The globalized world

BY ANGEL MWORIA

BAPRM 42642

We now communicate and share each other’s culture through travel, trade, transporting products around the world in hours or days. We are in a huge global economy where something that happens in one area can have knock on effects worldwide. This process is called globalization.

Globalization is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services. The biggest Companies are no longer national firm but multinational corporations with subsidiaries in many countries.

Globalisation has been taking place for hundreds of years, but has speeded up enormously over the last half century, Globalization has resulted in:

Ø  Increased international trade: there has been an increase of trade internationally. Companies export and import products very fast and reaches the customer easily.

Ø  A Company operating in more than one country: due to the increase of communication and technologies and increase of customers worldwide Companies decide to build other branches in other countries where they can operate the Companies activities and reach their customers and satisfy their needs and reach Companies goals.

Ø  Greater dependence on the global economy since the great nations are the one holding the currency and the world economy they are already powerful making the third world countries depending on them always. They create some terms and conditions at a very high interest living other nations poor and dependent always.

Ø  Freer movement of capital, goods and services there has been importation and exportation of goods and services around the world in hours or days and reaches to the customers. This increases the interconnectedness among countries and results to exchange of ideas among people in different nations. Through the technologies that is internet the buyer can easily communicate and bargain on the product or services he or she will transport.

Ø  Recognition of Companies such as Vodacom Company through the internet these companies can make a meeting. That is they can form a television on the internet were only the employees can understand the communication and motivate each other to do their responsibility.

The main reason for globalisation is:

 Improve communications:

That is the internet and mobile technology has allowed greater communication between people in different countries. The Company can communicate with the customers exchange ideas and thought on how they operate the activities in the Company in order to create a networking community.

Freedom of trade:

Organisation like the World Trade Organization (WTO) promotes free trade between countries, which helps to remove barriers between countries. People are free to buy products from other countries at any time they needed.

Improvements of transportation

Large cargo ships mean that the cost of transportating goods and services between countries has decreased. Economies of scale mean the cost per item can reduce when operating on a large scale. Transport improvement also mean that goods and people an travel more quickly.

Through the social works and internent organization have built new ways on how they can communicate to their stake holders and reach to them easily.