What Is Globalisation and How Does It Affect the Multinational Essay - 1

What Is Globalisation and How Does It Affect the Multinational Enterprises - Essay Example This research will begin with the definition of globalization as the process through which isolated regions of the world become more integrated as a result of increased international cooperation in the exchange of knowledge, cultural values, political ideas, and economics. This process has largely been made possible by technology advances with special attention to the internet. Indeed, as the world has become more connected to the internet, people across the world have increasingly become interdependent in such activities as political policy, travel, communications, and trade However, while contemporary assumptions are that globalization is a fairly modern phenomenon as a result of ICT inventions, it has actually been taking place for hundreds of years. For instance, the Silk Road that spanned from East Asia into Europe is early evidence of international trade and cultural exchange, as is the invention of railroads and steamships. What has made globalization especially salient in the last one hundred years is that the invention of road vehicles and airplanes has dramatically eased international trade and exchange? Moreover, digital communication tools invented in the late 20th century have made globalization in the modern sense a reality. One organization that owes much of its success to globalization is Wal-Mart, which has been able to take advantage of cheaper imports, cheaper labor, and improved logistics and ICT capabilities in previously isolated regions like East Asia to gain a comparative advantage. The term globalization is derived from the verb â€Å"globalize† that encompasses the aspect of international influence and interdependence between diverse economic and social systems. The concept of globalization has several definitions and interpretations, which range from such diverse disciplines as anthropology, philosophy, sociology, and business. According to Dehesa, there are four fundamental aspects from a business perspective that define the c oncept, which are trade and transactions, movement and migration of people, investment and capital movements, and knowledge dissemination. Globalization, in essence, is a natural phenomenon that enables for synergy in both markets and cultures through the process of specialization.