The Effects Of Globalization

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The Effects Of Globalization

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Contents

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TOC o “1-3” h z u Effects of Globalization PAGEREF _Toc379448382 h 2Comparing Cultural differences in the Middle East, Europe, and America. Comparing religions, culture, government, food, work, and daily activities ethics, and negotiations, ruling of the governments, conflicts, resolutions PAGEREF _Toc379448383 h 5Government differences PAGEREF _Toc379448384 h 8How to develop a country market entry strategy using a SWOT analysis PAGEREF _Toc379448385 h 11Exportation PAGEREF _Toc379448386 h 11Use of the foreign Production as an Entry Strategy: PAGEREF _Toc379448387 h 12

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Introduction

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Globalization is the global alliance in matters of the trade, economy as well as the culture, in the literal sense; globalization is the transformation of a regional phenomenon into a global ones. It can also be described as the process in which people around the world get unified to form a one society that functions together. Globalization heavily banks upon worldwide by its expansions and integration. Due to advancement in the field of technology, today, the world at large has shrunk into a village, given that globalization has swept all the boundaries in politics. Globalization in general is the combination of technological, economic, socio-cultural and the political forces. This paper hence analyzes the effects of globalization while comparing the cultural differences in the Middle East, the Europe and America as well as analyzing a SWOT analysis on how to develop the country market entry strategy.

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Globalization has got different definition, according to Palmer, (2003), he defines globalization as “the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result.”

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Effects of GlobalizationGlobalization has got several aspects in which it affects the world in different ways which includes the industry, the competitors, and information. Globalization has brought oppression in flexibility and ever-changing working situations rather than bringing steady jobs which have a higher income. An outsourcing is one of the factors which have made securities in jobs to be something of distant past. The effects of the globalization are in many ways manifold, globalization affects various aspects of economy of the world bringing about an overall of financial betterment (Rugman, 2003).

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The impacts of globalization exert an intense influence on financial condition and industrial sectors of a given nation. Globalization tries to give birth to some markets that are based on the industrial productions all over the world. This in return tends to widen the access to diverse variety of the foreign commodities that can be consumed by customers, hence owing to marketing strategies undertaken with diverse corporations. In today’s’ world economic arena, globalization has facilitated the formation of the common worldwide markets on a basis of liberal exchange to cash as well as, kinds. As political globalization is so much concerned, this has helped to form a world government so as to normalize existing interactions within the countries. It has also ensured a right emerging of economic as well as, social globalization (Rugman, 2003).

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Globalization has caused jobs erosion in almost every country as well as, fueling unemployment. This has come as a result of where employers in many cases threatens to take some jobs a broad so as to save the money, several employees within the country are afraid to face layoffs and pay cuts at the end. White-collar jobs become so vulnerable to that kind of the risk. The above scenario in most cases causes emotional unrest along with disorientation in an individual (Rugman, 2003).

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Globalization has brought the borrowing of culture among the different states. This can be an advantage and it can also serve as a disadvantage. It is an advantage in that it makes people from other states to learn about the cultures of different people from other states thus enhancing the bond between the different states and they also learn to appreciate as well as, respect other cultures. It is a disadvantage in that other people may adopt other culture fully at the expense of their own. This may lead to the fading away of a particular culture since the people of that particular region have embraced a different culture and have shunned their original culture. This situation must be avoided at all costs so that people cannot forget their original roots(Rugman, 2003).

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Globalization on the other hand, seems to be responsible for ever-rising gaps existing between impoverished majority and affluent few. The feeling of resentment fails to predict well for the society. In this case, globalization tends to make big multinationals plus corporations to be powerful enough so that it interferes with policy making of the country. The interest of people tends to get jeopardized since they are willing to call shots. Globalization has as well contributed to ecological risks with a rise in global inequalities (Rugman, 2003).

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Globalization has thrown varied challenges for example inequality among different nations, the volatility in the financial markethave spurt open while there has been worsening in environmental situations. The other negative or impacts of globalization is an aspect where the majority of the third world countries used to stay away from limelight. Till in the early nineties when globalization process became guarded by the trade and financial barriers. The economic integration which was brought by globalization also enabled most countries to free flow of the information, technologies as well as, people. The integration brought different dimensions such as cultural, political and socio-economic (Rugman, 2003).

