *''H, the date for the Eyoto 0rotocol to ta)e effect, $A$ nations ratified the agreement. !ven though the =nited -tates is the world(s largest polluter in volume and per capita output of greenhouse gases, the #ush administration refused to ratify the Eyoto .ccord. 9!+1?2"G=9.T"1? 12 +=:T=9.: F@?./"+-. +ulture is another area of complex controversies with globalization. +ompeting perspectives about how globalization affects cultures revolve around the debates of cultural homogenization versus cultural diversification. The optimistic view of cultural globalization is that cultural diversity focuses on freer cultural exchanges with broader choices and enrichment of learning from different traditions. 0eople have greater choices of globally produced goods, in addition to local offerings, without being bound by their geographical location. .lternatively, critics of cultural globalization present evidence demonstrating the depletion of cultural diversity through processes referred to as Fisneyfication or /cFonaldization. 2urthermore, not only is cultural diversity diminished but cultural 6uality is as well with

mass produced goods being directed toward a common denominator. The criticisms are related to a sense of .mericanization of the world, rather than globalization. The process involves a sense of far3reaching, anonymous cultural imperialism. Febates from each perspective are intense with substantial evidence that also reveals complex ties to social and political dynamics within and between national borders. +ultural globalization continues into the foreseeable future with many more controversial dynamics related to three important issues4 $8 the impact of extractive industries on the socio3economic, cultural exclusion and dislocation of indigenous peoples and their traditional )nowledgeP *8 international trading of cultural goods and )nowledgeP and G8 inflow of immigration impacts on national culture, which creates a tension between a sense of threat to the national culture and migrant demands for respect to their traditions in a multicultural society. F!M!:10/!?T 12 19G.?"R.T"1?.: -T9.T!G"!- 219 G:1#.: +1/0!T"T"1?. The multiple dynamics of globalization<regionalism, ine6uality, financial flows, migration of labor and wor), technological innovations, environmental sustainability, and cultural dynamics<form a turbulent and complex environment for managing business operations. While seven trends were highlighted to provide a brief s)etch of interrelated complexities and controversies globalization, it also surfaced other significant issues. Global concerns revolve around terrorism, rapid transmission of pandemic diseases and viruses, the rise of +hina(s and "ndia(s economies, an aging population in wealthier northern countries versus younger growing populations in the southern hemisphere, and advances in biotechnology are intricately embedded in globalization processes. +1/0!T"?G "? TH! G:1#.: !+1?1/@ Globalization entails both opportunities and threats for creating and sustaining competitive strategies. !merging economies offer resources in terms of labor, as well as expanding mar)et opportunities. However, geopolitical relationships and bac)lashes from perceptions of cultural imperialism, such as the tensions between the =nited -tates and the !uropean =nion during the "ra6 war create challenges for business operations. Global managers have a wide range of options to deal with globalization. 1rganizational

strategies for international operations involve two related demands<the need for local orientation and the need for integration 7as shown in 2igure *8. 2irms with low need for local orientation, but high need for integration re6uire a global strategy that centralizes core operations with minor modifications for local adaptation. However, firms with a need for high local orientation, but low need for integration, re6uire a multinational strategy that decentralizes significant operations to respond to local mar)et conditions. 2irms integrating a high need for both local orientation and organizational integration should strive for a transnational strategy. "n addition to selecting a strategy for global competition, managers also need to ma)e decisions regarding the internationalization process. Two processes are important. 2irst, the development of innovations in a home mar)et and as products moves along the product life cycle stages, firms can ta)e products entering into the plateau of a mature stage to new international mar)ets. 1ften the flow moves from developed to developing countries. -econd, stages of internationalization with foreign entry modes that involve increasing resource commitment and ris)s start with exporting to licensing or ,oint ventures to wholly owned subsidiaries. The stage approach to internationalization ta)es time, which is a challenge within a global environment where information moves around the world in nanoseconds. .lternatively, Eenichi 1hmae argued that the speed and complexities of globalization re6uire firms to rethin) their internationalization process because incremental stage models are too slow. Given the rate and 6uantity of )nowledge flows in global competition, firms are li)ely to face competition in their home mar)ets, with comparable innovations to their own before they are able to establish a foothold in the international mar)et. The incremental stage models are too slow for competing in an increasingly integrated global economy. 1hmae suggested that firms form global strategic alliances with partners established in three ma,or mar)ets<?orth .merica, !urope, and .sia, particularly Bapan. Fevelopment of global competitive intelligence and innovation among the partners provide for rapid mar)et development and the establishment of strategic positions in multiple locations. #asically, globalization into the twenty3first century creates a fundamentally different

