Abstract
Above all, let's start by explaining what globalization is. Many definitions exist some are too minimalist, others too general. The term used to describe the current state of the global economy has become a fashionable word. We retain that: “Globalization is a process (or set of processes) which embodies a transformation in the spatial organization of social relations and transactions – assessed in terms of their extensity, intensity, velocity and impact – generating transcontinental or interregional flows and networks of activity, interaction, and the exercise of power.” David Held et al. That definition is both broad and fairly accurate.
Globalization is not a state but a process. Process that is manifested by increased interdependence between the various continents and therefore all countries of the world. Effectively, never the world produced so much wealth. Never technologies were developed as well as today. Never exchanges between the countries were as well as now. Globalization, striking phenomenon of the last thirty years, brought by progress in transports and telecommunications, has intensified the economic, financial, cultural relations between human societies. Firstly, we see the main characteristics and forces of globalization, both economic and non-economic. Then we will discuss about the challenges and opportunities that globalization brings to multinational businesses.
Extract
[...] Access to financial markets more dynamic or loans at lower interest rates is now easier because of globalization. * The global access and permanent to the information and to the knowledge can only be a benefit for businesses. III/ Conclusion Globalization is the result of a long process that began in the 16th century with the discoveries, accelerated from the 1950/60s, to reach full maturity in the 1980/90s. Globalization is a process of harmonization at the global level, offers opportunities for some and threatening others. [...]
[...] We retain that: "Globalization is . a process (or set of processes) which embodies a transformation in the spatial organization of social relations and transactions - assessed in terms of their extensity, intensity, velocity and impact - generating transcontinental or interregional flows and networks of activity, interaction, and the exercise of power." David Held et al. That definition is both broad and fairly accurate. Globalization is not a state but a process. Process that is manifested by increased interdependence between the various continents and therefore all countries of the world. [...]
[...] Firstly, we see the main characteristics and forces of globalization, both economic and non-economic. Then we will discuss about the challenges and opportunities that globalization brings to multinational businesses. The main characteristics and forces of globalization The globalization arose from a combination of technological, social, cultural, political and economic factors. In the first time, we will discuss the economic factors and we will focus on non-economic factors thereafter. Globalization is characterized by economic factors, that is to say the multiplication of trade, the increase of investments and financial markets, the acceleration of the flow of technology and non-economic factors which are the standardization of consumer tastes and the loss of national sovereignty that is reflected in a growing uniformity of social values. [...]
[...] Informing buyers and sellers worldwide, the information technology involved in globalizing the demand and consequently the competition. The globalization of competition affects both the price and the quality of products and services. Some companies are progressing in markets where demand is slowly changing and prices are a factor more important than product diversification. To face global competition, companies practice standardization and subcontract abroad, achieve strategic alliances to spread the high costs of research and development, advertise globally, merge and form acquisitions. [...]
[...] We judge that the annual rate of growth of the world trade, which was 3.5% before the First World War (1870-1913), reached 5.8% after the Second World War (1950-1990). Note that the inter-war period was a break of the world trade. The share of trade in gross domestic product (GDP) is a frequently used indicator of globalization. For advocates of globalization, the trade expansion is an absolute advantage. However, "let it go" and free trade may be harmful to the national level. The rapid growth of trade can make countries vulnerable to external impacts and competition that is not necessarily desirable. [...]