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Globalization worldwide has created an enormous trade imbalances proving unsustainability. It is however argued true that, most countries have globalized labor as well as, capital, although, most of those countries have not globalized consumption. Most workers who are in a low wage countries but benefits from globalization in most cases they don’t earn enough to make them purchase kinds of consumable products they may be producing. As the result, some consumers such as those who stay in America and other countries who are already been developed are still expected to drive factories in countries like China and other countries who still experience a low wage (Rugman, 2003).

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Globalization has also contributed to a world of the economies in different ways. The advancement in science and the technology today allows most businesses to cross the territorial boundary lines with an ease. As a result, many companies happen to become extremely productive and competitive raising the quality of products and the living standards of people in the whole world. Secondly, a number of companies from developed countries have managed to venture them in establishing foreign operations taking an advantage of the low cost in terms of labor in poorer countries. This type of businesses activities normally provide influx of investment funds to countries which are less developed (Rugman, 2003).

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Globalization has led to the introduction of education in those states that were remote and could not access education. This is of a great benefit since knowledge which is power is being passed to large population so as to face out illiteracy which is a major problem in the developing countries. The introduction of education is also being embraced by most of the states of the Middle East since they have come to terms with the importance of educating their children, only a small number are still opposing the idea, especially the idea of educating the girl child.

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In conclusion, globalization is very inevitable; therefore, every individual, the companies and the governments should be urged to use balanced approach in order to take appropriate steps in dealing with matters which are related to financial and economical gains.

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Comparing Cultural differences in the Middle East, Europe, and America. Comparing religions, culture, government, food, work, and daily activities ethics, and negotiations, ruling of the governments, conflicts, resolutionsReligious differences in the Middle East, Europe, and America

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Globalization has impacted both positively and negatively all around the globe. The Middle East states have portray a varied attitude towards different forms of globalization, for instance, the Islamic of the Middle East unlike the Latin America or the East Asia, are not in support of globalization. They have the perception that the introduction of globalization will put their culture in harm. They view globalization as a threat to their culture. According to an East Scholar, Rubin, unless the Islamic of the Middle East find something to write home to in the whole globalization issue, the continued rebellion will not cease (Moncada-Paternò-Castello, Vivarelli, & Voigt, 2011).

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Globalization has played an important role in bringing together the Muslims who had segregated themselves. When studied carefully, the Middle East participation in the globalization activities is seen to be more active as compared to the other parts of the world. To view globalization as westernization, as once said by a Professor who studied Islamic, just show that one is turning behind eye to the tremendous development such as improvement in the infrastructure, and the introduction of technology which played a major role in dispelling the Palestinian-Israel conflict bringing them together to discuss issues related to the region. The professor also goes on by saying that globalization has created a better of what Islamic is and what it entails to be a Muslim in the Middle East states (Moncada-Paternò-Castello, Vivarelli, & Voigt, 2011).

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For any state to grow economically, they have to be ready to embrace the introduction of the new innovations which come as a result of globalization. They must be able to adjust to the changes that come with globalization. Some of the Middle East states should loosen up to the idea of globalization and use is to their advantage in order to have an economically stable country. The rift between the west and the Islamic is due to lack of proper communication. The Muslims are not in support of the globalization since they find it to be more westernized, so they are finding their own way of globalizing themselves. For instance, they allow the use of internet among their followers to connect together to those people who share the same understanding of Islamic.

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Many states of the Middle East are fiercely against the incorporation of globalization in their culture. They are adamant to some aspects of globalization so they cannot put up with some practices that come along with it. They strongly cling to their culture and they cannot change it to go with the trend of the modern world, so they opt to remain conservative.

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The government of the Middle East is not ready to adopt the introduction of globalization in their culture. The anti- globalization is rampant in the better part of the region. It has also resulted to feuds in the region. There is an enormous fear of embracing globalization. Its vivid that the better part if Middle East is not in support of the changing trends, globalization has proven to of benefit, for example, the Gulf State shich has chosen to take a different path and they have chosen to embrace globalization and as a result they improved their state economically. They chose positive side of globalization and used it to their advantage. They associate themselves with the west which has been of a great significance to their economy (Moncada-Paternò-Castello, Vivarelli, & Voigt, 2011).

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Being rated as the least globalized, the nations in the Middle East need to go an extra mile and work harder at least to ensure improvement in their economy to narrow the gap of economic difference as compared to the other parts of the world. The Middle East are not ready to partake the foreign policy of the Americans even thought they have been in close ties. The globalization of the Americans whole during the reign of Bush has had a fluctuating impact on the Middle East.