competitive environment that shifted from incremental internationalization processes to almost simultaneous deployment of innovations. This internationalization process also shifts the wor) of global managers from managing a field of expatriates to collaborating with strategic partners across national borders and managing global off3shore outsourcing vendors in multiple geographical locations. 2igure * -)ill 0rofile of the !ffective Global /anager Globalization is a culmination of complex and controversial trends that include degree of geographical integration, ine6ualities, financial flows, labor and wor), technological innovations, environmental sustainability, cultural dynamics, and organizational strategies for global competition. Given a historical perspective, globalization has fluctuated over time and many indicators support a trend of increasing globalization since the $%&'s. While the =nited -tates is the dominant superpower in the global economy, the rise of both +hina and "ndia is an important consideration for international business. Global managers have options for strategies and structures, as well as different internationalization processes. "n sum, globalization creates a competitive arena where /?+s evolve into global networ)s with collaboration and controversial differences as necessities to sustain a competitive strategy. Globalization refers to the process of integration across societies and economies. The phenomenon encompasses the flow of products, services, labor, finance, information, and ideas moving across national borders. The fre6uency and intensity of the flows relate to the upward or downward direction of globalization as a trend. There is a popular notion that there has been an increase of globalization since the early

$%&'s. However, a comparison of the period between $&I' and $%$A to the post3World War "" era indicates a greater degree of globalization in the earlier part of the century than the latter half. This is true in regards to international trade growth and capital flows, as well as migration of people to .merica. "f a perspective starts after $%AH<at the start of the +old War<globalization is a growing trend with a predominance of global economic integration that leads to greater interdependence among nations. #etween $%%' and *''$, total output of export and import of goods as a proportion of GF0 rose from G*.G percent to GI.% percent in developed countries and GG.& percent to A&.% percent for low3 to middle3income countries. 2rom $%%' to *''G, international trade export rose by LG.A to LI.G trillion 7see 2igure $8. Hence, the general direction of globalization is growth that is unevenly distributed between wealthier and poorer countries. 9.T"1?.:! . primary economic rationale for globalization is reducing barriers to trade for the enrichment of all societies. The greater good would be served by leveraging

2igure $ "nternational !xport Trade, $%%'3*''G 7in billions of =- dollars8 comparative advantages for production and trade that are impeded by regulatory barriers between sovereignty entities. "n other words, the betterment of societies through free trade for everyone is possible as long as each one has the freedom to produce with a comparative advantage and engage in exchanges with others.This economic rationale for global integration depends on supporting factors to facilitate the process. The factors

include advances in transportation, communication, and technology to provide the necessary conduits for global economic integration. While these factors are necessary, they are not sufficient. +ollaboration with political will through international relations is re6uired to leverage the potential of the supporting factors. H"-T19"+.: #.+EG91=?F Globalization from $&I' to $%$A came to an end with the World War " as various countries pursued isolationism and protectionism agendas through various treaties<the Treaty of #rest3:itovs) 7$%$&8, the Treaty of Mersailles 7$%$&8, the Treaty of -t. Germain 7$%$%8, and the Treaty of Trianon 7$%*'8. =.-. trade policies<the Tariff acts of $%*$, $%**, $%*A, $%*>, and the -mooth Hawley Tariffs of $%G'<raised barriers to trade. These events contributed to the implosion of globalization for more than forty years. Toward the end of World War "", forty3four countries met in an effort to re3establish international trade. The milestone is referred to as #retton Woods, named after the ?ew Hampshire country inn where the meeting was held. 9esults of #retton Woods included the creation of the "nternational /onetary 2und 7"/28, the World #an), and subse6uently, the General .greements on Tariffs and Trade 7G.TT8. "n $%A& the "nternational Trade 1rganization 7"T18 was established as an agency of the =nited ?ations, with fifty member countries and the Havana +harter to facilitate international trade but it failed. .s a result, G.TT rose to fill the void as a channel for multilateral trade negotiations and recognition of /ost 2avored ?ation status that applied the same trading conditions between members that applied to other trading partners with most favored partner standing. G.TT involved a number of different multilateral rounds of trade negotiations to reduce trade barriers and facilitate international trade. "n the first round, the twenty3three founding members of G.TT agreed to AH,''' tariff concessions affecting *' percent of international trade worth L$' billion. /any of G.TT(s trade rules were drawn from the "T1 charter. -ubse6uent trade rounds involved more members and additional issues, but the basic foundation of G.TT remained the same. "n the second round, the Eennedy 9ound of the mid3$%>'s, the focus continued with tariff reductions. "n the third round, the To)yo 9ound 7$%IGN$%I%8, $'* countries participated to reform

