Watch Out The Drawbacks of GlobalisationIt is fiercely argued about the globalisation whether merits outweigh drawbacks, as the progress of multinational corporations and the ampliative international trade. According to the definition given by an article named Turning Their Backs on The World (The Economics, 2009), globalisation is the procedure of integrating the movement of goods, capital and jobs in the global scope. Just as Tim (2009) mentioned, numerous famous products, such as Coca-cola, Accenture and Nike shoes, can be purchased almost all over the world. Indeed, globalisation has a significant impact on the economy, politics and culture, as a consequence, it has become an irreversible trend.Nonetheless, this essay attempts to demonstrate that the disadvantages emerged with the development of the globalisation are overweight when compared with benefits. In order to demonstrate this it will be shown that the favourable and unfavourable impacts brought by globalisation to the growth of a firm. Furthermore, the beneficial and adverse aspects influenced by the globalisation to the culture and economy of a country will also be discussed.As to the beneficial effects to a corporation, it is capable to decide on a flexible model for the futher growth which allows it to make the most use of local and overseas markets. For example, under the background of globalisation, international trade is a common form of business, therefore, the firm can selectto expand the business either in the local nation or across border to the appropriate nations where can help to achieve the most amount of profits, which is the main purpose of every corporation. Moreover, To expand to other countries means that has a wider market owning new customer groups with various demands, which consequently means that there hides huge business opportunities and a more generous margins. In a word, the increasing liberalization of markets all over the world are provided by globalisation to give multinational companies access to customers and profit margin unexpected, as are stated by Tim in 2009.Adversely, in despite of so many advantages, the opposite aspects can not be ignored and weigh even more. Firstly, globalisation may lead the disadvantaged companies to the situation of bankruptcy. An example about the experience of companies in Galax ,which is described in the ” Hard Truth about Helping The Losers from Globalisation ” (The Economics, 2007), is here suitable for a valid support. In order to gain better development, a firm is much difficult to avoid the fierce competition in an open and liberal economic environment. However, such environment and conditions indeed do not avail for those weaker companies with low level of technology and productivity, low quality of the staff and more backward level of management, which are easier eliminated from the market than companies with a powerful and abundant strength. Secondly, in the open globe, corporations have to bear higher risk inthe process of merger, acquisition or engaging normal commercial activities. Before the implementation of a commercial decision, accurate expectation of earnings and reasonable capital amount of investment should be projected according to the repeated investigation to the target market, unless it could be suffered from several types of of risks, such as credit risk, market risk and capital risk, which may cause imponderable damages to the company, even may lead to the elimination from local market. Therefore, a company should weigh the advantages and disadvantages of globalisation, especially the drawbacks, and avoid risks as much as possible.In terms of the impacts to a country, cultural elements from all corners of the world are integrated into its culture to enrich the original cultural content. It can be seen from the worldspread of festivals. Numerous Western festivals such as the Christmas, the Valentine’s Day , the April Fool’s Day are celebrated annually in China, meanwhile, Chinese traditional festivals like the Spring Festival, the Mid-autumn Day are accepted by other nations. What’s more, in the economic aspect, globalisation makes it convenient to exchange advanced financial information and accelerate capital flow. Lewis considered that globalisation provides a chance to less developed countries to improve the situations through an integration with the global economy. It was supported by Friedman, a Nobel laureate, who believed that greater wealth creation was led to by economic freedom. In addition, so-called organisations like the IMF, theWorld Trade Organisation and the World Bank always serve amount of infrastructure fund to countries that get into financial difficulties ( Lewis,2005). Altogether, globalisation produces cultural and economic benefits to a country.However, disadvantages are ineluctable. From the viewpoint of Klein (1999), globalisation will lead to ‘homogenization’. Ritzer (2004) asserted that big brands can create destruction of traditional culture of a country through the procedure of globalisation. The young will distinct alien culture with traditional culture and will be gradually diluted about some traditional opinions which are accepted by three generations or even more. Therefore, many cultural elements will disappeared as the development of cultural globalisation. Additionally, when it comes to the economic angle, the increased liquidity of capital brings about an unstable financial order, which will easily detonate economic crisis. Spreading through the economic ties, the crisis will evolve into a major crisis in a scope of globe. From other aspects, just as Lewis stressed, If the IMF and the World Bank were shut down, the developing countries would even worse duing to the diminished flow of resources served by these two international organizations. As presented above, globalisation can impact a country on the culture and economy to a significant extent.In conclusion, this essay has demonstrated that the disadvantages of globalisation impact on a firm and a nation far more significant thanadvantages. Indeed, to a firm, globalisation provides a series of chances to expand market to multinational area and gain more profits, however, the company should also bear the risks brought by it. When considering to a country, evidence suggests that a richer content of culture can be formed through integration of global cultural elements, while it may detonate cultural homogenization. Furthermore, in economic aspect, although globalisation can service a convenience to acquire advanced information and the chance of improvement, it may cause the risk of global economic crisis and a potencial possibility of being even worse. Despite the fact that drawbacks are more than benefits, firms and nations can find an appropriate way to make the most of the advantages and to avoid disadvantages as possible.ReferencesThe Economist print edition, 18th Jan 2007, ‘Hard Truths about Helping The Losers From Globalis ation’.Lewis W (2005),Globalisation: Good or Bad? Guardian Unlimited.Klein N (2005), No Logo, HarperCollins Publishers, London.Ritzer G (2004), The McDonaldization of society. Revised New Century Edition.Pine Forge Press, California.Tim H (2009), The Economist Guide to Management Ideas and Gurus.。
