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Because of globalization the economies of the world are being increasingly integrated,
example mobile phones and internet have brought people closer. The world is becoming a smaller
place. Work can be outsourced to any part of the world that has an internet connection because of
improvements in traffic infrastructure one is able to reach one's destination in a short time.
Globalization can also be defined as an ongoing process by which regional economies,
societies and cultures have become integrated through a globe-spanning network of communication
and trade. The process of globalization includes a number of factors which are rapid technology
developments that make global communications possible, political developments such as the fall of
communism, and transportation developments that make traveling faster and more frequent. These
produce greater development opportunities for companies with the opening up of additional
markets, allow greater customer harmonization as a result of the increase in shared cultural values,
and provide a superior competitive position with lower operating costs in other countries and access
to new raw materials, resources, and investment opportunities.
Through globalization, people from different countries are provided with jobs opportunities
within the global. It has created the concept of outsourcing. Developed countries prefer to provide
work to developing countries where costs are cheap. Work such as customer support, software
development, accounting, marketing and insurance effects of globalization on business management
in developing countries.
"I know that globalization has also created many negative effects, but I believe it's always
better to look to the future with optimism and hope. Tomorrow, hopefully, we will be able to
minimize or even eradicate the evil forces that give globalization a bad name. Thus we will be able
to move forward with peace and harmony" [1].
As far as poverty reduction is concerned, globalization played a role in poverty reduction in
developing countries. In deed most developed countries experienced reduction in poverty in the
proportion of their living below the poverty line, including fast developing countries like China,
India, Vietnam. While other countries like Sub-Saharan Africa registered an opposite trend [2].
Are given to developing countries like India. Therefore the country that is given the work
enjoys by getting jobs. It has given an opportunity to invest in the emerging markets and tap up the
talent which is available there. In developing countries, there is often a lack of capital which hinders
the growth of domestic companies and hence, employment. In such cases, due to global nature of
the businesses, people of developing countries too can obtain gainful employment opportunities [3].
This is a powerful force that drives the world toward a converging commonality. It has
proletarianized communication, transport, and travel. People from different places everywhere
wants all the things they have heard about, seen, or experienced through technology. Organizations
through its managements can obtain knowledge from different places in the world that can be used
in the organization.
Television and medias played a big role in influencing the perception of the world, from a
relatively small national unity and reality, into a global market and international concerns. As
multinationals establish subsidiaries in new locations, they transfer know how from the parent to the
local operation. Knowledge flows from one unit to another as a whole organization benefits from
development activity. One of the ways that organizations use in knowledge transfer is the
movement of personnel, which takes place within multinationals. This build up a bank of
knowledge about working in different situations with people from different cultures and this
represents a stock of knowledge that could be developed and used to benefit the organization [4].
Globalization from the point of view has positive effects as well as negative effects. It has
increased the access of higher education example universities and reducing the knowledge gap in
developing countries, it equally has negative aspects which can seriously threaten universities in
those countries. From point of view it has brought more positive effects to developing countries
through increasing access to higher learning institutions. Today you can move in the search of the
best educational facilities in the world including developing countries without any hindrance. This
is due to increased output from secondary schools, greater participation of women in higher
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education, a growing private sector demand for graduates, and the exorbitant costs of acquiring
education in foreign countries, especially those in the nort [5].
Despite having negative effects of globalization, it has a good side too. One of the most
significant effect it has brought to developing countries is Trade. Before people used to exchange
goods for goods or services for services but now people can trade goods for money. This is mostly
through International trade whereby people exports and imports goods within countries.
Globalization has led to reduction of costs in trade within the globe. It has led to reduction of tax of
importation of goods.
According to economic theory, foreign trade is in principle, beneficial to any country
engaged. The international division of labor allocates the resources more efficient whereby it
increases the economic welfare of all countries engaged in foreign trade in long run.
Foreign investment is a direct result of globalization. Foreign investment is always
welcomed as it provides resources, capital and technology to a country that will support economic
development of the host country. This improves employment as in direct and indirectly. Increases
exports to a country and thereby improves the current account and therefore will help to the
repayment of foreign debt. This however has some criticisms for leading to too much foreign
control [6].
Developing countries can use general or specific industrial and trade policies to be more or
less welcoming to foreign direct investments, capital and foreign tourist services. They can directly
and indirectly shape their participation in the economic activities in the globe [7].
Negative effects of globalization on business management in developing countries.
Globalization is a tool that benefits all sections of mankind. We cannot ignore the negative effects it
has in developing world.
Globalization is a blame to world's unemployment situation though it brought some jobs
opportunities. Despite the fact that it brought jobs opportunities to the global but it is still a blame to
the current situation. "It 's true that global economic integration and increased travel have resulted
in increased competitiveness at the national and enterprise levels, forcing producers to find ways to
cut costs, improve efficiency, and raise productivity" [8].
"The most important factor to determine the level of employment during 1980-2000 was
national or regional macroeconomic policies which were implemented and sustained. In addition
those countries with liberal macroeconomic reforms, pursued politics promoting flexible labor
markets and employment practices, decentralized industrial relations systems, and judicious
enforcement of labor. On the other hand, countries with employment laws, regulations, and policies
experienced higher level of employment because they were not able to attract and retain as many
new jobs"[9].
For example ,Indonesia faced unemployment and poverty that grew to levels not
experienced in two decades, health conditions worsened, and the natural environment degraded [9].
Fast foods chain is growing very fast. But some of the most rapid growth is occurring in the
developing countries, where it's real changing the way people eat. "Kentucky Fried Chicken(KFC)
is the largest, fastest growing, and highest potential units" [10].
Most people prefer to buy fast foods because it's cheap and quick. This replaces home
cooked fare enjoyed with family and friends. Traditional diets and recipes are yielding to sodas,
burgers, and other highly processed and standardized items that have a lot of fat, sugar, and salt
resulting a global epidemic of diabetes, obesity, and other chronic diseases. Meanwhile, fast food
producers require farmers to raise uniform fields of crops and herds of livestock for easy
processing, eliminating agricultural diversity.
Globalization has led to the spread of western culture and influence at the expense of local
culture in developing countries like Africa. Most people now in developing countries cop what
people in developed countries do. So, its like they ignore their own culture and practice western
culture [11]. For example dressing styles and eating habits, language. All these can affect
management in one way or another example it can cause misunderstandings because of language
barrier. Average tariff rates continue to be high in many developing countries, including some that