The effects of Globalisation in the economy

According to Globalization (investorwords, 2011) asserts is the process of increasing connectivity and interdependence of world markets and businesses. This process has accelerated dramatically over the past two decades, technological advances make it easier for people to travel, communicate and do business internationally. Two of the main drivers of recent developments in telecommunications infrastructure and the Internet boom. In general, economies become more closely linked to other economies, greater opportunities, but also more competition. Thus, globalization becomes a feature increasingly common in the global economy, a powerful pro-globalization and anti-globalization lobby emerged. The pro-globalization argues that globalization offers many opportunities to increase almost everyone, and increased competition is good because it makes workers more efficient production. Both organizations pro-globalization more important are the World Trade Organization and the World Economic Forum. The World Trade Organization is a government-wide entity created to develop a set of rules governing global trade and capital flows through the process of consensus among members, and to supervise its members to ensure that standards are met. The World Economic Forum, a private foundation, has no power of decision, but has great importance as it has been effective as a networking forum for reaching a large number of companies worldwide, the government and Nonprofit leaders gain. The anti-globalization group argues that some groups of people who are deprived in terms of resources that are not currently able to work to increase the competitive pressure that took place to enable their economies are more connected to the world . Important anti-globalization organizations include environmental groups like Friends of the Earth and Greenpeace, the international humanitarian organizations like Oxfam, Third World government agencies such as the business organizations of the G-77, and unions, whose competitiveness is threatened by globalization, such as textiles in the United States and European farm lobby movements and work in Australia and the United States Trade

Impact of Globalization

Under globalization and Starbucks (content partner Yahoo, 2008) state that globalization has shown a significant impact on the discourse of the organization. Using this as a basis for research, the impact of globalization on the organization Starbucks is reviewed, with recommendations for policy changes. The recommendations are based on a general philosophy of improving the strategic development of the organization.

Globalization and Starbucks

Globalization has impacted almost all organizations currently in operation. Even when organizations decide to limit their activities and operations to a specific geographic region, globalization becomes a part of the operations of new technologies and international attention on the company’s customers. Ultimately, few organizations are able to escape the impact of globalization.

Given the importance of globalization in the organization, there is a clear impetus to examine how this will impact on business operations in both the short and long term. Using this as basis for research, this research examines the impact that globalization can have on the organization of Starbucks. Through a careful examination of how globalization has impacted this organization, they can make recommendations for significant policy change that will improve the operations of the organization.

Starbucks-An overview

To begin this research, it is useful to first consider a review of the Starbucks organization and critical issues currently affecting their development. Reviewing the history of this organization, Lyon (2005) reports that Starbucks originated in Seattle, Washington as a retailer of gourmet coffee. In an effort to advance the success of the organization, leaders have chosen an aggressive business model that allow them to penetrate and saturate local markets. The business model used by the organization was new, key analysts to link the organization’s success to its aggressive growth strategy. As noted by Kaplan and Wozniak (1999) “seems to want a Starbucks at every corner.”

Besides the new business model developed by the organization, Lustgarten (2004) reports that the organization has also developed a unique corporate culture. According to research “Starbucks was the first U.S. company to provide comprehensive health benefits and stock options to each employee, including more than 65% were part-time at the moment. Starbucks has the lowest wear of all retailers national. “In addition to providing employees a great benefit, Starbucks also offers its employees comprehensive training that enables the organization to promote their products through its employees.

The issues that the organization has encountered in international development are not the only problems facing the organization. It was reported that Starbucks is facing the moral decadence and erosion of employees among its store managers and its army of baristas happy once. “In recent years, the organization has had to manage costs by reducing wages and benefits for employees. This included a refusal to pay overtime mandatory. As a direct result, many employees perceive their job like any other fast food feel. “

Despite these significant problems, Starbucks maintains a strong financial position. The organization has managed to eliminate most of its foreign debt. In addition, the organization has cultivated a strong brand image that does not spend a considerable amount of money on marketing and advertising. Instead, the organization relies on word of mouth about the quality of their products to serve the main form of marketing. This measure will save the organization a sum of money.

