Business blog 18-11-2013

This is the last week of learning of our introduction to business and management, and we focus on international business and globalization on this week.

 

International business means that the organizations are trading all around the globe, and breaking the national boundaries.  For more detailed, organizations have their production lines in different countries, cross border sale of their products and services. Also multinational corporation are the organization that operating in more than one country and most of the large organizations are operating in the global market.

 

For globalization, it has so many definitions, so I just simply define globalization as the fusion of the world in multi ways, the most common way is economically, also there are culturally, politically, technologically and environmentally.      

First of all, I would talk about globalization for an economical aspect, as I think this aspect affect the world the most. The economic aspect is made up by the international market of commodity, labour and capital.

And in the 1900s, as technology development, the technology of transportation and communication were improved, it encouraged the international trade and investment.

 

 

Plus, in 1995, there was the formation of the world trade organization (WTO), which it aim to protect the member counties while they are trading internationally, and one of its functions is to set up the international trading policies and principles, etc.:

·         Non-discrimination: The WTO member are required to apply the same conditions on all the trading with other WTO members

·          Promote fair competition

·         Encourage development and economic reform: Provide help to the developing countries

With the continuous development of technology, and the WTO, it leads to encouraged more organisations to start trading internationally.

Take American as an example, its amount for international trade in 2000 is $2522.31 billion, and in 2012, it raised to $4932.22 billion, it almost a double, which also show the trend of the raise of international trading in the recent decades.

Secondly, for the cultural aspect of globalisation, it can be defined as the cross-border transmission of different idea, meaning, belief, value and knowledge.

For example, the American culture brings a large impact to the cultural globalisation, like:

·         Fast food culture: McDonald become the world biggest food service company in the world, and it corporate 34000 chains in 119 countries

·         Popular culture: The Hollywood (American film and  television industries) dominates most of the world media market and its pop music industry is strong too, many American artists are recognized worldwide

 

 

Besides, some theory stated that in some sense, globalisation equal to Americanization and westernization, which the global culture are influenced by the western culture, and I do agree with this, because the living style like fashion, dining culture are in western style. However, I think the situation are slight changing in the recent year, the culture in Asia are influencing the western world too, like:

·         Japanese animation are popular and commercially profitable around the world, which it generate lot of income for Japan from exporting their animation and licensing the animations to the companies around the world

·         K-pop (south Korea’s music industry): The Korean Wave in 21^st century and PSY's Gangnam Style becomes the most viewed video on YouTube, moreover, from the statistic from 2011, the export of cultural and entertainment service in Korea was US$800 million

  

·         The raise of China: the international trade of Chine in 2012 was US$3.87 trillion, while back to 1998; its international trade was only around US$3oo million. Also, China is ranking the Second place in the world GDP ranking

As a conclusion, I think although globalisation will bring some negative influences to some countries or industries, more international trade can still provide more business opportunities to the world and provide more income to the locals to improve their living standard. Therefore, globalisation will be the world trend in the future and I belief that it would make our world a better place.