Globalization; Research

Definition:

Globalization:

The process by which businesses or other organizations develop international influence or start operating on an international scale.

The worldwide movement toward economic, financial, trade and communications integration.
 
 The problem comes with the word integration.. when international brands take over the local market in a way that the local market becomes almost non-existent.

“Political parties and nongovernmental organizations (NGOs) have drawn bull’s-eyes on transnational companies because they’re the most visible and vulnerable symbols of globalization’s side effects, such as exploitative wages, pollution, and cultural imperialism. The opposition to U.S. foreign policy that arose after the superpower went to war in Afghanistan and Iraq has further shaken companies, because in 2002, according to global brand consultancy Inter-brand, 62 of the world’s 100 most valuable global brands were American. Naturally, the instinctive reaction of most transnational companies has been to try to fly below the radar.”

- Holt, D., & Quelch, J. (September 2004). How Global Brands Compete. Harvard Business Review.

“The very success of global brands, and U.S. brands in particular, also fueled a growing resentment of perceived American cultural imperialism and a backlash against U.S. brands, particularly in Western Europe and the Muslim world. Levi’s, for instance, has seen its overseas sales plummet in the last three years as European consumers have turned to homegrown brands sold through local chains such as Italy’s Diesel and Spain’s Zara. In Germany, activist Web sites urge consumers to boycott 250 British and American products and suggest local alternatives…

As sales slumped, global-brand owners started to listen more closely to their local business partners about how to adapt product attributes and advertising messages to local tastes. They began delegating more authority over product development and marketing to local managers. And they started developing and promoting local executives to take over from expatriates.”

-Quelch, J. (August 2003). The Return of the Global Brand. Harvard Business Review.

“Together with such an approach, the international community must address the push and pull factors created by globalization, specifically, how international trade agreements and global economic policies make migrant workers vulnerable to exploitation.

In the context of worker rights, significant push factors for migration include poverty level incomes, low wages in rural areas, and lack of employment opportunities in poor countries, coupled with higher wages and greater job opportunities in urban areas and rich nations. Despite its general economic benefits, globalization has created an ever-widening wealth gap between countries, and rural and urban areas within countries. Indeed, it is the lack of viable economic opportunities at home that often pushes workers to migrate in search of better options. Global economic policies, initiated through market liberalization and the structural adjustment policies (SAPs) of the World Bank and International Monetary Fund, are major causes of the gap in income and employment opportunities, displacing workers from their local livelihoods.

Neha, M. The Push & Pull of Globalization: How the Global Economy Makes Migrant Workers Vulnerable to Exploitation. American Center for International Labor Solidarity.

“Chinese and American researchers estimated the amount and ultimate destination of smog-forming gases and particulates that Chinese factories pumped out in their production of export goods. Up to a quarter of the sulfate pollution in the western United States wafted over from those factories. Their emissions add a day of substandard air in the Los Angeles area every year.

And those are just the fraction of Chinese emissions associated with world trade. Nations closer to China suffer much more. The health and well-being of many people in many countries, not just those choking on thick, brown air in Beijing, depend on China developing into not merely a great economic power but also one that manages its massive impact on the planet.”

- The Globalization of Pollution, The Washington Post, January 27 2014

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