Unit 18: GLOBAL BUSINESS ENVIRONMENT Lo1: analyse

Transcript:Unit 18: GLOBAL BUSINESS ENVIRONMENT Lo1: analyse:
Unit 18: GLOBAL BUSINESS ENVIRONMENT Lo1: analyse the key factors which drive globalization GLOBAL BUSINESS ENVIRONMENT P1: analyse key factors of cost, market, environment and competition that drive global commerce and trade overview 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. Globalization is not new, though. For thousands of years, people—and, later, corporations—have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages. Likewise, for centuries, people and corporations have invested in enterprises in other countries. In fact, many of the features of the current wave of globalization are similar to those prevailing before the outbreak of the First World War in 1914. Theory of globalisation Globalization is an elimination of barriers to trade, communication, and cultural exchange. The theory behind globalization is that worldwide openness will promote the inherent wealth of all nations. While most Americans only began paying attention to globalization with the North American Free Trade Agreement (NAFTA) debates in 1993. In reality, the U.S. has been a leader in globalization since before World War II. Cultural Culture is a dynamic force for change rather than a rigid set of forms or parameters that must be strictly adhered to. The current era of globalization, with its unprecedented acceleration and intensification in the global flows of capital, labour, and information, is having a homogenizing influence on local culture. While this phenomenon promotes the integration of societies and has provided millions of people with new opportunities, it may also bring with it a loss of uniqueness of local culture, which in turn can lead to loss of identity, exclusion and even conflict. This is especially true for traditional societies and communities, which are exposed to rapid ‘modernisation’ based on models imported from outside and not adapted to their context. Cultural Balancing the benefits of integrating into a globalized world against protecting the uniqueness of local culture requires a careful approach. Placing culture at the heart of development policies does not mean to confine and fix it in a