INTERNATIONAL BUSINESS (152.

261)

ASSIGNMENT ONE:

GLOBALISATION ITS SHIFT AND IMPACT ON US, HONG KONG AND NEW ZEALAND

ROLL NO: 12103948 NAME : ANSARI SUHAIB

INTRODUCTION
Globalisation is a very wider and broader term the todays business scenario. It
means reducing all the rules and regulations, customs and duties and the entire things which hinder the growth of the national market as a result they were kept to the very limited space and area. Globalisation enhance the economies across the whole globe by removing the barriers to trade which makes the product to flow across the boundaries of the nation.

It gives the new face to the business and to the markets by integrating the world market into a one small market. The real meaning of Globalisation is to integrate the economies and societies across the whole globe, so that the information and ideas goods and services can be easily flow across the borders of the countries with no bar on anything. This Idea of Globalisation had changes many things and made it so easier for the firms and manufacturing companies to produce and sell their goods in any country they wish to desire for with low cost of production and better quality and output.

Trade in Goods and Services is the main phenomenon in the Globalisation which further deals in Foreign Direct Investment (FDI) and many other methods and ways by which entry to the international market is possible. Mobility of capital and human labour force across the boundaries plays a very important role in the development of the economies. The normal theory of International Trade deals in the allocation of resources which have the comparative advantage over the others. Thats why Globalisation had brought many severe changes in the world economy by creating more jobs for the skilled as well as for low skilled workers also because they can now easily migrate to any other country they wish.

Movement of capital across the countries also played very important role in enhancing the production of the product. This was often seen in the beginning of 19th and 20th century when Globalisation was about to be the global issue. With the help of the capital flow the country can enhance its investment opportunities by investing in different countries where it is profitable so they can reap as much profit they can.

Movement of goods, raw materials etc helps the economy of many countries like New Zealand, Hong Kong, and other Asian Countries where the countries are making full use of investment opportunities and thus making their economy strong day by day. Globalisation is a holistic approach to make the markets across the whole globe into one single market place.

For example: - China is the biggest manufacturer of textile so the country can export its textile to any other country in need and can import anything which is short and very rare and in need in China. So like this by the free flow of commodities and raw materials makes the things easy for the government of the country as well as for the people of the country.

So now in short we can say that Globalisation is the step to create a new sense of marketing and doing business in the new era by which things are becoming easy and more reliable for every one across the whole globe by which sitting at one place you can know what is going on the last part of the planet. Technology innovation, Communication and how we travel now quickly changes many things. In just couple of hours you can be in different country and after that you can reach even more far. So I think Globalisation had changes everyone of us in any way you can say in travelling, in communicating, and even in eating,

For example: - There are many Chinese and Indian restaurants even Italian too in Auckland. So like that it increases the choices of the People. People are now not limited to their choices there is not only single channel on television there are many. Even in education also parents are now keener to send their children abroad for their higher studies and its eventually happening there is increasing number of International students going to UK, US and New Zealand and many other countries. And all this is just happening because of Globalisation the world is shrinking day by day people are becoming more aware more literate and more passionate about their surroundings that what exactly is happening in the world and why.

Discussion
Shifts Due To Globalisation

Technological Shift: - In the recent years we have seen how Globalisation has
changes things, the business and the world economy. And technological change is the very important aspect that is being often discussed. By the invention of new technology it becomes very easy to stay connected with your loved ones every time by the use of latest and handy communicators, you can also travel far places with just a small period of time, development of jet engines and rockets also helps the scientist to reveal some precious truth about our planet. Technological innovation was one among the chief driving force of Globalisation. Inventions which resulted in speed transportation lower the cost of production. This includes development of many fast trains and airlines by which transportation of product and people can be very high and reliable.

Political Shift: - Globalisation also comes with the change in political scenario across
the whole nation. Removal of Tax and subsidies on Import goods and eradication of unnecessary duties and legal paper work also promotes the idea of Globalisation. Various tariffs and quotas have been lifted off and the trade between the countries is being made more free and without much duties and work. This changes the style of how country trade and do business and it becomes more easy and more handy and even more profitable for the country to give rise to his economy and strengthen the base.

Economical Shift: - Economic change also becomes a key factor which is caused by
globalisation. Economical change resulted in deregulation and removal of restriction on financial transaction between the countries. Currencies are now becoming easily convertible and there is no balance of payment.
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GATT was imposed which is General Agreement on Trade and Tariffs result in increase no of International trade and then it become the important aspect of liberalisation. Economic change is far more consistent when comparing from one country to another. There is creation of job opportunities but in many countries the local jobs had been carried by the migrants as a result there is a friction and immigrating services are now tightening its rules.