the trading system, resulting in tariff on manufactured products reduced to A.I percent from a high of A' percent at the inception of G.TT. "mportant issues revolved around anti3dumping measures, and subsidies and countervailing measures. The reduction of trade barriers enabled about an average of & percent growth of world trade per year in the $%H's and $%>'s. "n the fourth round, the =ruguay 9ound 7$%&> to $%%G8, $*H countries participated to develop a more comprehensive system. 1n .pril $H, $%%H, in /arra)esh, /orocco, a deal was signed to create the World Trade 1rganization 7WT18, which replaced G.TT with a permanent institution that re6uired a full and permanent commitment. The WT1 encompasses trade in goods, services, and intellectual property related to trade with a more efficient dispute settlement system. +1/0:!O"T"!- .?F +1?T91M!9-"!The increase of globalization surfaced many complex and controversial issues as economies and societies became more interdependent with greater fre6uency of interactions between one another. . number of important trends ma)e up globalization including4 7$8 location of integration activitiesP 7*8 impact upon poorer societiesP 7G8 flow of capitalP 7A8 migration of labor and wor)P 7H8 diffusion of technologyP 7>8 sustainability of the natural environmentP 7I8 reconfiguration of cultural dynamicsP and 7&8 development of organizational strategies for global competition. /any authors specialize in exploring each issue with much greater depth. The purpose of reviewing the different trends in this essay is to provide some highlight concerning the interrelated complexities underlying globalization. :1+.T"1? 12 "?T!G9.T"1? .+T"M"T"!-. The extent of globalization unfolds in an uneven fashion to the degree that the 6uestion is raised whether international trade is more focused on regional rather than global integration. Trading blocs, such as the ?orth .merican 2ree Trade .greement 7?.2T.8, the !uropean =nion 7!=8, the .sia30acific !conomic +o3operation 7.0!+8, /ercosur 7-outh .merican trading bloc8, the .ssociation of -outh !ast .sian ?ations 7.-!.?8, and the !ast .frica +ommunity 7!.+8, support regional cooperation between geographical neighbors.

Georgios +hortareas( and Theodore 0elagidis( research findings on openness and convergence in international trade indicate that intra3regional trade increased more than global trade in most situations. They stated that Q despite the positive international climate resulting from important reductions in transportation costs, the development of new technologies and trade liberalization mar)ets continue to be determined, to a large extent, regionally and nationallyQ Within ?.2T., intra3regional exports rose from GA percent in the $%&'s to more than H> percent in *'''P exports between .sian country members amounted to A& percent in *'''P and exports within the != were sustained at about >* percent. .n example of limitations to fair mar)et access for developing countries is that developed countries subsidize agricultural producers with about LGG' billion per year, which creates a significant disadvantage for poorer economies without such subsidies. The impact is exacerbated because I' percent of the world(s poor population lives in rural communities and depends heavily on agriculture. Hence, one of the concerns with uneven distribution of globalization is its impact on poorer economies by perpetuating systems of ine6uality. "/0.+T 1? 0119!9 -1+"!T"!-. . challenge to globalization is that ine6uality arises from imbalances in trade liberalization where the rich gain disproportionately more than the poor. .,it E. Ghose examined the impact of international trade on income ine6uality and found that inter3 country ine6uality increased from $%&$ to $%%I, in a sample of ninety3six national economies, but international ine6uality measured by per capita GF0 declined. The ratio of average income for the wealthiest *' percent compared to the poorest *' percent rose from G' to IA from the early $%>'s to the late $%%'s. "n *''A, one billion people owned &' percent of the world(s GF0, while another billion survives on a L$. However, during the same period, when average income is weighted by population, income ine6uality dropped by $' percent in the same period. .lso, global income distribution became more e6ual with other measures such as purchasing power parity or the number of people living in poverty. The World Fevelopment "ndicators for *''A showed a drop in absolute number of people living on L$ per day from $.H billion in $%&$ to $.$ billion in *''$ with most of the achievements ta)ing place in the !ast .sia region. Thus, the impact of globalization on

