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Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world (Chatterji and Gangopadhyay, 2005).
Globalization is the most significant event in modern society; it plays a vital role in the changes of several vital elements of society. Owing to the globalization, the perception for various matters rapidly changes. It has huge impact on human values, culture and society. The globalization influence almost all sphere of human lives but the business world witnessed most of its effect. It has both positive and negative effects and the debate on the positive as well as the negative effect of the globalization is become a hot topic for several individual, organizations, agencies as well as the government department, who are in the position for defending the attack of modern globalization trends (Boudreaux, 2008). Here we have an interesting debate in this class on the merit of globalization; however, at the end of the debate we have to deal with the current situation, whether we dislike it or like it. We are in favor of globalization; we support globalization because though it can be found that there is a few adverse effect of globalization, we can see there are many positive effects, which can be, shaded the negative effect of globalization (Chatterji and Gangopadhyay, 2005). The positive effects of globalization are as follows:
- Due the globalization, we can experience international transaction on daily basis and due to this the stock of foreign money mainly US Dollar is increasing day by day, which has strengthen the country’s economy (Daniels and Krug, 2007).
- Currently the export as well as import business can be done even from the remote areas due to this the business opportunity is increasing and it will be possible even for the people of remote areas so that many new exporter and importer is coming in the market (Arnold, Beauchamp and Bowie, 2013).
- Owing to the globalization, the business is promoted via technology as well as e-business. With the help of modern technology and communication techniques, the business become easier and without any hectic business can be done internationally (Haugen and Mach, 2010).
- The globalization omits the distance between the companies and the consumers currently the consumers as well as the companies has pull the market closer. In current scenario, for experiencing McDonalds Burger we need no to go to the USA or UK we can have all this here only (Daniels and Krug, 2007). We can buy Armani’s dresses from here only.
- The globalization explore to the greater economic, political, cultural and technological dependencies between national and international institute as well as economics.
- Globalization can be of market as well as of the production (Hamilton and Wood, 2009).
- The globalization of the market explore the global market to the consumer due to the globalization the consumer can buy their preferred goods from across the world (Hill, 2003).
- The companies can produce their product globally where they can produce their product where they will get their product with minimum cost and maximum quality.
- The globalization can reduce the cost of the market.
- The globalization opens new market opportunities.
- Increase the level of income.
- With help of globalization, the company can access lower cost labor from across the world (Hill, 2009).
- The company can access technical expertise from across the world.
- The companies can access the production materials from across the globe, so that the better quality of production material with cheapest price can be obtained, which increase the profitability of the company.
The globalization supports the innovation , as well as it promotes technological innovation due this we are getting more advance technology, the communication technology is advancing rapidly which help in better control and the co-ordination, the shipping is now more dependable as well as efficient.
Cross examination of opposing team position
- Moreover, globalization is the primary purpose behind the advancement of unhindered commerce between the UAE and different nations. Unhindered commerce has profited UAE a great deal in light of the fact that it permits it to import merchandise at a lower expense than creating them locally. Truth be told, one may condemn that importing outside products harms household makers due to the decrease in the interest on their merchandise. Therefore, they will lay-off a few laborers to make up for that abatement popular.
Supporting: Thus, unemployment rate will expand (Rugman and Brewer, 2001). Notwithstanding, importing a few products has made all the more meeting expectations opportunities in other UAE commercial enterprises, as the UAE economy has focused all the more on delivering merchandise that are more beneficial, for example, oil, gas, and petrochemicals. As such, the UAE economy can deliver on its creation conceivable outcomes boondocks (PPF) which is the mix of yields that the UAE can create at an altered level of innovation and assets; while appreciating utilization past its PPF (Rugman and Brewer, 2001).
- The individuals who have been laid-off can without much of a stretch switch to different firms that need specialists. Moreover, purchasing products at a lower expense than delivering them locally has helped UAE government to spare some cash and utilization it in enhancing streets, cleaning the earth, helping poor people, and expanding wages.
Supporting: Indeed, the UAE has actualized the idea of organized commerce exceptionally well, as it forces no tax (charge) on sent out products and five percent levy on imported merchandise, also that “It has consented to a few facilitated commerce arrangements and set out on transactions either independently or through the GCC.” (Rugman and Brewer, 2001) From my perspective, if the UAE continues exchanging along these same lines, it won’t have to exchange with different nations later on since it has started to deliver numerous merchandise at a lower expense than some time recently.
The positive side of globalization in United Arab Emirates and arguments for the discussion are as follows-
- With expanding the business there is no risk involved as there is a high degree of diversification in the market and increasing amount of competition in the UAE market. Large markets bring certain amount of positive points like quality improvement in the business and business process. The profit is likely seen to have fluctuating rates bringing stability and predictability in businesses in United Arab Emirates.
Arguments for it- Globalization is about new opportunities increasing leverage and easy credit as the money flow is across the boundaries irrespective of local and national in United Arab Emirates. Globalization boosts the aggregate demand, increasing the income cycle and growth in financial condition of the firm, a little risk can be adjusted.
- Job creation- With expansion of business there will be creation of jobs in United Arab Emirates. The company would expand in United Arab Emirates, as more opportunities will be available in these areas (Rugman and Brewer, 2001). There will be more opportunity for United Arab Emirates as these companies willing to expand will prefer the developed countries.
Arguments for it- Expanding the business brings positive note for the company and the country. There is an increase in the wealth of the organization. The United Arab Emirates is already developed with the aspect of job and income groups of their population the new company cannot make a difference in the country like this. There is opportunity for the organization as well as the home country the company belongs too. Thus, the efficiency of the employees and the people associated with the organization increases.
- Offer work good remunerations and other benefits- In the UAE, globalization will offer the change to works. They will be trained about the changes in management caused by globalization. In addition they will be better remunerated.
Arguments for it- With expansion and globalization the company gains a lot benefits and even the benefits are shared with UAE and its economy where the organization plans to expand. Globalization brings new advancement in the economy of the developing country and changes the shape of operations. Availability of cheap labor or workers is a benefit for the organization. United Arab Emirates has made laws to protect its people and look into the matter that they do not get exploit.
An example can be taken to support my team argument- A company dealing with fashion products wants to expand in the UAE market. As a developing country, it offers huge benefit to the organization as well as to the UAE economy. The organization gets opportunity to explore new market with new customers and a scope to increase its revenue. The UAE economy benefits by getting a new brand and new offers .............
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