Effect of Globalization on Poor Countries

Effect of Globalization on Poor Countries This paper discusses the development of the globalization process, the meaning of the term globalization and the impacts of globalization and global companies on the world economy, global community, inequality and different living standards in the wealthier and poorer countries. It is pointed out that globalization has both, negative and positive aspects, but it certainly brings a significant change. The developed countries and global companies are carriers of the globalization process which are using very well the global conditions. With the development of information and communication technologies the world has become a single system where a connection between two subjects in different parts of the world is made within a few minutes. An eternal theme during the development of globalization is the discussion of problems of economic inequality and poverty. The question is what are the concrete effects of globalization causes? Who are the losers and who are the winners in this process ? In response to this question there are two opinions. Someone think that if merging the developed and underdeveloped countries follows an increase of inequality and dislocation of production, while others argue that the winners actually are both sides. Is it a game with two winners or one loser? Globalization means a dynamical, political and cultural process that has enabled the rapid development in the fields of transport and communication, which is often driven by the desire of large corporations to conquer new markets. Globalization is a controversial process. There are three types of globalization: Economic globalization means primarily the creation and regulation of a single world market with free competition and encourages development. Opponents on the other hand argue that the large multinational corporations have been using already-earned capital to prevent the creation of competitors with whom to share the market. Political globalization is closely associated with economic globalization. The existence of a single world market reduces the ability of national governments to directly stimulate the development of their economies by setting rules that give priority to our own companies. City decision-making is transferred from state to international institutions, thereby reducing the ability of people to direct election of representatives of government influence in their own development. Cultural globalization is the encounter of diverse world cultures and customs. The flow of goods, capital and people across national borders brings with it the flow of habits, customs and cultures. This process of different people often provokes a different reaction. Some consider the impact of a new culture positive development that enriches the existing culture, while others in the new culture they see a threat to established values and rules (http://bs.wikipedia.org/wiki/Globalizacija). Globalization is preceded by an incredibly rapid technological development. There was a combination of information technology and communications. Computer technology, satellite communications, optical cables and mobile phones allow a quick and cheap communication that has, among other things; result in geographic branching of companies. Plants are moved around the world depending on the benefits of natural resources and cheap labour. In most developed countries are formed knowledge industries, while manufacturing plants are located in less developed and underdeveloped countries. Economic globalization has an appropriate infrastructure in which are basic liberalization and free market trade within countries and between them. It is not an ordinary interdependent economy, but it is a system based on strict rules that provide free production and exchange in the world. The globalization process is independent of our will, because it is conditioned by objective laws. Society should be aware of the great advantages and bad effects of globalization. One of the most serious consequences of globalization is certainly excessive increase in economic inequality and poverty. Below I will try to explain more clearly the relationship between globalization, global companies and the differences in living standards. The Affect of Globalization and Global Companies on Poor Countries Globalization creates certain problems for even the most developed countries, because the modern technology leads to a reduction in employment and related social problems and the multinational companies (MNC) often give priority to their own interests over the interests of other countries. Through globalization, developed countries have getting privileges, leadership, profit, control, influence and power, conquer new markets, and expand their sphere of influence and looking preferably for new investments. Developed countries and the multinational companies impose globalization and its rules to developing countries like a long development vision, using the fact that for development of these countries foreign investments are needed and this are offering only developed countries with their rigorous criteria. Who owns the capital of the world? According to Anderson and Cavanagh, among the largest 100 economies in the world, 51 are multinational corporations (MNCs), whereas only 49 are countries. The analysis is based on a comparison of the corporate sales of MNCs and the GDPs of the countries. The study further shows that, out of the 200 largest economies of the