Impact of Technology and Policy Change

The development of Starbucks as an international organization as one that represents the negative realities of globalization, is clearly linked to the growing interconnectedness of the world. Starbucks began as a company in the United States, focusing first 8 years of growth in the saturated domestic market. The proliferation of Starbucks in the United States was followed by visitors from other countries and through the media organization on the Internet. The business model was created by Starbucks, while a great success in the United States has become a model of aggression and globalization that are feared in foreign countries. This, combined with the information that the company took advantage of coffee producers in developing countries has in many cases, creates a negative image for the organization of Starbucks.

When placed in this perspective it becomes obvious that the instrument is connected to the international community as a whole is the specific instrument that has a negative impact on international development organization of Starbucks. While the Internet provides Starbucks with the ability to reach customers around the world, but also provides critical of the critical information necessary to conduct the protest against the organization. In this spirit, it is clear that the organization must consider how they can best use the Internet to your advantage to promote a positive image of the brand to allow increased penetration of the organization on the international market.

Proposed Change Policy

Because the Internet is a major source of information on the organization of Starbucks, the company must participate in an extensive advertising campaign on the Internet. Although this will increase marketing costs for the organization, the company could focus its marketing efforts toward the cultivation of a more international image of the organization. Today, Starbucks has created an all American who was despised by many foreign customers. Develop a brand image as an international organization should reduce negative perceptions and improve organizational capacity to penetrate foreign markets. Ubiquity in branding is essential for operations Starbucks’ international.

In addition to launching an advertising campaign online, the agency must also use the Internet to identify the major foreign companies with which they could co-brand Starbucks. Internet search will allow Starbucks to effectively identify organizations that are large enough to use a model of e-commerce. Developing new marketing campaigns that allow co-branding of its products, Starbucks could increase awareness of its brands in markets that were not exposed to the organization. As the penetration of small increases in foreign markets, it can also help develop the brand image of the organization as an international rather than American, society. As such, the two policy changes recommended supporting each other

The global production networks

According to Global Production Network (University of Manchester, 2011) states that to what extent the EU, East Asia and Eastern Europe is linked increasingly interconnected economic relations, manifested primarily through complex production networks in East Asia and EU companies. The work will focus on the links of production and distribution that EU companies have been created in Asia and Eastern Europe and East Asia Enterprise were established in the EU and Eastern Europe. A particular concern for the implications of these networks for national and local development.

Networks are studied through case studies in three sectors: electronics, automotive and retail. Each of these sectors is very important both in Europe and East Asia, but in different ways. The working assumption is that production networks within each sector are very different depending on the specifics of the company and how different places are integrated into networks


Global production network (GPN). Production networks – in the connection of interlinked functions and operations through which goods and services are produced and distributed – have become both more complex organization and increasingly global in scope. These networks not only integrate into the corporate structures that blur the traditional boundaries of the organization through the development of various forms of relations of equality and non-participation, but also integrate national economies so that they have enormous implications for economic welfare. At the same time, the precise nature and articulation of these production networks centered on society, are deeply influenced by socio-political contexts within which they operate, produce and reproduce. The process is particularly complex because, if they are essentially specific territorial production networks themselves are not. “Cut” The limits of the state in many different forms, partly influenced by regulatory and non-regulatory barriers and socio-cultural, to create structures that are “broken land.” The geographical scale at which production networks are taking shape continues to grow and become more complex.

The key research questions to be investigated are:

• How production networks in the three priority sectors, both organizationally and geographically, both within and between the three regions?

• How the various EU economies, East Asia and Eastern Europe added to these production networks centered on the company?

• To what extent the economies of Eastern Europe considered alternative or complementary focus on direct investment of EU companies in East Asia?

• What are the implications of these processes (for example, as regards the expansion of employment opportunities, technology upgrading, skills development, value creation, competitiveness, etc.) for businesses and economies concerned?

• To what extent are national and local institutions capable of influencing the strategic development of production networks of companies?