ine6uality is a complex issue depending on the particular measures. /ore specific examination needs to account for other contributing factors, such as how regionalism increases concentration of trade between countries that are wealthier and leaving poorer countries at the margin. 2:1W 12 +.0"T.:. The flow of capital relates to both regionalism and ine6uality issues. Two forms of capital flow are foreign direct investments 72F"8 made by business firms and investment portfolios, diversified with foreign assets or borrowers see)ing foreign funding. Fata from the World #an) indicated that 2F" grew from an average of L$'' billion per year in the $%&'s to LGI' billion in $%%I. ?et private capital flow amounts to about L*'' billion in *''A. .lso, some economies have significant remittance flows from labor migration, which were approximately L$'' billion in *''G and L$*> billion in *''A for ninety developing countries. -ome +aribbean countries receive more than $' percent of their GF0 from remittances. While developing countries are the primary recipients of remittances, transaction costs can amount to $' to $H percent per transaction. 9educing such obstacles would benefit poorer countries with heavy dependencies on remittances. The flow of money across national borders relates to the migration of both labor and wor). /"G9.T"1? 12 :.#19 .?F W19E. .n important dimension of globalization is the migration of people. While the proportion of migration was greater during the earlier mercantilism period, sovereign border controls to a large extent create a filtration process for migration. .bout $IH million people lived in a different country than their birth country in *'''. They can be separated into three categories4 $H& million international migrants, $> million refugees, and %'',''' asylum see)ers. .n important global trend in the future is the movement of labor from developing to developed countries because of the latter(s need for labor with an aging population. 2amily3sponsored migration ma)es up AH to IH percent of international migrants who mainly originate from developing countries to countries in !urope and ?orth .merica. !ven before %K$$, legal migration of labor needed to overcome substantial bureaucracy in

the border control process. The number applying for entry into developed countries often far exceeds the number permitted. Fue to extensive legal processes, some migrants enter illegally, while others become illegal with expiration of legal status. .nti3terrorism measures imposed shortly after the %K$$ attac)s resulted in a minor shift in the flow of migrants away from the =nited -tates toward other developed countries. With the aging of baby boomers in many developed countries, future globalization of migrant labor flows is receiving more attention, especially in education, health care, retirement funding, and housing, as well as meeting wor)force needs to sustain business competitiveness. .lthough migrant labor often entails the movement of people in search of wor), a related globalization trend is the migration of wor) to different geographical location. While multinational corporations 7/?+s8 often see) low3cost labor, innovation advances in computer technology, satellite communication infrastructures, internet developments, and efficient transportation networ) enable companies to distribute wor) in ways not possible before. +ompression of time and space with internet technology allows for the distribution of wor) to ta)e place around the world with global virtual teams. The phenomena of outsourcing and offshoring expand on the earlier sourcing of low3cost manufacturing. Furing the $%>'s and $%I's, /?+s migrated to low3wage labor to manufacture products that entailed significant labor costs. !xpansion of /?+s in the $%%'s encompassed highly s)illed wor)ers, service wor), and global virtual teams. 2irms started to outsource information technology 7"T8 functions as early as the $%I's, but a ma,or wave of outsourcing started in $%&% with the shortage of s)illed "T wor)ers in developed countries. .t the same time, the trend of shifting wor) around the globe to leverage the different time zones began with the financial industry(s ability to shift trading between the various stoc) exchanges in ?ew @or), To)yo, and Hong Eong, and :ondon. Technological innovations in computers and the internet enabled other industries, such as software engineering, data transcription, and customer service centers to also shift wor) around the globe. Higher education and high3s)ill health care ,obs are also embar)ing on global outsourcing. "n *''$, outsourcing expenditures amounted to LG.I trillion and the estimation for *''G is

