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1. Introduction
Globalization has become so crucial in todays era it has affected almost everyone living on this
globe. It can be on businesses, education, countries, customers, environment, trade, world regulation
and etc. Many people don't realize how much of an affect globalization has because they ignore the
big picture Almost every aspect of the economy is impacted by globalization.But on this work, the
main focus would be given to businesses and students. How globalization has impacted international
businesses and students.
In order to gain deep understanding and knowledge about globalization and its affects on businesses
and business students, I have described what globalization is, its both negative and positive impacts
on businesses and students.
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2. What is globalization?
If the word globalization was googled you would get approximately 101 million hits
which apparently is quite a large amount which is more than the hits received by more
widely known personalities such as George Washington (56.6million), Angelina Jolie
(31.2 million), Bill Clinton (37.1 million) .So this proves that globalization is widely
discussed and is an important issue in todays era. (Boudreaux, 2008)
But what is globalization? According to (IMF 2006) cited in (Ervin & Smith, 2008, p.2)
defines globalization as Economic globalization is a historical process, the result of
human innovation and technological progress. It refers to the increasing integration of
economies around the world, particularly through trade and financial flows. The term
sometimes also refers to the movement of people (labour) and knowledge (technology)
across international borders.
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3. How globalization has affected international businesses?
The world is not any longer seen as several nations on one continent but rather as a whole.
On the world of international business globalization has a major impact. In the context of
international business environment the world seems to shrink, time seems to shrink and
even borders between countries have started to disappear.
(Global business environment, p.1)
The world is shifting towards a more integrated global economy both the large and small
businesses are becoming international businesses. Therefore international businesses
should be aware that they cannot really manage these international businesses in the same
way they manage domestic business since countries are different and way the businesses
operate in each country differs too. For example: a countries culture, political systems,
economic systems, legal systems and levels of economic development differ from each
other. Marketing a product for Great Britain requires a different approach than marketing
a product for china. Therefore international businesses should be able to adopt these
changes in order to be successful in this global economy. (Marios et al, 2007)
Globalization has affected international businesses in many ways. It can be positively and
negatively.
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3.1 On the positive side,
it has improved communication between countries thus businesses are easier to
operate,
Provides latest news about other international businesses,
Provides businesses with cheap labour,
Opportunity for free trade deregulation of anti-trust laws has reduced quotas and
tariffs.
Opened up new markets in the fields of banking, insurance and transport which
businesses can benefit from.
New communication tools such as internet and electronic mail has linked many
business people together where they can share information and make new deals.
3.2 On the negative side;
Globalization has reduced the prices of imports so many businesses find it harder
to compete with these imports.
The exchange rate tend to fluctuate more often than before therefore this can affect
businesses as if currency appreciates it can make imports more cheaper and exports
to be expensive. Therefore the goods and services exported to other countries may
seem more expensive. Thus demand for exports reduces.
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Also another impact of globalization is that prices of oil and gases constantly
increase. Gas and oil is seen to be used for personal use as well as whole economy
therefore it ultimately increases business costs.
(Gilman, n.d)
4. How has globalization affected international business students?
In the perspective of education many educational institutes include the term global in
their mission statement to show that they produce globally competent graduates from
their institutes. Globalization has opened up avenues for these educational institutes to
attract international students, research collaborations and even making distance learning
possible around the world. Thus these activities have contributed to the
internationalization of these institutes.
4.1 Positive impacts
When educational institutes become globalized the education they provide to the students
will also be of global standard. For example in my point of view as a student studying
international business I will be able to gain wider knowledge about different cultures,
histories and languages and how to be adaptive to different cultural settings when doing
international business. Through globalization there is possibility of collaboration of
different institutes in other countries and get to know their way of teaching and learning
and even how they do research. I will be able to get know how other institutes in other
parts of the world do the same subject I study in my country.