world, 144 are MNCs. The combined sales of the top 200 corporations are bigger than the combined economies of all the countries of the world, minus the largest 10. The income of MNCs is 18 times higher than the combined annual income of the 1.2 billion people of poor countries (24 percent of the total world population). The study has found that the growth of sales of top 200 corporations is faster than overall global economic activity. Between 1983 and 1999, their profits grew by 362 percent whereas their combined sales grew from 25 percent to 27.5 percent of the world GDP. Most of these MNCs belong to the rich countries; therefor e, it is natural that MNCs and their respective countries should safeguard their mutual economic, political, and cultural interests under the cloak of globalization. Economies are the catalysts of the globalization process, and they are represented by MNCs and transnational corporations (TNCs), which maintain the highest stakes and stand to gain the maximum benefits. Having poor economic infrastructure and little capital, developing countries very easily agree to host MNCs. At times, their weak regulatory positions are subsequently exploited by MNCs. MNCs either buy out the local companies of the host countries or push them out of the markets by offering cheaper and better quality goods for some time. MNCs carry out research to identify human needs, problems and lifestyles and come up with multidimensional responses, including the development of products and services. What causes them to conduct such researches and produce goods accordingly? Is it for the good of public or maximizin g their own profits? This puts the whole process of globalization in question as its generally proclaimed goal is the good of common people. Before examining what happens when MNCs enter host societies to achieve their commercial objectives, it is pertinent to discuss the problems and strengths of the host societies. (Anderson and Cavanagh. 2000. quoted in Rahman K., n.d.). Unlike developed countries that use the positive effects of globalization, undeveloped countries are not able to actively participate in the expansion of world trade and to attract a greater volume of private foreign investment, resulting in lagging behind the development of global economy. Structural weaknesses and problems of external and internal debt of these countries is a key constraint to economic growth. This limitation is related to the lack of the market, underdeveloped technology and private sector, entrepreneurial and marketing skills, as well as non-transparency of legal and regulatory framework. Globalization is imposing further restrictions in terms of the need to adapt the new competitive international environment to these countries. Globalization and Living Standards It is quite difficult to measure the living standards in the global economy; it is even more difficult to measure these standards in relation to globalization. The living standards are different from country to country because of their national economic structure. Standards of living in the global economy are devised of income, health and education. These broad terms are indexed by GDP per capita, literacy, infant mortality, GNP per head, secondary and primary education, doctors per 100.000 people and so on. Living standards differ because of national economic structure high-income countries are based on agricultural production. They differ within the population and labour market factors with high-income countries have a population with a high level of education and relatively high rates of production. Institutional factors stable government and policies allows for better living standards, economic growth influenced by culture, access to capital and ease of establishing a business, global relations and levels of foreign debt (http://www.exampleessays.com/viewpaper/53146.html). However, the standards of living, or quality of life is not simply a measure of the level of economic growth or change in real GDP, but it is a measure that takes into account the literary levels, education, health care, technological changes and mortality rates. An example of a quality of life indicator is the Human Development Index (HDI) which measures changes in those factors as a result of globalization. Over the last few decades, the HDI of the worlds richest countries have increased as a result of globalization, where growth and development has been attributed to these economies through willingness to embrace market liberalization. However, the HDI of the poorer nations have grown at a slower rate to the richer nations which, as some economists put in, shows that globalization is another word for the continual plundering of the poorer and weaker nations by the rich and powerful economies. It has been strongly argued that the benefits of competition go only to those who can com pete, and poor countries have to negotiate on unequal terms (http://www.bukisa.com/articles/92708_impact-of-globalization-on-economic-growthm-quality-of-life-external-stability-on-market-economies). There have been two important trends since about 1980. The first of these has been acceleration in economic growth in many of the worlds most populous countries particularly the Asian countries of China, India, Bangladesh and Vietnam. These countries, which were among the worlds poorest as recently as 1980, have all grown faster than the rich countries, in per capita terms, in the period since then. Largely as a consequence of this improved economic performance in these populous Asian countries, the poorest one-fifth of countries in 1980 had a population-weighted annual per capita growth rate of 4 per cent from 1980 to 1977, compared with 1.7 per cent for the richest fifth of countries over the same period. The second, and much more problematic, trend has been the continued poor economic performance of most of the countries in Africa, with some countries experiencing declines in average living standards, not only relative to the rich countries, but even in absolute terms. These two opposing trends have had important implications for global poverty and inequality over the past decades (Gruen D. and OBrien T., 2002.). As everyone knows, much of the world has been left aside. Most of Africa and Latin America, Russia, all of the Middle East, and large parts of Asia.  