Effects of Globalization on Business

Effects of Globalization on Business

Globalization has been an important trend in the current global business environment as the global world has been turned into a village. This has affected the operations of business in the global market affecting trade agreements, tariffs and market regulation (Myatt, 2006, p. 34). The increased market liberalization as a result of increased globalization has resulted to decreased trade practices in the global market has increased the flow of goods and services. Market liberalization has led to reduction and dismantling of tariff and nontariff barriers of trade. There have increased changes of the economic conditions with increased globalization. This paper will seek to evaluate the effects of globalization in the global business, in terms of tariffs and trade regulation. Globalization has also increased economic interdependence, hence the increased need of market liberalization(Aydinli & Rosenau, 2006 p. 38).

Research Objectives

i. This research study will seek to evaluate effect of globalization in the global trade practices.

ii. Evaluation of the effect of globalization on trade tariffs.

iii. An evaluation of the effects of globalization on national security.

Research Question

i. What are the effects of globalization on global trade practices?

ii. What are the effects of globalization on the global trade tariffs?

iii. What are the effects of globalization on global security issues in different countries?

Significance of the Study

An evaluation of the effects of globalization on the global trade will provide important insights, on how the current trends in global trade affect the tariffs of the global business. In addition, the study will provide an insight of the current trend of global business practices in regards tariffs and trade liberalization.

Chapter Two

Books

Aydinli, E., & Rosenau, J 2006, Globalization, Security, And the Nation State: Paradigms in

Transition. Chicago: SUNY Press .pp. 30-62

In their book, Aydinli and Rosenau focuses on the impact that globalization has on security and the spillover of this phenomenon in business. In studying the impact of globalization, this book is useful in giving insights to the complex relationship that persist between globalization and security and between security and business. The book identifies security as an important ingredient in doing business and as an emerging issue in the global world.

Brown, W., & Hogendorn, J 2000, International Economics: In the Age of Globalization. Toronto: University of Toronto Press .pp. 21-39.

This book majorly deals with important concepts in international trade. In this regard, globalization has been identified as an inevitable concept in international trade discussions. The book is of major interest to this study in that it captures the concept of tariff, which is of major interest to this study, in a detailed manner.

Goldin, I., & Reinert, K 2007, Globalization for Development: Trade, Finance, Aid, Migration, and Policy. Washington DC: World Bank Publications .pp. 71-87.

In their book, Goldin and Reinert focus on how globalization can promote development through trade. The authors conducted a complex economic analysis and sought to explain how trade, finance, migration and different macroeconomic policies are interrelated. The book is specifically relevant in that it focuses on current issues in globalization that cannot be overlooked.

Johnson, D 2009, International Business: Themes and Issues in the Modern Global Economy. New York: Taylor & Francis . pp. 32-65.

In his book, Johnson discusses in a detailed way, the various emerging issues in international business, in the context of globalization. The book is an important resource in the foregoing study in that the author has managed to model different issues arising from globalization into economic models. The major strength in this book is that it discusses various concepts in a simplified way that does not demand the reader to have a wide scope in economics.

Journal Articles

Doh, J. P., & Teegen, H. (2003). Globalization and NGOs: Transforming business, government,

and society. Westport, Conn: Praeger.

Keywords

Money laundering-explained as the act of trying to sanitize money earned from illegal business transactions

Global Village-This phrase is used to denote the fact that with the current technological progress, communication messages can transverse the world almost instantly.

Market liberalization-used to denote the removal of trade barriers as to permit free entry of foreign products into the local markets

Homann, K., Koslowski, P., & Luetge, C. (2007). Globalisation and business ethics. Aldershot,

England: Ashgate.

Keywords

Outsourcing-it is the importation of essential services, courtesy of globalization.

Tariff- a tax that government collects from imported products.

Non-tariff barriers- these are barriers to trade other than taxes. They include quotas.

Rollinat, R. (January 01, 1997). Perverse Effects of Globalization in Today’s Latin American

Finance. Routledge Studies in International Business and the World Economy, 6, 36-49.

Keywords

Competition- used to denote the rivalry that exists between firms, especially those producing similar products or close substitutes

Multinational Corporation (MNC)-It is a large modern organization, with operations in many countries

Trade regulation-it is a phrase used to explain the various policies by governments that seeks to control international/free trade.

Vukovic%u030C, I., & Vizjak, A. (January 01, 2000). Global economic relations and countries in

transition. Nas%u030Ce Gospodarstvo, 46, 548-558.

Keywords

Absolute advantage-a country has an absolute advantage over another country, in production of a certain product, if it can produce that product at a less cost than the other country.

Relative advantage- a country is said to possess relative advantage in production of a particular product over another country, if the opportunity cost of producing that good is lower in that country than in the other country

Economic Interdependence- the phrase is used to explain the trade pattern that persist between nations.

Chapter Three

Methodology

Research Design

The research process involves process and procedures, which are imperative in ensuring a credible research process. Research design encompasses all procedures involved in formation of the sample as well as a collection of the data and data analysis. However, in this study most of the data employed will be secondary data from secondary sources such as the internet and journals. It will include an evaluation of the data used by international organizations such as World Bank and international monetary funds (IMF). The data collected will be analyzed on the basis of research methods of data analyses such as regression analysis. This will assist in evaluation of the existing relationships between various variables. An analysis of the theoretical frame work of the effects of globalization on the global trade is given below.

Globalization has various effects on the business practices and global tariffs. The increase in globalization has increased market liberalization policies as economies pursue more trade free policies to facilitate achievement of a comparative advantage. However, the increase in globalization has also led to increased insecurity issues, such as terrorism.