Globalization

Name:                        DAMMY IFEDE

Student Number:         20344591

Course:               BA Business and Routes

Year:                    2016/2017

University:           Glyndwr University

Module:                Globalisation Challenges and Opportunities

                                      (BUS 626)

Introduction

Globalisation is arguably an essential factor presently shaping the world economy system. However, it can be traced back to the 19 century (the 1800s) the changes in globalisation is bringing about now occur far more speedily, widely and much greater business, economic and social impact than in the 1800s (Jim Riley 2013)

Globalization  

Globalisation is the processes by which the world is progressively connected through an enormously trade increased, information, people and cultural exchange. It has also increased the production of goods and services, with the trend toward economic and political in different countries. (Grewal & Levy 2000).

Globalisation has also helped to create extra wealth in developing countries, it is not assisting in closing down the Gap between the world's richest countries and the poorest countries (BBC 2014)

Positive Effects of Globalization

• Greater dependence on the global economic system.
• The increase in worldwide trade.  
• Unrestricted movement of capital, goods and services.
• The same business operated in more than one country.
• The recognition of commercial enterprises such as Costco and McDonalds. (Watkins, 2002, Yusuf, 2001)

Negative effect of Globalization

• The volume and instability of capital flow increase the risks of the banking and currency crises, particularly in the financially weak countries.

• The Competition between developing countries and Protective policies in industrialised country prevent or attract foreign investment.
• The growth of international trade is exacerbating income inequalities in industrialised and less industrialised countries                          (Watkins 2002 and Yusuf 2001)

Costco Wholesale Corporation is an international chain organisation which is also one of the leading global retailers providing customers with a variety of products, ranging from different labels such as private label and popular brands (Corona, 2012). The organisation was established in 1983 in Seattle, Washington in the United State of America and presently has their headquarters located in Issaquah, Washington. It operates as a lower price and offers a no-frills warehouse business model (Costco 2012)