Moreover, for many countries, the degree of participation in the global economy varies by region.   In fact, globalization is not global but is mainly limited to northern latitudes.   Linda Weiss points out that as of 1991, 81% of the world stock of foreign direct investment was in high-wage countries of the north: mainly the United States, followed by the United Kingdom, Germany, and Canada (Kenneth N. Waltz. 1999 quoted in Sidani K. 2003.). The concept of globalization is not really global but based on the very few dominant and powerful countries, and especially the United States.   Many globalizers believe that America had stumbled into the right way of controlling the global market.   Globalization is not such a happy thought for most poor countries, because they are being used by the richer countries.   The rich countries buy the raw material from the poor countries, and then sell their finished products for relatively high prices, thus increasing the financial gap between themselves and the poor countries (Sidani K., 2003).   Conclusion Globalization is a process that has started and that cannot be stopped anymore. It has brought an increasing interaction among the participants of international trade, global networking of the financial markets and growing power of multinational corporations. Today, globalization is seen as a world without borders. Everything begins to be reflected globally. So, today are global products, fashion, consumers and citizens. Globalization can be understood as a stage in the development of the civilization. Globalization often confronts with some anti-globalists all over the world. They have common responses to globalization; regionalism, nationalism and patriotism in order to preserve national and cultural particularities and to some extend protect their economic independence. The strengths and power of the Multinational Corporations are more and more visible in the globalization process. Many countries where these corporations operate and especially those small and poor are just having affiliates of the Multinational Companies because of the enormous financial resources of these corporations. The GDP (Gross National Product) of these countries cannot be even remotely compared with the profit that realizes the MNC. Multinational corporations, however, spread their influence and power in all countries, none can escape. Investment decisions are taken by corporations at global level, transferring capital or resources from one country to another, impacting (un)employment of millions of people and level of economic activity in some countries. What brings the globalization, global businesses and economies and the developing world in the future remains uncertain.

Beto Cuevas :: essays research papers

There are many rock bands in the world. One of them is the Spanish singing band of La Ley (The Law). Luis Alberto Cuevas Olmedo or "Beto" as everybody knows him, is the vocalist and the image of the band. Thanks to Beto’s hard work, dedication, and education, La Ley has exported their music all over Latin America and the United States. To begin, Alberto Cuevas was born in Santiago de Chile, the capital of Chile, September the 12th, 1967. When he was four years old, he moved to live in Venezuela. Then, he went to Canada, and France. When he was twenty years old. he went back to Chile. Once in Chile, he joined the rock band that his friend Andres Bobe was putting together. From that moment on, he started to work hard for the band. He made his debut in1989 when the band’s first CD came out. The CD was called "Desiertos"("Deserts") from which only 500 copies where made. Then, two years later, they recorded a new CD called "Doble Opuesto." In 1994, the band suffered a tragedy. the founder of the band Andres Bobe got killed in a car accident. In his memory, Beto wrote five songs about Bobe. In 1996, they signed a record deal with WEA Latina. They took advantage of this opportunity and recorded a new album, which was called "Invisible." La Ley used the five songs Beto wrote i n Bobe’s name. This album, with songs like "Dia Cero" "El Duelo," and Cielo Market" was a hit in Mexico, Latin America, Spain, and the United Sates. Thanks to Beto’s hard work, La Ley has got to the point where it is right now. Besides singing, Beto also designs the drawings and designs they use on their CDs. He does this because he studied graphic design in a university in France. That is where he learned to speak perfect French. He also speaks perfect English. He learned to speak English when he was in Canada. While he was living in Canada, before joining the band, he took music classes. He learned to sing, play both the acoustic and electric guitar.

