Globalization is the integration of cultures, societies and economies from a variety of countries through the interconnection and intense relationship between international trade, technological communication and politics. Opportunities are created because the barriers of trade, investment and financial flows are lowered.
Blandishing 2004) World Trade Organization (WTFO) encourages free trade between nations, which assist in eliminating barriers among nations. Countries are mostly concerned about the impacts of globalization on local values, businesses, culture and the displacement of Jobs. Wood et al. (2013, 15) suggests that an organization heading towards globalization must ensure that the management needs to have strong understandings of cross-cultural management, language barriers, re- engineering the organization, managing the virtual workplace and International equines strategy.
The western and local both experience rapid economic growth from the advantages of globalization. There is a global market for companies to expand their business. Multinational corporations (Macs) enjoy lower tax rate and cheap labor. In the case of Nikkei, it Justified its expansions by using reasons such as lower input costs, access to new markets and resources, and exploiting economies of scale to lower the costs per item to increase profitability. It lowers the price for consumers because of large scale production.
Globalization provides better event of labor, which offer advantages for both employees and the recipient countries. Singapore benefit from globalization and the movement of labor within the NC because employees are provided with opportunities of further technical knowledge or personal development by transferring them to other International branches. Multinational corporations (Macs) through globalization improve the living standards of less developed countries by providing the locals with sector as foreign manufacturers find it more profitable to tap into the cheaper labor and resources.
The creation of Jobs for the locals increases their survival, although the labor hours and remuneration is different from the westerners, it is enough to keep them off the streets and engaging in unfavorable activities. NC such as Nikkei procure local resources, products and services and in turn brings wealth and foreign currency to local economies. The extra money can be used to built or improve infrastructure, education and healthcare for the locals. BBC AAA) However, the downside of globalization is that some countries like Singapore, may find it difficult to detain competent and skilled workers as those workers may be enticed to look for jobs overseas if they were offered more remuneration. The low manufacturing costs in Asia entice organizations to relocate their factories or subcontract to countries that provide cheaper labor and resources. This will put immense stress on workers and employees in developed countries because of the fear of losing their Jobs. European Restructuring Monitor (ERM) conducted a survey in 2005 regarding the Job losses due to offspring and restructuring.
England, Germany and France top the list. (Gorge 011) Jesse Ferreira (2013) reported in an article in Huffing Post Canada that banks such as HASH Bank Canada have outsourced as many as 23 finance positions to India as part of their “Operational Efficiency’ program. HASH wants to benefit from the expertise in other parts of the HASH Group. Sources within HASH claims that the employees affected have to train their replacements in order to receive their severance from the company. Similarly, Royal Bank of Canada (RFC) will terminate dozens of IT workers at the end of April.
RFC contracted Indian company iGATE Crop to provide IT services to replace the IT workers. Aside from Job losses, local businesses are faced with strong foreign competition from Macs. Eventually, these poor rural villages will be at risk of being replaced by machines and large-scale manufacturers from abroad. (Bass 2004) Then there are reports of exploitation of labor in the poorer nations such as child labor, long working hours, physical abuse and extremely low wages. Another negative by-product of globalization is the growing income disparity between the working class and upper class in Singapore.
Globalization works for those who have opportunities and against those without. Opportunities are provided in the form of overseas education and high paying Jobs in foreign Macs. The working class do not have the financial capabilities to pursue such opportunities and thereby being left out on the advantages of globalization. In conclusion, “Globalization” has become the focus of innumerable seminars, articles and speeches. Globalization operates mainly in the interest of richer nations in the expense of the less developed nations. Globalization has given rise to economic exploitation because of inequality.
As businesses focuses on profit making, it may SSH aside corporate social responsibility (CARS) practices associated with environmental protection, human rights, safety and anti-corruption. (Checker 2006) Macs face public relations nightmare when it is faced with controversy regarding unfavorable CARS. Local businesses will be affected negatively by large Macs and their substantial economies of scale. Globalization assists in building a competitive and knowledgeable population. On the other hand, it brings about a host of problems that overshadow this. The Singapore government has to strike a balance countering it.