IntroductionIn thisessay I will analyse how globalisation has impacted me as an individual and acountry in which I have an interest in. I will also put forward arguments toinclude at least two of the external environmental factors and the impact thesefactors have had on the country I have chosen. The country that I have decidedto choose is the United Arab Emirates.
The reason why I have chosen thiscountry is because I am interested to see what impact globalisation has had onUAE and how it has become such a wealthy country. Another reason why I havechosen this country Is because I also have a personal interest in this countryas I have visited UAE several times and have family members living there. Whatis globalisation?The processof globalisation can be defined as something that involves the creation oflinkages or interconnections between nations. It is usually understood as aprocess in which barriers (physical, political, economic, cultural) separatingdifferent regions of the world are reduced or removed, thereby stimulatingexchanges in goods, services, money, and people. (Hamiltonand Webster, 2015).
However, Brooks and Weatherstone (2000) describedglobalisation as a phenomenon, a process, a state or a concept. It hasevolved partly due to the trend for increasing international trade acrossnational boundaries and the conduct of business activities in more than onecountry. Put simply, it is a process that refers to the growth ofinter-dependencies between national markets and industries on a worldwide scale(Brooks and Weatherston, 2000). Globalisation impact on businessesAs the yearshave passed globalisation became more than just a simple way of doing businessor running financial markets – it became a process. Centuries earlier, in asimilar manner, the techniques of industrial manufacturing led to the changesassociated with the process of industrialisation, as former country dwellersmigrated to the cramped but booming industrial cities to tend the new machines (Jeffery, 2017). Furthermore, today the process of globalisationis playing a key role in the way businesses are operated and is considered veryimportant mainly because of the opportunities it provides for businesses whochoose to use this method. Some of the opportunities include access to massmarkets therefore increased sales, access to resources and access to financeand tax savings. On the other hand, with this process there are also severalthreats involved which businesses will need to be aware of.
This could includeincreased competition, more demanding consumers or becoming vulnerable toevents in foreign economies and markets that are outside the control of thebusiness (Hamilton and Webster, 2015). This canbe a major problem for a business especially if they are heavily dependent onforeign markets. One major implication to businesses regarding globalisation Isthat it is important to know how to manage culturally diverse, cross cultural,and geographically dispersed organisations.
This is because the management ofmodern corporations Is more than accounting and finance, business strategy orsite location. Globalisation requires businesses to understand the behaviour ofpeople in organisations. (Francesco and Gold, 2008) Howhas globalisation affected me?The processof 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 widerchoices, improved quality of products, lower prices and overall a betterstandard of living is available to consumers. For example, globalisation hasaffected me and my daily life because of the products and services that I usethat are only available to me due to globalisation. For example, Colgate,headquartered in New York City, is one of the company that provides a productthat I use every day, which is toothpaste.
This company has over 60manufacturing and research facilities globally. It also operates in over 75countries and sells products in over 200 countries and territories (Colgate, 2017). Approximately 75 percent of sales ofColgate’s products come from operations outside of the United States (Investor.
Colgate, 2017). The fact that such a high percentageof their sales come from outside of the United States highlights howglobalisation has helped this company be more successful as well as helpingconsumers 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 tousing 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 160countries. (Adidas, 2017). Adidas is often regarded asthe biggest sport store in the world and using the method of globalisation hashad a decisive influence on this. This is because it has helped the business bemore dynamic and competitive. Below is figure 1 highlighting how the number of employeesfor Adidas has grown over the years (Statista 2016, 2017).
Figure 1 Source – Statista Moving on, the process of globalisation has not just impactedme because of the products that have become available to be more but alsothrough other means such as technology. Being from a family that has familymembers living in several different countries, globalisation has helped inmaking things easier to check international news sites and see what ishappening in other countries where my family members are living. Furthermore,globalisation has also helped me to chat to friends and family that are livingoutside the country, England. This highlight the fact that technology hasplayed a key role in helping globalisation reach its full potential. Migration isanother thing that has had a large impact on my life and the globalisation hasplayed a key role in this because due to globalisation migration betweendeveloping countries and developed countries has risen (Hamilton and Webster,2015).
The process ofglobalisation helped my parents to move to England, the country which I livein, many years back which is why it has had an impact on me. Overall, there aremany ways of how globalisation has affected me including those that arementioned above as well as other ways such as education. Globalisation impact on UAEThe countrythat I have chosen to write about is the United Arab Emirates (UAE). UAE is afederation of seven states that has grown from a quiet backwater to one ofMiddle East’s most important economic centres (BBC News,2017). Since the discovery of oil in the UAE nearly 60 years ago, the countryhas undergone a profound transformation from an impoverished region of smalldesert principalities to a modern state with a high standard of living. Thegovernment has increased spending on job creation and infrastructure expansionand is opening up utilities to greater private sector involvement (Activpayroll, 2017).
Thecountry’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 globalisationand technology is one of the factors for this. The country consists mostly ofyoung generation which is very tech savvy, resulting in companies around theUAE to leverage technology (Oxford Business Group, 2017). Due to thewealth it has, UAE has been able to purchase new equipment that helps in technologicaldevelopment.
Globalisation and technology has allowed and provided a number ofbenefits for UAE. For example with the rise of technology has come the abilityto develop and increase networks of individuals throughout the world (Internationalrelations.org,2017). The UAE market is cooperating with modern trends and applying newknowledge. Compliance advance ideas in market helps in getting efficient workin sectors like production, management and entrepreneurship.
However, financialinstitutions such as banks may find it difficult to use the internet to selltheir services in foreign markets because countries may lay down differentsolvency requirements (Hamilton and Webster, 2015). Also, many of the world’spoorest countries do not have access to basic technologies and are excludedfrom these benefits which can cause tensions between the rich and poorcountries (tutor2u, 2017).Continuing, as a country the United Arab Emirates has a fewdifferent political standings that effect its standings. The UAE has healthytrade relations with many countries across the globe. This has enabled them tomake some important deals with countries. For example, in 2017, UAE and Indiaagreed a deal regarding emergency oil reserve.
This deal will allow UAE toconstruct more investment deals in the future (The National, 2017). However,UAE has not always had healthy political relations with everyone. Conflictsbetween the 7 federations regarding oil reserves resulted in UAE’s global peaceranking (The National, 2017). This resulted in complications forUAE when trading with other countries.