LH.$ trillion. The impact of global outsourcing is not ,ust a relocation of ,obs, but also a dampening of employee compensation levels in more developed economies. 2or example, in *''', salaries for senior software engineers were as high as L$G'E, but dropped to about L$''E at the end of *''*P and entry3level computer help3des) staff salaries dropped from about LHHE to LGHE. 2or "T vendor firms in countries li)e "ndia, "T engineering ,obs command a premium "ndian salary that is at a fraction of their =.-. counterparts. "n sum, migration of labor and wor) create complex globalization dynamics. F"22=-"1? 12 T!+H?1:1G@. "nnovations in telecommunication, information technology, and computing advances ma)e up )ey drivers to support the increase of globalization. "n $%%H, the World Wide Web had *' million users, exploded to A'' million by late *''' and had an estimated one billion users in *''H. However, the rapid growth and adoption of information technology is not evenly diffused around the world. The gap between high versus low adoption rates is often referred to as the digital divide. "n *''*, the number of users per $''' people was highest in "celand at >AI.%P others in the top five ran)s of internet users included -weden at HIG.$, the =nited -tates at HH$.A, Fenmar) and +anada both at H$*.&, and 2inland at H'&.%. "n comparison, countries at the low end of internet use were Ta,i)istan and /yanmar at '.H per $''', !thiopia at '.I, the +ongo at '.%, #urundi at $.*, and #angladesh at $.H. The digital divide reflects other disparities of globalization. Globalization of computer technology also entails a growing trend of computer crimes on an international basis, which re6uires cross3border collaboration to address it. .dditional globalization trends related to computer technology include developments in artificial intelligence, high3speed connections such as wireless applications, and integration with biotechnology. -=-T."?.#":"T@ 12 TH! ?.T=9.: !?M"91?/!?T. The impacts of globalization on environment sustainability are hotly contested, with ma,or environmental protests held at international economic meetings or prominent multilateral trade forums. The =nited ?ation(s $%&I publication of the#rundtland 9eport 7named for Gro #rundtland, 0rime /inister of ?orway8, galvanized international

attention on sustainable development. . ma,or assumption was that the degradation of the environment in developing countries was due primarily to poverty. -ome advocates of globalization consider free trade to be a solution to alleviate poverty and subse6uently, reduce pollution. However, the arguments depend upon corporate social responsibility, managerial )nowledge of environmental sustainability, and a level of ignorance in the developing community. +ritics find that often large /?+s have greater financial resources than some developing countries, which can be used to compromise and derail regulatory regimes from protecting the environment. 2or example, while a /?+ may not produce or sell certain environmentally damaging products in a country with tight regulatory controls, they may find their way to mar)ets with fewer environmental regulatory constraints< pollution havens. This line of logic leads to the notion of globalization becoming a race to the bottom as countries compete with lowering of environmental standards to attract foreign capital for economic development. 1ne of the landmar)s on environmental globalization is the Eyoto .ccord, an international treaty to reduce greenhouse gas emissions based on exchanging limited pollution credits between countries. .fter lengthy multilateral complex negotiations, the Eyoto .ccord was concluded in Fecember, $%%I for ratification by national governments. 1n 2ebruary $>, *''H, the date for the Eyoto 0rotocol to ta)e effect, $A$ nations ratified the agreement. !ven though the =nited -tates is the world(s largest polluter in volume and per capita output of greenhouse gases, the #ush administration refused to ratify the Eyoto .ccord. 9!+1?2"G=9.T"1? 12 +=:T=9.: F@?./"+-. +ulture is another area of complex controversies with globalization. +ompeting perspectives about how globalization affects cultures revolve around the debates of cultural homogenization versus cultural diversification. The optimistic view of cultural globalization is that cultural diversity focuses on freer cultural exchanges with broader choices and enrichment of learning from different traditions. 0eople have greater choices of globally produced goods, in addition to local offerings, without being bound by their geographical location. .lternatively, critics of cultural globalization present evidence demonstrating the depletion of cultural diversity through processes referred to as