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For America and Europe, the case is quite the contrary from the Middle East. They are more approving to the idea of globalization since its much more of the western culture which they are used to. Globalization is seen to be similar to westernization or rather modernization which in fact poses an immense threat to the traditional culture which America as compared to the Middle East and Europe can be seen as the one in great support of the idea of globalization, and therefore wanting to force it to the other states. People tend to think that it had no impact at all to the Americans, but that is not the case. They too had a share of the impact that globalization brought along with it (Moncada-Paternò-Castello, Vivarelli, & Voigt, 2011).

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The Americans during the reign of bush, he appreciated the need of globalization to counteract the activity of terrorism not only in America, but also in the whole world. He thought that the terrorist would pose no threat to their security since they were not confident about their security. He used the idea if globalization as a defense mechanism and it worked to their advantage.

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Globalization has helped to improve the civic society in America by integrating the citizens. This is so, since it builds unity and the need to work in togetherness hence yielding high quality outcomes. It also establishes peace among the states and there is an interaction among the people of the different states therefore creating links between them. That is positive in that resources will be shared and trade enhanced between the states raising the economy of America.

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The Americans have no dispute over the influence of another culture on them. A greater percentage attributed the diversity of culture to their success according to ‘a Pew poll 2000. So this shows that when a state takes globalization and use it to its advantage, they stand a great chance in improving its economy.

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Government differencesThe American government are focusing less on inequality rather they are giving full thought to the creation of opportunities to ensure the moving forward of America as a whole. This is proving to be of great significance in their development in that they try to create employment opportunities to its citizens.

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A minor group in Europe is resistant to the extent to which they are to adapt to what is seen as the American culture which is as a result of globalization. Though a major part thinks that things like food, for example the Japanese sushi, the broadcast in the television and any other effects of globalization have nothing to do with the Americans.

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The Europeans are depending on the United States to reinforce their security since they fear the danger of terrorist attacks and the attacks from the Middle East. Since the European government is not all that confident in their security globalization, they are left with no option than to depend on the United States for the security stability

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Globalization has brought about the borrowing of culture among the different states. This can be an advantage and it can also serve as a disadvantage. It is an advantage in that it makes people from other states to learn about the cultures of different people from other states thus enhancing the bond between the different states and they also learn to appreciate as well as, respect other cultures. It is a disadvantage in that other people may adopt other culture fully at the expense of their own. This may lead to the fading away of a particular culture since the people of that particular region have embraced a different culture and have shunned their original culture. This situation must be avoided at all costs so that people cannot forget their original roots.

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As much as Globalization in a way is a threat, America have chosen to perceive globalization as an invention that helps build connection between different states in the world hence creates a rapport between different states. This in turn enables the creation of opportunities and there can also be the sharing of resources between the states since they are in friendly terms. In this case, the advantages of globalization in this case overshadow the disadvantages.

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In all the three, globalization is not received with open arms, in that it leads to unemployment to the same-skilled and unskilled persons, low income or even retrenchment. This in turn leads to increase in the level of poverty in the states. Due to lack of employment, people engage in corruption to get employed and this serves as a great threat to the stability of the economy of any state.

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Globalization also brings about conflicts. This is mainly because not everyone will be in a position to access the knowledge on the know-how of the new inventions, for instance, in the world of technology, they tend to be left out when it comes to getting employment, while those that are able to be well informed with the new inventions get employment opportunities. This creates divisions among the people of the states and therefore opens the door to conflicts between the have and the have not.

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Globalization has also impacted in the sector of trade in that it has been of benefit only to the developed countries which are known as the developed countries and has left vulnerable the developing countries. Europe and America are allowing only the goods and services which are of high standards into their markets. The developing countries, lacking the high-tech machinery, are left out this is mainly because of health matters among other issues (Moncada-Paternò-Castello, Vivarelli, & Voigt, 2011).

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Information Technology is also as a result of globalization. It has impacted both positively and negatively after its adoption. In the positive side, Information Technology has promoted communication all around the world. It has connected people together and made the world be like a global village. It has also enhanced trade, education, the growth of economy among other things.

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Information Technology has impacted negatively in the society in that it has increased crimes, for instance, drug trafficking, the fading away of ethics. The internet has corroded the morals of the society through the information that is being posted there which can be accessed by anyone even the small children. This degrades the morals of the society since the things which were considered to be a taboo to speak about are being posted in the internet.

