Impact of the Globalization Process in Different Fields Essay

Impact of the Globalization Process in Different Fields - Essay Example This essay outlines the significance of globalization process, that favorably resulted in the rapidity of change, together with different priorities of nations and people. Globalization has boomed in the aftermath of the oil crisis in the 1970s and it changed the relative costs of production inputs and products, gave new impetus to technological innovations, fuelled international financial transactions, as OPEC countries invested their surging revenues in the USA, changed the structure of trade. As economic force, globalization process makes multinational companies (MNCs) the principle vehicle of imperialism’s drive to re-divide the world according to economic power. Economic crisis that is considered to be the greatest since the times of the Great Depression can have negatively impact on the business environment. This is particularly true in countries in transition; moreover, foreign investments can make economics more uneven, with disastrous consequences for both the developing and developed countries. This polarization must be recognized by international business structures and governments through poverty alleviation programmes and strategies designed to reposition marginalized economies to make them possible to participate in current developments. The problem is that even small American enterprises to have an impact on the global market are to think, produce and sell globally. The so-called ‘global firm’ have to link all the small enterprises into global webs of production, distribution and services. The process is rather long-term and complicated one, because the new business model has possess strategic flexibility, competition with co-operation, horizontal, decentralized work structures, and constant communication in real time. [Held D., McGrew A., Goldblatt D. and Perraton J., 1999] The re-organizational process has already begun, that's in why it has got an unstoppable power: it exists at all levels, including economics, politics, social and labor spheres. As economic force, globalization process makes multinational companies (MNCs) the principle vehicle of imperialism's drive to re-divide the world according to economic power. [Douglas I., and Tervio M., 2000] The process of integration of global financial markets has increased capital mobility and global production and distribution structures, but has also weakened the bargaining power of trade unions everywhere - the most key decisions are made by private business that deepened the increase of privatization; such policies have a potential negative impact on jobs and incomes everywhere. [Thomas T., 2000] Through the process of restructuring jobs in some sectors and places have been lost, but the relocation from developed to developing countries has influenced capital mobility and the locational choices of firms, which favors social stability, local infrastructure development, and market proximity. But from the social point of view, the existence of firms with a global reach and profile calls for new business ethics, and over-emphasises on efficiency and technology, that has affected the human element, causing depersonalization and spreading apathy. [Thomas T., 2000] In general, the global economy is to reform the labour market, and its outcomes are directly connected with the way these markets function, with the unionized and non-unionized sectors. There is a close