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Technology and globalization goes well in hand with each other. The very reason why the
world is globalized today could be seen due to the factor technology. Technology has
provided easy paths for students and faculties to access counterparts all around the world.
Through internets audio and video technology it has created new kinds of collaborations.
I will be able to get online notes about international business just from home which will
enable me to prepare for my lectures. But whether these kinds of collaborations can really
give the exposure for students to learn about new business cultures is still on doubt.
As a student learning international business globalization has allowed me to look beyond
the boundaries of my country. The line between domestic and international is becoming
blurry due to globalization. As a student of international business I will be sooner
emerging to the globalized economy where I would be working in another part of the
country. Therefore the ability to work with multicultural teams and understand cultural
paradigms are important practical skills I should have. The very reason Im studying
international business unit as part of my degree is because of globalization.
Globalization has allowed me to combine academic and entrepreneurial aspects together
and make it mutually reinforcing by studying international business. I would be able to
become a globally competent employee needed by all businesses. (Green & Baer, 2003)
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4.2 Negative impacts
Globalization has its own pros and cons; just like we embrace the advantages it has given
us we should know that it has some inevitable impacts on students like us.
Globalization has created inequalities and conflicts between different cultures and the
dominant cultures are happened be on the lead. As a student studying international
business it has made me or rather forced me to embrace those dominant cultures just to be
competent on the global market. Also globalization has made me to compete with students
all around world who study about international business. Due to globalization many
students are now attending graduate and post graduate courses therefore Standard has been
raised due to globalization. I will have to compete with other students all around the world
to be a competent employee in the globalized labour market. Further more globalization
has made graduated students who come out institutes to go look for work outside the
borders of our country. Simply because international migration has become so common
nowadays the rich countries benefit from our investments in human capital. As a student
studying international business this globalization has made us option less.
Knowledge of international business and its operations has become so vital and has been
the key resource to economic growth. Nowadays workers are required to be knowledge
workers rather than just simple workers. Without knowledge, workers are subjected to
marginalization and progressive exclusion. So globalization has impacted me as a student
of international business to be more knowledge based when emerging to the global
economy. (Burbules & Torres, 2004)
Due to globalization, as a business student if Im unable to be prepared for a lifetime
learning and cannot adapt to new technology or cannot synthesize knowledge from
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multiple disciplines often learning new languages and cultures I would be facing
diminishing well being of my future career. Also I should be able to appreciate other
cultures and give importance to them or else I would face hostility when emerged to the
global economy. (Surez-Orozco & Qin-Hilliard, 2004)
5. Conclusion
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In conclusion globalizations have had a major impact on both the international businesses
and students studying international businesses. It has created both negative and positive
impacts on these two aspects. Accordingly, globalization is not only something that will
concern and threaten us in the future, but something that is taking place in the present and
to which we must first open our eyes. But however it is said that arguing against
globalization is like arguing against the laws of gravity.
6. References
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Boudreaux, J (2008) Globalization. Greenwood guides to business and economics ISSN
1559-2367
Burbules C.Nicholas & Torres C.Alberto (2004) Globalization and education: Critical
Perspective. Routledge Ltd, New York, United States of America.
Ervin, J & Smith, Z.A (2008) Globalization: a reference handbook. Library of Congress
Cataloguing-in-Publication Data.
Gilman, R. (n.d) Globalization Effects on Businesses. Retrieved from
http://ezinearticles.com/?Globalization-Effects-on-Businesses&id=3975609
Global business environment (2009) Druck and Bindung books on demand GmbH
nordestetd Germany ISBN 978-3-640-39507-1
Green, M & Baer, M (2003) What does globalization mean in teaching and learning.
Issues in Transformation debates
Marios I, Katsioloudes, Spyros H (2007) International business: global perspective.
Library cataloguing in publication data.
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Surez-Orozco, M & Qin-Hilliard B. (2004) Globalization: Culture and education in
new millennium. University of California press, Ltd. London, England
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