Information Systems Essay

Information systems are the foundation for conducting business today. In many industries, survival and even existence without extensive use of IT is inconceivable, and IT plays a critical role in increasing productivity. Although information technology has become more of a commodity, when coupled with complementary changes in organization and management, it can provide the foundation for new products, services, and ways of conducting business that provide firms with a strategic advantage. 3. What exactly is an information system? How does it work? What are its management, organization and technology components? * Define an information system and describe the activities it performs. An information system is a set of interrelated components that work together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization. In addition to supporting decision making, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products. * List and describe the organizational, management, and technology dimensions of information systems. Organization: The organization dimension of information systems involves issues such as the organization’s hierarchy, functional specialties, business processes, culture, and political interest groups. Management: The management dimension of information systems involves setting organizational strategies, allocating human and financial resources, creating new products and services and re-creating the organization if necessary. Technology: The technology dimension consists of computer hardware, software, data management technology, and networking/telecommunications technology. * Distinguish between data and information and between information systems literacy and computer literacy. Information literacy: is the ability to find, learn and use information. It doesn’t rely on what you can remember but what you can locate and use. The process of learning in an information literate environment involves being able to find the information rather than memorize it. Computer literacy: is the ability to use the computer. This is an understanding of how to use productivity software on the computer such as word processing, excel, and powerpoint presentation researchs. It is also having knowlege on how to use the internet, collabaration tools, and technology. 4. What are complementary assets? Why are complementary assets essential for ensuring that information systems provide genuine value for an organization? * Define complementary assets and describe their relationship to information technology. Complementary assets are those assets required to derive value from a primary investment. Firms must rely on supportive values, structures, and behavior patterns to obtain a greater value from their IT investments. Value must be added through complementary assets such as new business processes, management behavior, organizational culture, and training. * Describe the complementary social, managerial, and organizational assets required to optimize returns from information technology investments. Organizational assets: * Supportive culture that values efficiency and effectiveness * Appropriate business model * Efficient business processes * Decentralized authority Managerial assets: * Strong senior management support for technology investment and change * Incentives for management innovation * Teamwork and collaborative work environments Social assets: * The Internet and telecommunications infrastructure * IT-enriched educational programs raising labor force computer literacy * Standards (both government and private sector) Chapter 2 1. What are business processes? How are they related to information systems? * Define business processes and describe the role they play in organizations. Â  A business process is a logically related set of activities that define how specific business tasks are performed. Business processes are the ways in which organizations coordinate and organize work activities, information, and knowledge to produce their valuable products or services. How well a business performs depends on how well its business processes are designed and coordinated. Well-designed business processes can be a source of competitive strength for a company if it can use the processes to innovate or perform better than its rivals. Conversely, poorly designed or executed business processes can be a liability if they are based on outdated ways of working and impede responsiveness or efficiency. * Describe the relationship between information systems and business processes. Information systems automate manual business processes and make an organization more efficient. Data and information are available to a wider range of decision-makers more quickly when information systems are used to change the flow of information. Tasks can be performed simultaneously rather than sequentially, speeding up the completion of business processes. Information systems can also drive new business models that perhaps wouldn’t be possible without the technology. 3. How do systems that link the enterprise improve organizational performance? * Explain how enterprise applications improve organizational performance. Â  An organization operates in an ever-increasing competitive and global environment. The successful organization focuses on the efficient execution of its processes, customer service, and speed to market. Enterprise applications provide an organization with a consolidated view of its operations across different functions, levels, and business units. Enterprise applications allow an organization to efficiently exchange information among its functional areas, business units, suppliers, and customers. * Define enterprise systems, supply chain management systems, customer relationship management systems, and knowledge management systems and describe their business benefits. Enterprise systems integrate the key business processes of an organization into a single central data repository. This makes it possible for information that was previously fragmented in different systems to be shared across the firm and for different parts of the business to work more closely together. Business benefits include: * Information flows seamlessly throughout an organization, improving coordination, efficiency, and decision making. * Gives companies the flexibility to respond rapidly to customer requests while producing and stocking only that inventory necessary to fulfill