Ethics Of Globalization

9 Pages 2136 Words

against currency fluctuations and other risks. “Capital now moves with startling speed around the world. Each day over $1 trillion is traded in a global foreign exchange market that never closes. Technological advances in computers and telecommunications are paving the way for a new information-based economy,” states Joan E. Spero, who works under Secretary of State for Economic, Business and Agricultural Affairs. This is further proof that globalization can be seen as the new era of business opportunity. (Brecher 18)
Economic globalization changes spatial dimensions of Multinational Corporations and creates a need for more flexible production of marketing systems and new forms of organization. The driving force of the marketplace is competition. For example, sales go to the company who offers the lowest price. This alone is not a harmful process as prices are lower and there is improved efficiency in production. (Dunning)
American politicians are against free trade and globalization because it results in increased power for the international economy and lessened power of the sovereign state. Firms trying to position themselves as global players face problems such as the cost of building a simultaneous presence in several product areas and foreign markets; therefore they use the simple solution of cutting back in other areas. They must also be able to manage cultural difference and be able to carry out effective cross-cultural communication. Global skills must be an integral part of an enterprise; these skills must be integrated throughout all operations of the company. Managements handling of diversity will be the most significant factor affecting the corporation’s success in this global marketplace. Whether a company is concerned about the supervisors of minority employees, world trade, joint ventures or global economic cooperation, culture will have a great impact on the relationships and the operations. Globalization has de...