Globalization has led to the realignment of newer geographies whose potential had never been realized in the history of the world. The operational potential of businesses today is rated based on their presence on the global platform. Countries have concentrated their synergies to relevant industries to gain competitiveness in the global trade. This has led to the widening of the labor market and the opening up of wider operational and marketing scope for products. China and India are better examples of economies that have developed on the wheels of globalization through strategic realignments based on their strengths. China is known as a competitive labor market for manufacturing while India positions itself as a medical tourism destination of choice.
Globalizations as a Catalyst for International Trade
The world has gone through various changes with regards to matters of trade. Historical contexts of trade and modern day approaches have variances, which have led to positive interactions while on the other hand promoting the spirit of globalization. The world has never conceptualized the levels of globalization that has been reached today. The relevance of trade in simulating international interactions and calibrations of innovations across the world destinations has never been this precise. The technological advancements witnessed today interact with every sector of the world economy. Research and development have assisted several innovations and opened several business frontiers across the world. Countries and global destinations that were projected to be in existence have been opened up for business, tourism and as premier cultural centers through the wheels of globalization.
The world has become one large global hub, bringing together partners other than competitors, and confidants other than enemies. After the World War, I and II countries broke themselves into smaller territories changing the trajectory of their relationship to individualism (Haynes et al., 2017). The focus of world governments shifted towards managing their economic situations and growing above the scale to gain a competitive advantage over the neighboring nations. Skeptic and suspense were the foundations of legislation with every country seeking to manage its affairs in isolation. The construction of the Benin walls in Germany is among the steps that sort to promote the ideology of individualism against collectivism (Algan & Cahuc, 2014). The world has never been so close and united as it is today often viewing the other out of the lanes of partnerships. Therefore, this paper reviews the impacts of globalization on the world and the dynamism constructed through innovations and business process development.
Improved National GDP for World Nations
The improved gross domestic products for world nations have been facilitated by the impacts of globalization and international trade blocs. The nations of the world have been the greatest gainers of the progress of globalization. Previously, the world has suffered serious economic challenges with the greatest nations like the United States of America – US, the United Kingdom – UK and China among other G20 nations witnessing poor economic growth. Wack (2017) explains that the economic recession is one such challenge that affected global business threatening to bring down the gains of innovations and technology. The ability of countries to tie together strategies and run effective businesses is one such strategy that has experienced gains in the economies of the world. China, for instance, has strategically positioned itself as a competitive technological hub, providing access to raw materials and the technological infrastructure for production. This has seen the country grow as one of the strongest economies in the entire continent.
China defines itself as a labor competitive business hub of choice on the continent. The position of China is supported by the Adam Smith absolute advantage theory. Comparison of the theory by Smith upholds the foundation of other theories in support of the ability of a nation to produce more efficiently than other nations (Ragland, Widmier, & Brouthers, 2015). The theoretical foundation of Smith is opposed to trade restrictions supporting the position that trade should freely flow within mutual trade blocs or nations. The prioritization hypothesis of the theories maintains that a county manufacturing a product cheaply should focus on the furtherance of the production levels to improve towards specializations levels. Smith’s theory argues from a contextual aspect, which indicates that an increased efficiency in production by a country leads to improved livelihoods for its people. From cars to computers, including general ware products, China operates one of the most robust manufacturing industries in the world.
Similarly, countries such as India previously categorized as underdeveloped have risen through the ladder of globalization to become a world hub of medical tourism. Indian medical infrastructure has been well developed and rates highly compared to other western destinations. Thomas Freidman and his optimism in the impact of globalization construct an ideology that the adoption of neoliberal policies and measures by world governments has positive impacts of economic globalization that informs increasing trade and trading blocs between nations (Bernier, 2016). The simulations are accelerated through trade relationships across the world, which increases prosperity for citizens while strengthening the relationship between such nations. The ideologies of Thomas Freidman can be equated to the strategies employed by China or India among other countries of the world.