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Globalization has led to the introduction of education in those states that were remote and could not access education. This is of a great benefit since knowledge which is power is being passed to large population so as to face out illiteracy which is a major problem in the developing countries. The introduction of education is also being embraced by most of the states of the Middle East since they have come to terms with the importance of educating their children, only a small number are still opposing the idea, especially the idea of educating the girl child.

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How to develop a country market entry strategy using a SWOT analysisSWOT analysis is commonly used in marketing analysis. It tries to look at the business and external environment in order to anticipate future actions the country may need to take so as to defend or to expand the market position. SWOT stands for the strength, weaknesses, opportunities as well as threats a given firm may have. The market entry strategy on Middle East, Europe, and America can be developed by analyzing all the strengths, weaknesses, opportunities and threats of those countries also known as a SWOT analysis. Strengths are basically resources that a country or any organization could use effectively to achieve the set goals. Weaknesses in a country defines the competitive deficiency, it refers to something a country is lacking or does poorly at, putting a disadvantage in the market place. Opportunity on the other hand, is a major favorable condition the country’s environment such as the political, economical, sociological, technological and physical ecological also known as (PESTLE) analysis. However threats are presently unfavorable situations in the country’s environment. Therefore, the following points explain how those countries can enter into the market strategy.

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ExportationExportation in countries in most cases allows the commitment of those countries to get entry to market strategy. Exportation of commodities to foreign markets tends to be a strategy most countries follow to enter into their markets. Since most of the countries fail to offer enough opportunity for justifying local production, for that reason, by the means of exportation, countries manufacture their products for various markets so as to obtain the economies of scale. In many cases, exports do normally add volumes to already production operations that exists elsewhere making marginal profitability of exports to be very high. Countries have two options of exporting their operations. The first form can be done directly under the control of the country or outside the countries control this being indirect.

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Use of the foreign Production as an Entry Strategy:Those countries should also use the foreign production to act as their entry strategy. Most countries realize that, when they open new markets as well as serving the local customers better by exporting to that market, sometimes it does not become so sufficiently strong in realizing the strong local presence. Because of that, most countries look for batter ways of strengthening their bases by entering into several ways of manufacturing.

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Ownership Strategies

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The country strategy can also be developed by having an ownership to those strategies. Countries that enter foreign markets should always decide on more suitable strategy entry. They should be in position of arranging ownership as wholly owned subsidiary or in strategic alliance. Strategic alliances are different in which more than two countries contribute several resources directly in collaboration.

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Mergers and Acquisitions

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The country market entry strategy can be developed through Mergers and Acquisitions. Although some country’s firm normally makes acquisitions as a need to enter into the markets more quickly than building the base from the scratch or just entering a certain collaboration that has made an acquisition routes to be extremely more attractive. This kind of trend has been aided by the means of opening various financial markets, hence making acquisition to be public in trading companies. This has also made the unfriendly takeovers carried out in foreign markets to be possible. Conversely in other countries which are yet to develop, merges as well as, acquisitions are somehow difficult to make work because of various reasons.

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The major advantage of the acquisition in most cases is that, the firms can be easily positioned into a new business. It becomes so easy for the country who have firms that prosper well to acquire an existing firms so as to take a potential competitor outside the market, Acquisition on the other end can have some drawbacks given that it can be an expensive way of entering a market and it also poses several challenges.

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E-commerce

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The country market entry strategy can also be developed by portals or Electronic Business that is carried online. The revolution technology of most internets with a wide range of connected networks for the computers has given an extreme rise to virtual entry market strategy. Use of electronic means such as web pages, the e-mails, and file transferred as well as the communication tools in most firms have enabled many country to enter markets without looking down. A country that has companies which establish servers on Internets as well as, opening the web pages in most cases get connected anywhere in the world. Customers who are consumers usually use modern Internet to browse for products and services as well as making purchases online.

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Conclusion

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In conclusion, globalization is very inevitable; therefore, every individual, the companies and the governments should be urged to use balanced approach in order to take appropriate steps in dealing with matters which are related to financial and economical gains. In all the three countries that is the Middle East, Europe and America, globalization is not received with open arms, in that it leads to unemployment to the same-skilled and unskilled persons, low income or even retrenchment. This in turn leads to increase in the level of poverty in the states. Due to lack of employment, people engage in corruption to get employed and this serves as a great threat to the stability of the economy of any state.

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