Fisneyfication or /cFonaldization. 2urthermore, not only is cultural diversity diminished but cultural 6uality is as well with mass produced goods being directed toward a common denominator. The criticisms are related to a sense of .mericanization of the world, rather than globalization. The process involves a sense of far3reaching, anonymous cultural imperialism. Febates from each perspective are intense with substantial evidence that also reveals complex ties to social and political dynamics within and between national borders. +ultural globalization continues into the foreseeable future with many more controversial dynamics related to three important issues4 $8 the impact of extractive industries on the socio3economic, cultural exclusion and dislocation of indigenous peoples and their traditional )nowledgeP *8 international trading of cultural goods and )nowledgeP and G8 inflow of immigration impacts on national culture, which creates a tension between a sense of threat to the national culture and migrant demands for respect to their traditions in a multicultural society. F!M!:10/!?T 12 19G.?"R.T"1?.: -T9.T!G"!- 219 G:1#.: +1/0!T"T"1?. The multiple dynamics of globalization<regionalism, ine6uality, financial flows, migration of labor and wor), technological innovations, environmental sustainability, and cultural dynamics<form a turbulent and complex environment for managing business operations. While seven trends were highlighted to provide a brief s)etch of interrelated complexities and controversies globalization, it also surfaced other significant issues. Global concerns revolve around terrorism, rapid transmission of pandemic diseases and viruses, the rise of +hina(s and "ndia(s economies, an aging population in wealthier northern countries versus younger growing populations in the southern hemisphere, and advances in biotechnology are intricately embedded in globalization processes. +1/0!T"?G "? TH! G:1#.: !+1?1/@ Globalization entails both opportunities and threats for creating and sustaining competitive strategies. !merging economies offer resources in terms of labor, as well as expanding mar)et opportunities. However, geopolitical relationships and bac)lashes from perceptions of cultural imperialism, such as the tensions between the =nited -tates and

the !uropean =nion during the "ra6 war create challenges for business operations. Global managers have a wide range of options to deal with globalization. 1rganizational strategies for international operations involve two related demands<the need for local orientation and the need for integration 7as shown in 2igure *8. 2irms with low need for local orientation, but high need for integration re6uire a global strategy that centralizes core operations with minor modifications for local adaptation. However, firms with a need for high local orientation, but low need for integration, re6uire a multinational strategy that decentralizes significant operations to respond to local mar)et conditions. 2irms integrating a high need for both local orientation and organizational integration should strive for a transnational strategy. "n addition to selecting a strategy for global competition, managers also need to ma)e decisions regarding the internationalization process. Two processes are important. 2irst, the development of innovations in a home mar)et and as products moves along the product life cycle stages, firms can ta)e products entering into the plateau of a mature stage to new international mar)ets. 1ften the flow moves from developed to developing countries. -econd, stages of internationalization with foreign entry modes that involve increasing resource commitment and ris)s start with exporting to licensing or ,oint ventures to wholly owned subsidiaries. The stage approach to internationalization ta)es time, which is a challenge within a global environment where information moves around the world in nanoseconds. .lternatively, Eenichi 1hmae argued that the speed and complexities of globalization re6uire firms to rethin) their internationalization process because incremental stage models are too slow. Given the rate and 6uantity of )nowledge flows in global competition, firms are li)ely to face competition in their home mar)ets, with comparable innovations to their own before they are able to establish a foothold in the international mar)et. The incremental stage models are too slow for competing in an increasingly integrated global economy. 1hmae suggested that firms form global strategic alliances with partners established in three ma,or mar)ets<?orth .merica, !urope, and .sia, particularly Bapan. Fevelopment of global competitive intelligence and innovation among the partners provide for rapid mar)et development and the establishment of strategic positions in

multiple locations. #asically, globalization into the twenty3first century creates a fundamentally different competitive environment that shifted from incremental internationalization processes to almost simultaneous deployment of innovations. This internationalization process also shifts the wor) of global managers from managing a field of expatriates to collaborating with strategic partners across national borders and managing global off3shore outsourcing vendors in multiple geographical locations. 2igure * -)ill 0rofile of the !ffective Global /anager Globalization is a culmination of complex and controversial trends that include degree of geographical integration, ine6ualities, financial flows, labor and wor), technological innovations, environmental sustainability, cultural dynamics, and organizational strategies for global competition. Given a historical perspective, globalization has fluctuated over time and many indicators support a trend of increasing globalization since the $%&'s. While the =nited -tates is the dominant superpower in the global economy, the rise of both +hina and "ndia is an important consideration for international business. Global managers have options for strategies and structures, as well as different internationalization processes. "n sum, globalization creates a competitive arena where /?+s evolve into global networ)s with collaboration and controversial differences as necessities to sustain a competitive strategy.