Global Economy Essay

internationalisation is corporate driven its the system which allows trans- home(a) business and finance to invest what they want where they want to obtain what they want and to buy and sell what they want, everywhere, with the fewest restrictions possible coming from labour laws, social conventions or environmental regulations. Globalization is also finance driven. Corporate-led, finance-driven globalization has been extremely successful (George 2008, p. 1).Globalization has been extremely beneficial to those at the top of various societies. The benefits of globalization for ordinary commonwealth train been problematic checkicularly in the fledged capitalist countries. Those who advocate for neo-liberal globalization claim it thrusts the floor upwards for everybody an extremely debatable proposition in a world where a billion people exist with a buying power of a dollar a twenty-four hour period and approximately half the world with less than two dollars a day (George 2008, p. 1).Multi national corporations, finance corporations and wealthy persons contribute less and less proportionally in taxation to national budgets. This means the ordinary people, consumers and local anesthetic businesses pay more than their reasonable allocation (George 2008, p. 1). More and more people ar doubtful as to whether globalisation has delivered on its promises and benefits. 57 % of the people recently interviewed in the G7 countries are of the opinion that globalisation has moved too fast in recent years.In twenty septet other countries, 64 % were of the opinion that the advantages and troubles of globalisation were unjustly shared. Only in ten out of the 30 four countries polled did the bulk of the people think of globalisation as a positive factor for local economic increment (Falk 2008, p. 1). World Sourcing and Outsourcing In the corporate world, companies are exploiting the emerging markets in line with globalization. A company like Levono has its products, s erviceman re consultations and facilities in 160 countries around the world.Market trends such as outsourcing have created a snip zone that universal. This means that the company can access the resources it needs from any part of the globe where the costs are lower at any time regardless of its time zone. It is a top-down strategy designed to save on costs by handing the non-core operations to a three party who offers the lowest price. World sourcing is a business strategy that influences the positive aspects of globalization to maximize on take to be and quality that the company delivers to customers globally (Walker 2008,p. 3).Companies in the global economy can source for everything where the lift out talent exists and like wise sell where the best market is located. Companies that practice world sourcing create value twenty four hours a day. The global distribution of resources such as talents and markets has created a nucleus of chastity strategy. A company in this case ca n have its marketing department in India, design being done in Japan, its fulfilment centres located in North America and the manufacturing facilities located in China, Latin America, India and Europe.This distribution of resources also means as companies tap into the skills and talents spread across the globe, career choices and so cease to be hindered by geographical boundaries (Walker 2008,p. 5). World sourcing as a globalization strategy is envisaged on the principle that brand cuts across nationality and geographical boundaries. The more a company extends to the entire world for the finest ideas, human resources and processes, the more it develops in the refined essence of its brand name.It is appraised not by nationality, but according to the faithfulness of its products, services, degree of corporate social responsibility, governance, environmental practices, transparency, and ultimately, the degree of value it conveys to customers globally (Walker 2008, p. 7). Global corp orations that world source their products and services are exposed to the inquisitive light and censure from challenging consumers and government watchdogs in contrary countries. They can only build confidence by complying with the highest principles of governance, compliance transparency, and excellence (Walker 2008, p.7). Global Networking Debate on networked economy began as early as 1865 in Paris. However it is the advancement of Information and Communication technology (ICT) that has turned the world into a truly global village. This means a global networked economy. By definition a global village or a global networked economy means that there is fast relay of information from one part of the globe to another. The connectivity of the internet today has contributed greatly towards global connectivity (Tarjanne 1997, pp. 2-3).The international Telecommunication Union (ITU) has played a vital part in networking based on global connectivity. The Radio Regulations, one of the in ter-governmental treaties of which ITU is the guardian recognizes the electro-magnetic spectrum as a universal resource of humanity. A Recent development in this field is the advancement of satellite handsets, the Global Mobile Personal Communications by artificial satellite (GMPCS). Satellite systems will enable access to essential telecommunications from any part of the globe regardless of time zones and geographical boundaries (Tarjanne 1997, p.4). However global networking is still not yet fully attained. Access to technology is mostly influenced by wealth. Approximately 97% of all meshing hosts are based in the developed countries which even off 16% of the worlds population. There are approximately fifty countries that still lack an Internet host within their boundaries. One of the objectives of the ITU is to support the extension of the benefits of the new telecommunications technologies globally (Tarjanne 1997, p. 5).