existing orders. * Increases customer satisfaction by improving product shipments, minimizing costs, and improving a firm’s performance. * Improves decision making by improving the quality of information for all levels of management. That leads to better analyses of overall business performance, more accurate sales and production forecasts, and higher profitability. In short, supply chain management systems help businesses better manage relationships with their suppliers. Objective of SCM: Get the right amount of products from the companies’ source to their point of consumption with the least amount of time and with the lowest cost. SCM provides information to help suppliers, purchasing firms, distributors, and logistics companies share information about orders, production, inventory levels, and delivery of products and services so that they can source, produce, and deliver goods and services efficiently. SCM helps organizations achieve great efficiencies by automating parts of these processes or by helping organizations rethink and streamline these processes. SCM is important to a business because through its efficiency it can coordinate, schedule, and control the delivery of products and services to customers. Business benefits include: * Decide when and what to produce, store, and move * Rapidly communicate orders * Track the status of orders * Check inventory availability and monitor inventory levels * Reduce inventory, transportation, and warehousing costs * Track shipments * Plan production based on actual customer demand * Rapidly communicate changes in product design Customer relationship management systems: enable a business to better manage its relationships with existing and potential customers. With the growth of the Web, potential customers can easily comparison shop for retail and wholesale goods and even raw materials, so treating customers better has become very important. Business benefits include: * CRM systems provide information to coordinate all the business processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention. This information helps firms identify, attract, and retain the most profitable customers; provide better service to existing customers; and increase sales. * CRM systems consolidate customer data from multiple sources and provide analytical tools for answering questions such as: What is the value of a particular customer to the firm over his/her lifetime? * CRM tools integrate a business’s customer-related processes and consolidate customer information from multiple communication channels, giving the customer a consolidated view of the company. * Detailed and accurate knowledge of customers and their preferences help firms increase the effectiveness of their marketing campaigns and provide higher-quality customer service and support. Knowledge management systems : enable organizations to better manage processes for capturing and applying knowledge and expertise. These systems collect all relevant knowledge and experience in the firm, and make it available wherever and whenever it is needed to improve business processes and management decisions. They also link the firm to external sources of knowledge. Business benefits include: * KMS support processes for acquiring, storing, distributing, and applying knowledge, as well as processes for creating new knowledge and integrating it into the organization. * KMS include enterprise-wide systems for managing and distributing documents, graphics, and other digital knowledge objects; systems for creating corporate knowledge directories of employees with special areas of expertise; office systems for distributing knowledge and information; and knowledge work systems to facilitate knowledge creation. * KMS use intelligent techniques that codify knowledge and experience for use by other members of the organization and tools for knowledge discovery that recognize patterns and important relationships in large pools of data. * Explain how intranets and extranets help firms integrate information and business processes. Â  Because intranets and extranets share the same technology and software platforms as the Internet, they are easy and inexpensive ways for companies to increase integration and expedite the flow of information within the company (intranets alone) and with customers and suppliers (extranets). They provide ways to distribute information and store corporate policies, programs, and data. Both types of nets can be customized by users and provide a single point of access to information from several different systems. 5. What is the role of the information systems function in a business? * Describe how the information systems function supports a business. Â  The information systems departments is the formal organizational unit responsible for information technology services. The information systems department is responsible for maintaining the hardware, software, data storage, and networks that comprise the firm’s IT infrastructure. Compare the roles played by programmers, systems analysts, information systems managers, the chief information officer (CIO), chief security officer (CSO), and chief knowledge officer (CKO). * Programmers are highly trained technical specialists who write the software instructions for computers. * Systems analysts constitute the principal liaisons between the information systems groups and the rest of the organization. The systems analyst’s job is to translate business problems and requirements into information requirements and systems. * Information systems managers lead teams of programmers and analysts, project managers, physical facility managers, telecommunications mangers, or database specialists. * Chief information officer (CIO) is a senior manager who oversees the use of information technology in the firm. * Chief security officer (CSO) is responsible for information systems security in the firm and has the principle responsibility for enforcing the firm’s information security policy. The CSO is responsible for educating and training users and IS specialists about security, keeping management aware of security threats and breakdowns, and maintaining the tools and policies chosen to implement security. * Chief knowledge officer (CKO) helps design programs and systems to find new sources of knowledge or to make better use of existing knowledge in organizational and management processes.

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