Worth noting is that the medical tourism in India has been growing at an average rate of 30% per annum from 2014. The medical tourism industry costing in India was approximated at £333 million. The approaches of retailing unique products or expertise have seen countries develop their economic and trading frontiers leading to improved livelihoods and higher GDP level. Competitiveness, innovations, and effective pricing strategies are the main principles making world leaders and their nations achieve higher economic stability for their countries. While larger and economically stable countries are taking advantage of globalization to stimulate research and development leading to superior innovations, the smaller nations and developing countries are equally taking advantage of globalization to implement their business interest for growth and sustainability.
UEA being a small country with a few million people strategically positioned itself in the world as a producer of oil. Kenya and Ghana in Africa are equally taking advantage of globalization to market their agricultural products like flowers, tea, and cocoa on the global markets. The mercantilism and the economic theory construct a position, which indicate that the country wealth is a predetermination of its level of gold and silver it owns (Dunn, 2015). The 16th-century theory was believed to promote the aspects of import for wealth gaining while discouraging exports. The theoretical foundation takes cognizant of the importance of wealth creation for states. World nations should struggle to reduce trade deficits since they define the foundations on which the Mercantilism is premised. Therefore, a country should endeavor to receive as much import quotas from other nations as possible as a source of wealth creation. In fact, the country will then apply the wealth generated to improve the livelihoods of its citizens. Economies are experiencing tremendous growth; centrist stability is improved through partnership bringing up progressive legislation and responsible political leadership.
The Foundations of the Green Planet
The importance of environmental management as a facilitator of global trade and economics should be given preference since it determines the progress of every sector in the world business sector. As global nations manage their trade concepts through partnership and effective communications, the environment is one aspect that should be accorded similar passion just like trade discussions. The concepts of environmental citizenry within the current global economic frameworks compel the need for responsibility taken by nations. The process of environmental replenishment and its sustainability has provoked empirical research and debates calling for a systematic analysis of the current environmental trends.
The concepts of the green planet have invited various global opinions with the majority seeking to demystify the positions taken up by a bigger nation on the importance of conserving environmental biodiversity. Knudsen and Lafferty (2016) explain the importance of the ten principles of trade that anchors the principal foundation with respect to the earth and its environment situations. The principle of trade takes a viewpoint that trade and investment in the global arena, actively contributes to the sustainable development, environmental protection, and the mitigation of climate change. This implies that trade or investment agreements should recognize social and the regulations of the environments in order to achieve a balanced growth of both trade and the supporting infrastructure provided by the environment.
The aspects of biodiversity protection and respect to planetary boundaries should be protected by international laws that form the platform through which trade and economic developments are anchored. While conceptualizing the attainment of the green planet, Lambin, (2014) is of the opinion that global emitters of green gas and fossil fuels are the greatest destroyers, but they experience limited impacts. The global environmental challenges are threatening the depletion of the entire world. The environment and human being are interdependent. The presence of a rich environmental biodiversity influences the quality of life for the world citizens. Therefore, the concepts of environmental citizenship as an intervention to stop degradation requires global responsibilities taking through the development of policies and legislative systems to promote better environmental practices across the globe. It is necessary that the replenishment of the environment occurs as an immediate action point.
Socioeconomic developments that are currently shaping the world through globalization should be allowed to switch position with environmental sustainability approaches. The approach of globalization should be applied to the environmental situations of the world. As the world interactions level continue to grow and managed through the frameworks of globalization, the environmental issues should be placed on the table for open discussions (Lambin, 2014). The improvement of the green cover is an important aspect of environmental discussions. This includes responsible manufacturing systems that replenish the environment other than working for its depletion. Greenhouse emissions must be managed while manufacturing activities that are premised on poor and hazardous practices should be stopped. Global trade is one factor that affects the sustainability of the environments directly. It is important that the principles of global trade be synchronized together with those of environmental sustainability. The largest manufacturing and production market must take the lead in environments replenishment. Therefore, as a country struggles in the world to control the highest economic power and manage larger business blocks, similar efforts should be launched in the aspects of environmental management to ensure a secure future for the trade and business growth.
Global Inequalities and Resource Mobilization for Trade
Global poverty and inequalities experienced on the universal platform deconstructs ideologies and the models of an improved economic situation in all the countries. Global development and inequalities existing in the world have become the recent sources of conflicts. Statistics have indicated a drop in the global poverty index (Hickel, 2016). However, billions of people still suffer the limitations of resources, which would be available to enable them to create a difference in life. Financial experts have reviewed the economic situations and reports, which indicate that economic growth, can greatly reduce poverty. However, similar measures are known to increase the inequality situations that generate socioeconomic problems. The current situations of poverty and inequalities in the world require concerted efforts of all nations to develop policies and practical frameworks that can leverage on the global inequality and poverty experienced.