This study is based on an important time when economic and political contexts of European business relations with East Asia – and vice versa – are moving to a variety of reasons: the consequences of the Asian economic crisis of the Is investment and competition, the imminent absorption of several Eastern European countries in the EU is trying to create an international forum – ASEM – to help negotiate EU-East Asia . While the current period is one of instability in trade relations between these regions, providing an opportune time to draw their own nature and value its importance for companies and economies in different places.

Global Marketplace

According to the global market place (USC Marshall, 2011) argues that the globalization of markets and competition: trade is increasingly global today. There are several reasons for this. One important reason is technological, because of improved transportation and communication possibilities of today, trade is now more convenient. Therefore, consumers and businesses now have access to the best products from different countries. Increasingly rapid technological life cycle is also increasing competition between countries as to who can produce the newest technology. In part to reflect these realities, countries in recent decades have increased measures to promote global trade through agreements such as the General Agreement on Tariffs and Trade, and professional organizations such as ‘World Trade Organization (WTO), Free Trade Agreement (NAFTA) and the European Union (EU).

Stages of the international commitment to an enterprise. There are several stages through which a society can be as involved is increasingly across borders. A purely national focus solely on its domestic market, has no current ambitions to expand abroad, and sees no significant threat of competition from abroad. This company may be able to get orders from abroad, who are either in the form of irritation or as “the icing on the cake.” As the company begins to export more, go to Step export, where he made little effort to market the product abroad, although a growing number of foreign orders are filled. In the international arena, as some countries’ markets are beginning to appear particularly attractive more orders for foreigners from there, the company may enter the country on an ad hoc basis, ie each country may be introduced sequentially, but with relatively little training and marketing efforts between countries. In the multi-stage efficiencies are pursued by standardization across a region (eg Central America, West Africa, or northern Europe). Finally, the world stage, care centers in the world market, with decisions to optimize product positioning in the markets, the country of origin is no longer the center of the product.

These stages represent points on a continuum from a purely national orientation to a real world problem companies may fall in between these discrete stages, and different parts of the company may have characteristics of several stages.

Some forces in international trade. Comparative advantage, discussed in detail in the notes of the economy, suggests that trade between countries is beneficial because these countries differ in their relative economic strengths, some have more advanced technology and some have lower costs . The International Product Life Cycle (PLC) suggests that countries differ in their time of application for various products. Products tend to be adopted more rapidly in the U.S. and Japan. The internalisation of transaction costs and refers to the fact that the development of certain projects on a massive scale, such as cars for the global market, can lead to significant cost must be spread over several countries

Competitors and Competitive Analysis

According to the competitive advantages (teenanalyst, 2009) states that investors often fall into the trap of the investigation that the quantitative factors to evaluate potential investments. However, it is important to remember that some action is also part of a business, so you must be interested in how society as a whole performs. Successful companies in all shapes and sizes, but tend to have one thing in common: they all have a significant competitive advantage. This advantage allows them to protect themselves from their competitors and stay for a long period of time.

The competitive advantages are very important because they ensure that the company earns superior returns by a longer period of time. By increasing the lifetime of a business, shareholder value is higher. The competitive advantages are not only a form. In addition, companies may have several competitive advantages, in fact, more the merrier. There are five areas where companies can succeed and ensure their long-term success: the development of market share, strong brand management, which benefits from network effects, which has certain trademarks and patents, profitable, and creating high switching costs.

Market shares of companies with a market share important to create a problem for competitors, as competitors must rely on “stealing” market share to competition, which can not only create business from scratch. After all, you want to create a coffee product, if you knew you were going to go head to head with giants like Starbucks? It is also ideal for society, which means that their products are well known and well received in the market. Market share can not be imposed, but if the industry has a significant profit potential for new entrants, the market share can be eroded.

Strong Brand Management

Having a strong brand can ensure long term success of the company and also allows companies to obtain health benefits because his brand allows them to charge a higher price. For example, analysts do not think Starbucks would succeed in higher prices for a product such as coffee. However, the company has been very successful, largely thanks to its strong brand management. Strong brands tend to create more sustainable competitive advantage.

The network effect network effect occurs when a product creates a user demand, which in turn improve the product. For example, eBay is a company that has network effects, to attract more sellers, which attracted more buyers, establishing a dominant market share. The net effect is fairly rare, but can be very lucrative when it occurs.