Impact of Globalisation Shifts on United States

In the US the Majority of the people think that Globalisation is very good for them only few oppose the idea of globalisation. Many people think globalisation is very good for the US economy because it creates job opportunities and it enables the US to increase trade in services manufacturing and agriculture and food products. This further helps the Americans to buy cheap and more abundant consumer goods and as a result it boosts the US economy by creating more employment opportunities.

But globalisation also has its dark side for US because it ruins the developing countries as a result the number of people are migrated to the United States in search for job opportunities and this further spoils the future of jobs for the local peoples which lately results in unemployment and job loss.

Foreign Direct Investment (FDI) becomes more risky in the US. In the PIPA report October 1998 it said foreign investment is not very hard in the US and it allows outsiders too much control over our affairs and the local people only lose their right in their own country.

But still there are many American Companies which have migrate most of their manufacturing jobs to foreign countries where it is cheaper to do business and they are really enjoying the benefit of Globalisation.

Atlas the benefits of globalization are lucid, both on a worldwide scale and as they change US domestic policy. Across the Globe, the economic domino effect of globalization have boost the economies of poor nations, decreased poverty levels, increased the standards of living of millions of people across the whole globe.

Impact of Globalisation Shifts on Hong Kong

Globalisation also hits the borders of Hong Kong and slowly stretches out in the whole country. Globalisation results are very positive in Hong Kong some believe that Hong Kong had taken over the economy of the Singapore in terms of trade, investment and manufacturing of the goods.

In one of the context an economic expert explains that China is the second largest economy in the whole world and for it Hong Kong plays an very important role as it is the gateway to enter and invest in mainland China. While Chinese enterprise view Hong Kong as a Spring Board to expand into the International Market. Hong Kong in thus well as for its unique East meets West Culture.

Hong Kong Opens Its doors for every nation to come and do business free trade of goods and business many outside companies are doing business here manufacturing goods here because they find much better and comfortable.

Despite the success of being the most globalised nation across the globe Hong Kong still fighting hard to maintain its level and there is no resting. Although Hong Kong is doing well in terms of trade, capital movement and integration of culture. But they are still somewhere behind in exchange of technology and idea and labour migration.

Impact of Globalisation Shifts on New Zealand

Globalisation affects the New Zealand in a very good manner. Transportation shift and the technological shift make the way for the Global labour supply in the main market of New Zealand. Rise in the demand of the skilled labour is being fulfilled by Globalisation with the help of immigration or off shoring.

But somewhere down the line off shoring effect the lower skilled workers because of the job shift from one country to another. And the new jobs which are left out were asked for higher qualification and knowledge due to which the lower skilled workers suffers..

And domestically, here in New Zealand, we plan to have a very sharp look at the overall coherence of our own policies. In other words whether our good intentions in increasing products mobility are being supported or potentially compromised by the effects of other New Zealand policies that impact on our developing country partners.

New Zealand is the country of migrant one in the three workers in the New Zealand was born overseas. And in Auckland the number was even high. While New Zealand still like to attract more and more skilled workers because of its demographic change and less completion.

Conclusion

From the above we may conclude that Globalisation had played an huge role in the development of the nation, yet there are some countries which faces the dark side of it.

Hampering of the local industries and job loss in the developed countries like US was some of the negative impact of Globalisation. But still the economies of various countries are trying hard to come over it.

Globalisation is a very dynamic and is a irregular process which had created diverse economic and environmental changes across the whole globe. But in some cases it is seen that promotion of trade and mobility of the capital have facilitated a transfer of green technology and the up gradation in environment practice in developing countries.

Capital flow. Human labour mobility and the technological innovation brings the new era in the business world and changes the course of action of every economy and making the world market a local one.

Hence we can say Globalisation has changed every ones life, the way we think the way we dress and eat and in everything we do was changed by increasing the standard of living and by creating a better sense in everything we try to do

REFRENCES:1. A Fair Globalisation creating opportunities for all. [World commission on the social dimension of Globalisation]

2. Abbott Malcolm. [New Zealand and the Global Economy] 3. Global Business Today: Mc Graw Hill 4. Stiglitz Joseph. [Globalisation and its Discontents] 5. www.nytimes.com 6. www.nzasia.org.nz 7. www.pogar.org 8. www.americansworld.org 9. www.dol.govt.nz