Aveneu Park, Starling, Australia

Introduction simply, it is a process that refers to

Introduction

In this
essay I will analyse how globalisation has impacted me as an individual and a
country in which I have an interest in. I will also put forward arguments to
include at least two of the external environmental factors and the impact these
factors have had on the country I have chosen. The country that I have decided
to choose is the United Arab Emirates. The reason why I have chosen this
country is because I am interested to see what impact globalisation has had on
UAE and how it has become such a wealthy country. Another reason why I have
chosen this country Is because I also have a personal interest in this country
as I have visited UAE several times and have family members living there.

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What
is globalisation?

The process
of globalisation can be defined as something that involves the creation of
linkages or interconnections between nations. It is usually understood as a
process in which barriers (physical, political, economic, cultural) separating
different regions of the world are reduced or removed, thereby stimulating
exchanges in goods, services, money, and people. (Hamilton
and Webster, 2015). However, Brooks and Weatherstone (2000) described
globalisation as a phenomenon, a process, a state or a concept. It has
evolved partly due to the trend for increasing international trade across
national boundaries and the conduct of business activities in more than one
country. Put simply, it is a process that refers to the growth of
inter-dependencies between national markets and industries on a worldwide scale
(Brooks and Weatherston, 2000).

 

 

 

 

 

 

 

 

Globalisation impact on businesses

As the years
have passed globalisation became more than just a simple way of doing business
or running financial markets – it became a process. Centuries earlier, in a
similar manner, the techniques of industrial manufacturing led to the changes
associated with the process of industrialisation, as former country dwellers
migrated to the cramped but booming industrial cities to tend the new machines (Jeffery, 2017). Furthermore, today the process of globalisation
is playing a key role in the way businesses are operated and is considered very
important mainly because of the opportunities it provides for businesses who
choose to use this method. Some of the opportunities include access to mass
markets therefore increased sales, access to resources and access to finance
and tax savings. On the other hand, with this process there are also several
threats involved which businesses will need to be aware of. This could include
increased competition, more demanding consumers or becoming vulnerable to
events in foreign economies and markets that are outside the control of the
business (Hamilton and Webster, 2015). This can
be a major problem for a business especially if they are heavily dependent on
foreign markets. One major implication to businesses regarding globalisation Is
that it is important to know how to manage culturally diverse, cross cultural,
and geographically dispersed organisations. This is because the management of
modern corporations Is more than accounting and finance, business strategy or
site location. Globalisation requires businesses to understand the behaviour of
people in organisations. (Francesco and Gold, 2008)

 

 

 

 

 

 

 

 

 

 

How
has globalisation affected me?

The process
of globalisation has not just had a positive or a negative impact on businesses,
but it has also affected consumers. Due to the process of globalisation wider
choices, improved quality of products, lower prices and overall a better
standard of living is available to consumers. For example, globalisation has
affected me and my daily life because of the products and services that I use
that are only available to me due to globalisation. For example, Colgate,
headquartered in New York City, is one of the company that provides a product
that I use every day, which is toothpaste. This company has over 60
manufacturing and research facilities globally. It also operates in over 75
countries and sells products in over 200 countries and territories (Colgate, 2017). Approximately 75 percent of sales of
Colgate’s products come from operations outside of the United States (Investor. Colgate, 2017). The fact that such a high percentage
of their sales come from outside of the United States highlights how
globalisation has helped this company be more successful as well as helping
consumers around the world by having access to the products produced by them.
Next, Adidas is another company, whose products I use, that has grown due to
using the process of globalisation. Starting off in a small town in Bavaria,
Germany, and Adidas now is employing more than 60,000 people in over 160
countries. (Adidas, 2017). Adidas is often regarded as
the biggest sport store in the world and using the method of globalisation has
had a decisive influence on this. This is because it has helped the business be
more dynamic and competitive.

Below is figure 1 highlighting how the number of employees
for Adidas has grown over the years (Statista 2016, 2017).

Figure 1

Source – Statista

Moving on, the process of globalisation has not just impacted
me because of the products that have become available to be more but also
through other means such as technology. Being from a family that has family
members living in several different countries, globalisation has helped in
making things easier to check international news sites and see what is
happening in other countries where my family members are living. Furthermore,
globalisation has also helped me to chat to friends and family that are living
outside the country, England. This highlight the fact that technology has
played a key role in helping globalisation reach its full potential. Migration is
another thing that has had a large impact on my life and the globalisation has
played a key role in this because due to globalisation migration between
developing countries and developed countries has risen (Hamilton and Webster,
2015). The process of
globalisation helped my parents to move to England, the country which I live
in, many years back which is why it has had an impact on me. Overall, there are
many ways of how globalisation has affected me including those that are
mentioned above as well as other ways such as education.

Globalisation impact on UAE

The country
that I have chosen to write about is the United Arab Emirates (UAE). UAE is a
federation of seven states that has grown from a quiet backwater to one of
Middle East’s most important economic centres (BBC News,
2017). Since the discovery of oil in the UAE nearly 60 years ago, the country
has undergone a profound transformation from an impoverished region of small
desert principalities to a modern state with a high standard of living. The
government has increased spending on job creation and infrastructure expansion
and is opening up utilities to greater private sector involvement (Activpayroll, 2017). The
country’s free trade zones – offering 100% foreign ownership and zero taxes –
are helping to attract foreign investors (Cia.gov, 2017).

United Arab Emirates is greatly influenced by globalisation
and technology is one of the factors for this. The country consists mostly of
young generation which is very tech savvy, resulting in companies around the
UAE to leverage technology (Oxford Business Group, 2017). Due to the
wealth it has, UAE has been able to purchase new equipment that helps in technological
development. Globalisation and technology has allowed and provided a number of
benefits for UAE. For example with the rise of technology has come the ability
to develop and increase networks of individuals throughout the world (Internationalrelations.org,
2017). The UAE market is cooperating with modern trends and applying new
knowledge. Compliance advance ideas in market helps in getting efficient work
in sectors like production, management and entrepreneurship. However, financial
institutions such as banks may find it difficult to use the internet to sell
their services in foreign markets because countries may lay down different
solvency requirements (Hamilton and Webster, 2015). Also, many of the world’s
poorest countries do not have access to basic technologies and are excluded
from these benefits which can cause tensions between the rich and poor
countries (tutor2u, 2017).

Continuing, as a country the United Arab Emirates has a few
different political standings that effect its standings. The UAE has healthy
trade relations with many countries across the globe. This has enabled them to
make some important deals with countries. For example, in 2017, UAE and India
agreed a deal regarding emergency oil reserve. This deal will allow UAE to
construct more investment deals in the future (The National, 2017). However,
UAE has not always had healthy political relations with everyone. Conflicts
between the 7 federations regarding oil reserves resulted in UAE’s global peace
ranking (The National, 2017). This resulted in complications for
UAE when trading with other countries.

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