The world economic forum and other relevant social justice organizations have endeavored to develop strategies that can mitigate the effects of global poverty and inequality. The formations of associations like World Trade organization – WTO has been instrumental in moving trading interest from multilateralism to regionalism, encouraging the formations of regional blocks from uniqueness and concentrations in the specificity of products. Strategies such as the Sustainable Development Goal have a direct and consequential effect in addressing poverty and inequality in the world while addressing regional trade as forums for benchmarking. Whereas countries have attempted to domesticate the SDG within their local jurisdictions, reasonable impact is yet to be realized (Hickel, 2016). This is carried in the various economic reports, which indicates that there is a worldwide increase in availability of resources leading to reductions in the global poverty index. However, the economic gaps between the richest nations or persons and the poor equally continue to grow to unprecedented levels.
The level of inequalities witnessed in the world is one of the highest ever to be experienced in the history of the world. Whereas the rich have all in their abundance, the world poorest barely afford the necessities of life (Hickel, 2016). Managing inequalities between countries is a complex process that requires a worldwide coordinated effort. Various efforts have been made to address the inequalities between countries. World finance ministers have developed progressive strategies to ensure inequalities are managed through consolidated effort (Suzuki et al., 2017). However, the absence of adequate resources to manage the inequalities has been the challenge.
Inequalities have existed between living standards of the people, their education exposure levels, and most importantly the houses structures of the country. However, irrespective of the higher resource base required to manage the inequalities scenarios of the world, it is important that a progressive strategy is implemented to keep the course on track. The harmonization of policies on universalism should be scheduled to develop an industry where classifications of the issues to be addressed are based on priority (Suzuki et al., 2017). Such prioritization may include the rationalizations of legislation around the fiscal policies controlling tax policies, the introduction of social justice schemes as well as closing of the loopholes experienced in tax evasion laws.
Labor Harmonization Conflicts in Trade
The aspects of labor violations and employee labor rights abuse for people working under international trade arrangement and agreements are critical areas that require immediate attention. World labor associations and trade unions have constantly advocated for uniformity or harmonization of salaries and wages within similar job groups. Several labor violations are happening in several destinations of the world. Despite the fact that economies like the US have very strong and functional trade union systems, the country still suffers from issues of a sweatshop. Many people are exposed to strenuous labor with little or no compensation mechanism. The Unitarist theory or industrial relations are favorite approaches among employer within this kind of work environment (Bloch & McKay, 2015). Such employers principally focus on profitability rather than concentrating on the welfare of the employee for sustainable operations. Unitarist have issues with employee unions fostering the logic that loyalty away from the employer is a distraction. This is contrary to the global processes of poverty alleviation that require concerted efforts supported by labor rights of the casual employees. Even though there has been an assumption that the provision of labor opportunities, including sweatshops, alleviates poverty, Bloch, and McKay (2015) explain that people who work under conditions that only aid them to attain food for their families or house rents live in a vicious cycle that rolls around the abject poverty.
Child labor has serious impacts on the future of the global economy. Statistic reveals that Asia, Pacific, and Africa rate highest on child labor with items like shoes, clothes, and chocolate or coffee leading to the prevalence of child labor. It is important to note that the continuations of such activities do not improve the poverty situations of the world. Labor harmonization has been an important aspects in managing improved working conditions of the world poorest people. Similar to the challenges of the Unitarist theory is the Marxist theory of industrial relations, which posits that capitalism raises elements of corruption and greed exposing off employee to suffer serious violations of rights while the organizations accrue several profit levels.
It is evident that the global trades, as well as global leadership, have an opportunity to restore the world economy needs of the current generation. Globalization has reduced the world into a single global hub leading to easier business-to-business interactions and the movement of material from one area to another. However, globalization and the platforms that support it should ensure the inequalities witnessed today are managed through effective policy formations and the implementations of strategies that will mitigate its diverse effects.
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