Globalization is a concept in the economy that represents integration of markets. This is a process where ideas, products and world views are interchanged. There are also aspects of culture that are exchanged as a result of globalization. This is made to ensure diversity and help in economic growth. Globalization help countries come up with markets where they can sell their products. It is a market that has been made closer to people. This involves even coming up with electronic commerce where many countries can sell their products and ideas. Different scholars have different views concerning globalization.
According to Kumar & Steenkamp, there have been dramatic changes experienced in economic center of gravity since 1500 A.D. Emerging markets have developed as a result of globalization. These markets began the challenge of the existing market since 1978. This was enhanced by a Chinese leader Deng Xiaoping when he started a program of economic reforms (Kiechel et al, 2013). This took time for other markets to join the emerging market. Globalization has had an impact in economic development. Developing countries have contributed greatly in international trade. These countries have collaborated with developed markets in exchange of products, ideas and culture. This includes the exchange of know-how. For instance, china has invested in world class engineering capabilities. Chinese are involved in building of infrastructures in other countries.
Park, Zhou & Ungson assert that globalization leads to high profits all over the world. Globalization involves merging with other firms and ensuring a well established technology. A firm in the global market is able to spot opportunities that are available in established markets. These opportunities can arise as a result of market liberalization, privatization and shifts in consumer demand. Globalization also helps create a market where all customers’ needs are available. This is because there is diversification of products and ideas from different markets (Kiechel et al, 2013). For instance, china and India have benefited from global trade. Global companies also ensure that their operations are excellent. They spend a lot of time ensuring that their operations are efficient and flexible. For example, in Brazil a company known as Magnesita developed an integrated supply chain that involved mining, manufacturing and distribution of products. Global trade help companies become efficient and as a result gain a high market share.
According to Schroender in his book, Starting up Rising: The entrepreneurial revolution remaking the Middle East, globalization has contributed to growth in many countries. The Arab countries have enjoyed growth that other countries such as Russia. Middle East has millions of people whose income has grown over the years. Middle East has engaged in improvisation, problem solving and global playing that lead to economic development (Kiechel et al, 2013). As improvisers, the county is able to adapt proven models from other markets and build on them to become successful. For example Altibbi.com was developed from WebMD. Problem solvers are firms that adapt logical and regional challenges that were once directed to the government to solve them. Being global players is important to multinational companies because they will learn about competitive changes in the market. This will help such companies produced product and services that meet requirements in the global market.
In conclusion, globalization is an essential aspect of economic development. Emerging markets have contributed largely to global trade. This increases the share of profits even when one economy is experiencing poor growth. Globalization also ensures efficient and flexible operations in the market. Global players are also able to solve problems and adapt technologies from other economies.
Kiechel W. et al (2013) Strategy +business. Best Business Books. Retrieved June, 2013 from