How Interconnectedness as a Major Globalisation Theme Works in Today's World Economy and Assess Their Impact on International Business Environment
Although in its simplistic sense globalization refers to the widening, deepening and speeding up of global interconnectedness, such a definition begs further elaboration. … Globalization can be located on a continuum with the local, national and regional. At one end of the continuum lie social and economic relations and networks which are organized on a local and/or national basis; at the other end lie social and economic relations and networks which crystallize on the wider scale of regional and global interactions.
The nature of globalisation in the 21st century – fueled by post-war economic booms, sweeping global movements of liberalisation and freedom, and the rise of dominant multinational corporations – led to the ever increasing connected world and economy. Businesses have responded to each wave of globalisation by harnessing the technological developments presented to refine their strategy and increase growth. The next era will bring new innovation with artificial intelligence, which will present new opportunities to grow and the ongoing challenge of how to evolve and adapt. Globalisation describes the ways in which “national and regional economies, societies, and cultures have become integrated through the global network of trade, communication, immigration and transportation”. The beginnings of globalisation are still debated, with some sources placing it as long ago as the bronze age, fully 4,000 years ago. Others pin the date more reasonably in the period of global exploration kicked off by Christopher Columbus’ discovery of America in 1592 – this marked the birth of the first global trade networks, pioneered by European powers.5 This is generally considered the first wave of globalisation, in which business and trade crossed seas, and it lasted for more than a century. By the nineteenth century, the movement of globalisation entered a new phase; the advent of technologies such as the steam engine facilitated international trade further, quickening the pace and scope at which business could be conducted. A dearth of major wars (after the end of the Napoleonic wars in 1815) aided rapid growth during this period, which was characterised by, among other things, vast waves of immigrants expanding across the globe – more than 20 million people left Europe for other shores between 1850 and 1913.
Deterritorialization exists or manifests itself in businesses that people do in different continents with the help of electronic commerce. For example, television enables people in different parts of the world to observe how terrible wars waged far away from their homes impact the world. Moreover increased technology inventions enable people to hold seminars by use of video conferencing apparatus whereby those involved are located in different geographical positions. The internet also enables people to instantaneously communicate with each other despite the long distance that separates the two. By examining the current interconnectedness of social growth which has surpassed the political and geographical limits recent theorists have able been to put globalization into a clear perspective. According to their views, globalization majorly concerns the way in which distant forces and events impact regional and local endeavours (Vallas, Finlay & Wharton, 188). An encyclopaedia is an example of detteritorialized social space given that it permits exchange of ideas. The book can be used by other students in different geographical areas to access the same knowledge and ideas in a particular topic. The impact and the degree of activities taking place may also vary; environmental events can either have a huge impact or less impact on different events in particular areas. This means that the degree of interconnectedness across different frontiers can be easily predicted and regulated (Vallas, Finlay, & Wharton, 190).
In any event, the increase of international trade over the years has been a result of the globalization process. Thus, both consumers and companies can now choose from a wider range of products and services. Also, globalization refers to the interdependence between countries arising from the integration of different aspects of the economy, such as trade. International trade can stimulate economic growth of countries that are now so interconnected. Currently, globalization cannot be ignored by businesses, due to the opportunities offered by foreign markets.
Vallas, Steven, Finlay, William, & Wharton Amy. Sociology of work: Structures and Inequalities. Oxford: Oxford University Press, 2009.