Trademarks and Patents Trademarks and Patents can be a source of competitive advantage for some businesses but not too common. Shuffle Master is an example – the company created automatically mixers used in many casinos. The company remains on top of technology and the Queen closely follows their patents to ensure that competition is not easy to enter the market. But society is more and more other area of your business: the creation of casino games and new casino licenses, allowing you to collect a huge check every month. These patents and trademarks have given a great perspective Shuffle Master

Geographies of labor

According to the geography of inequality in the labor market (informaworld, 2011) In recent years, the local labor market have attracted increasing attention of academic analysts and policy makers. There is awareness that there is no such thing as the national labor market, rather than a mixture of local and regional markets that differ in nature, performance and regulation. Geographies of inequality in the labor market refers to these multiple geographies of employment, unemployment, work and income, and its implications for public policy

Impact on Environment and Sustainability

According to globalization and the environment (Theodore Panayotou, 2011) argues that economic globalization affects the environment and sustainable development in a variety of ways and through multiple channels. Here we will treat (a) identify the key links between globalization and the environment, (b) identify the main issues addressed in the multilateral agreements on the economy in trade and finance that affect environmental sustainability And (c) discuss the priority issues of environmental policy in the multilateral economic environment and, consequently, identifying incentives implicit in trade policy measures and investments that affect the sustainability the environment. These articles were classified in the primary areas of globalization, trade liberalization, investment and finance, and dissemination of technology, including intellectual property rights.

In the case of the interface of trade and environment, examines the impact of these two elements, and the causal relationship between them. It also gives special attention to multilateral environmental agreements and their potential impact on trade. A section on integration of the effects of globalization and environmental policy and performance leads to questions of domestic and international policy and priority recommendations.

Globalization brings great benefits and potential risks. The challenge is to manage the globalization process in a way that promotes environmental sustainability and equitable human development. In short, the more integrated policy and business environment, economic growth is more sustainable and globalization can be harnessed to benefit the environment

Financial globalization

According to the cards business in India (BusinesmapsofIndia, 2011) in the field of creativity and culture, globalization is a word well known in recent years, but globalization has become a household word, literally since the beginning of 1990, when he began to financial globalization. During this period, trade barriers between nations broke, and the flow of investment and business between the countries engaged in.

Financial globalization is also defined as an amalgam of the national financial system of a particular country with international organizations and financial markets. The massive growth was noticed in the global economy over the past two years, and in the field of technology, especially in transport and communications has been a quiet revolution that led to the globalization of finance choices obvious. The International Monetary Fund (IMF) and World Bank are the two international financial institutions that were created to support global trade to continue growing financial globalization.

In the mid-1970s, emerging economies have little experience of financial flows between countries. The improvement rate in 1980 and 1990, while in 1997, reached its apogee. But then decreased rapidly due to economic disaster and financial capital flows from Asia and Russia and the world completely fell gradually. In contrast, in the 1990 financial globalization and inflation of capital significantly in developed countries to developing countries began arriving in 1973 and 2005, the rate of world trade have increased significantly. It continues to grow, and in 2005 the GDP of the world came to 42%.

Impact of financial globalization

Although not rich history of movements of capital cross-country, but the impact of financial globalization is certainly huge in the composition of domestic capital markets and international. The banking system was particularly upset and had to undergo de-intermediation.


Globalization has the approximate fair share and its effects: It throws open a number of challenges such as inequality between and within different nations, volatility in the explosion of financial market opened and there was no degradation the environmental situation. Another negative aspect of globalization is that the world most countries stayed away from light. Until the nineties, the process of globalization of the economy of India had been under surveillance by trade, investment and financial barriers. For this reason, the process of liberalization has taken the time to accelerate. The pace of globalization did not begin smoothly.

Also the economic integration of “globalization”has allowed the free cash flow of information, ideas, technologies, goods, services, capital, finance and people. This cross-border integration had different dimensions – cultural, social, political and economic. No more or less economic integration through four channels for exchanging goods and services, capital flows, capital flows and movement of people.

Therefore, it can be considered for a new advance in the global economy because of this process.

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