Сборник трудов международной научной конференции молодых ученых



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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



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