Globalisation

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Master: management control and information system

Module: Business English

Case study under the topic

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Realized by:                                                                                 Framed by:

Mehdi Achahboun                                                                                     Pr: BOUCHOUR

Fatimazahra Fernouchi

Ahmed Abou El moueheb

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1. Globalization:

1. Introduction:

   Globalization is the term used to describe the way countries are becoming more interconnected both economically and culturally.

Globalization is an international process driven by trade, investment, technology and finance.

This process has effects on the environment, on culture, on political systems, on economic development, prosperity and human physical well-being in societies around the world.

 Globalization is not new though for thousands of year’s people later corporations have been buying from selling to each other in lands at great distances, on such examples is the thin Silk Road across central Asia that connected China, and Europe during the Middle Ages but what exactly drives.

Globalization over the past 20 years there have been significant development in both communications and transport technologies, the introduction of specialized bulk carriers and container ships has helped to reduce the cost of transport and greatly increase the volume of world trade, recent developments in communications technology, especially the development of the internet and email enable people, anywhere on earth to have access to distribute vast amounts of information.

   The questions now are:

 What is the definition of globalization? What is it?

Does it have a history? (When did it begin? Does it come in waves of phases?)

The dimensions of the phenomenon (economic, social, and what else)?

1. Chapitre1: notion of globalization.

2.      Definition:

  Trough the oxford dictionary, globalization is the process by which businesses other organizations develop international, influence or start operating on an international scale.

Globalization is spread of products, technology, information, and jobs across national borders and cultures. In economic terms, it describes an interdepends of nations around the globe fostered

Globalization in short point to the whole effort towards making the world global community as a one village-goods that were only found in western countries can now found across the globe.

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.

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1. History:

  When did the globalization begin?

      The social scientists (sociologists of globalization) see it as a very recent phenomenon, something that might go back to the period following the major economic crisis of 1973/1974, perhaps to 1943.

Pre 1500:

Andre Gunder Frunk in his know reorient (1998) argued that globalization was there well before 1500, because of the single world economy before 1500, and the trade of silk roads and later European trade in Asia, also because of the centrality of china.

In the 16th century:

Denis Flynn and Arturo Giraldez claims that and the trade of silk roads and later European trade in Asia, also because of the centrality of china. (Manila to Acapulco; Importance of the pacific; Importance of silver).

In the early 19th century:

Christopher baily claims that globalization started with the collapse of 18th century regimes

This the defines as “modern globalization” and sees it as a process based on colonialism, imperialism and the concept of free trade.

In the great time of 1820 to 1913:

Williamson and O’Rourke indicate how the period from 1820 to 1870 in particular was: the era of “free trade”, the liberalization of the state, and it was increased trade in commodities.

The 1914s to 1945s: De-globalization

The interwar period saw an economic protectionism and autarky, an economic and monetary instability, the stagnation of the economies, moribund empires, the confrontation between US and Soviet Union, and the lack of innovation.

All of those points have an action on the increase of globalization.

Between 1945 and 2013: contemporary globalization

The key of globalization after 1945 was action of institution and governments and of markets after 1973:

• Liberal economic policies and regimes
• Growth of world trade and financial transactions
• and easier access to information
• Performance of services remotely
• New business organizations
• A high degree of convergence in Consumer culture.

1. Characteristics of globalization:

    The characteristics of globalization are represented in:

First place we have liberalization, which is the freedom of the industrialist to establish industry, trade or commerce either in his country or abroad. Free exchange of capital, goods, service and technologies between countries.

In the second place, we have free trade: Free trade between countries, absence of excessive governmental control over trade.

The third characteristic is globalization of economic activities:

Control of economic activities by domestic market and international market, and a coordination of national economy and world economy.

For the fourth place we have Connectivity:

 Localities being connected with the world by breaking national boundaries, forging of links between societies, and between one country and another through international transmission of knowledge, literature, technology, culture and information.

Moreover, the fifth characteristic that is Borderless globe:

Breaking of national barriers and creation of inter-connectedness the ideal of “borderless globe” articulated by Kenichi Ohmae.

As a sixth characteristic it represents in a compositive process:

Integration of nation-states across the world by common economic, commercial, political, cultural and technological ties. Which allows a creation of a new world order with no national boundaries.

The last one is a multi-dimensional process that is divided in 4 other characteristic that are:

  Economically, it means opening up of national market, free trade and commerce among nations, and integration of national economies with the world economy.

  Politically, means limited powers and functions of state, more rights and freedoms granted to the individual and empowerment of private sector.

  Culturally, means exchange of cultural values between societies and between nations. In last, ideologically, it means the spread of liberalism and capitalism.

1.   Causes of globalization:

    There is some of the causes of globalization

The first cause is that technology has improved and this has had many implications, for example; we can communicate faster, this means increased amounts of knowledge can be shared, this means that we can do business and trade more easily.

International financial markets are there, this means that money particularly, hot money and capital is able to shift between countries, by the click of a button, and this encourage borrowing, lending, buying, trading orders between countries, another implication technology.

Also we can see that former communist countries such as Russia have followed the free market ideology, and they have become more open to trade and trade liberalization has occurred, and this has helped to form one integrated international trade system, over the past 50 years, there has been a reduction in trade barriers which is as a result of the world trade organization encouraging countries to do so, and also there’s been a push for trade lock’s as Europeans Union and NAFTA ASEAN to have formed, and this is encouraged trade by getting rid of the trade barriers between those sets of countries.

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