Glotion: Cau' and Cons' by Nur Shazlen and Tharshini

What's Glotion?

Glotion is the globalization. In the economic terms, globalization define as growing economic integration of the world, as trade, investment and money increasingly cross international borders.

Cause

 Transnational Corporations (TNC ) are an enterprise that controls the assets of other entities in countries other than its home country usually by owning a certain equity capital stake. They are a significant factor in globalization and rapidly increase in size and wealth to conquer markets worldwide. For instance, Fast-food Company Krispy Kreme is an example of a TNC which originated in the United States and has transmitted not only within the United States but also to a number of other countries around the world. 

Under globalization, politics can goes on above the state through political integration schemes such as the European Union and through intergovernmental associations. For instance, the International Monetary Fund, The World Bank and The World Trade Organization (WTO). Besides that, political action can also go beyond the national borders through global development and NGOs.

Consequence

The advantage of globalization is access to larger markets that firms may experience higher demand for their products, as well as benefit from economies of scale and which leads to a reduction in average production costs.

Often, TNCs are blamed for this. The dominance of TNCs, especially in the areas of cultural products, has affected many around the world to fear that the distinct national identities and traditional cultures will be forfeited. Commonly, meals will be replaced with the food of American TNC giant, McDonald's. Traditional clothing will be dumped for Western clothes with the brands of Nike and Converse. No longer people will listen to the traditional music or watch movies spoken in their regional language, but rather turn to new releases by Sony or Twentieth Century Fox.

China is for manufacturing and India has become to the new world of business process outsourcing which includes everything from payroll to billing to IT support. The famous exporter of IT services country is India. 

A story of glotion:

"Schwinn Bicycle Company is an example of notion of globalization because Schwinn aim to use technology to produce bicycles with reduce the cost of production to attract the consumers from other competitors. The Schwinn Bicycle Company illustrates the notion of globalization and how producers react to foreign competitive pressure. Great Depression period, Schwinn put initiative by producing durable and stylish bikes to attract their customers. Schwinn emphasized continuous innovation. By the 1960s, Schwinn’s bicycle became famous among children and celebrities. The nature of bicycle market was changing and all the cyclists demanded features instead of heavy, durable bicycles. Schwinn fail to utilized cyclists demand. That time competitors emerged, such as Trek, which built mountain bikes, and Mangoose, which produced bikes for BMX racing. Using the production technology initially developed by Schwinn, foreign companies hired low-wage workers to manufacture competitive bicycles at a fraction of Schwinn’s cost. Schwinn relocated production to the South to get strategic place to hire non-union workers at lower wages. Most Schwinn bicycles today are built in Chinese factories and are sold by Walmart and other discount merchants. Although cyclist may lament that Schwinn is no longer the bike it used to be, Pacific Cycle officials note that it is not as expensive as in the past either. "