Culture the Rise of Globalization Has Been

Culture

The rise of globalization has been a contentious issue both economically and politically. Aspects such as tax incentives for overseas operations, repatriation of dollars earned in foreign markets, and potential currency wars used to devalue exchange rates, are all problems plaguing a globalized society. Add the possible threat of cyber terrorism, and global companies have a cacophony of threats that are as difficult to enumerate as they are to understand. However, through these threats, society has generally benefited for the technological advances and financial globalization of enterprise. For one, capitalism continues to spread all around the world. This provides incentive for society to innovate, and improve the overall quality of life for everyone involved. Financial globalization provides the needed capital to overseas ventures that are deemed worthy of investment. Through transparency initiatives, emerging markets are now better able to secure vital funding needed to innovate. Language adoption has facilitated an even exchange of information throughout the world. No longer are the language barrier that once stymied creativity and communication. Through the use of technological advances, communication can be easily deciphered and translated into meaning that both parties can understand. This further facilitates globalization as companies are not constrained by geographic or language boundaries (Engel, 2008).

Factors That Have Enabled the Rise of Globalization

A factor that has given rise to this globalization is a burgeoning middle class around the world. Emerging markets particularly in China and Brazil are now positioning their economies for growth. Enterprise has allowed these countries to continue to growth their overall middle class workforce. Through the rise of the middle class, more individuals are now able to purchase goods and services. These purchases help stem still further demand for products, which in term leads to more hiring, and thus middle class growth. This self-fulfilling prophecy of sorts is self perpetuating. Once the process begins to take hold, it feeds on itself to the benefit of society.

Another factor that has given rise to globalization is devalued currency. This has been a contentious issue of late as currency often provides benefits to one country to the detriment of another. For instance the Japanese central government has initiated a currency devaluation programs designed to make $1 equivalent to 100 yen. This devaluation helps Japanese exporters move overseas to foreign markets to sell cheaper products. However, it makes it very difficult for American exports to sell their cars to Japan. As such, globalization is occurring as Asian countries, who intentionally devalue their currency are now better able to move to other markets where demand is thriving (such as America for cheap, fuel efficient cars).

What benefits and problems arise from these very factors with regard to cultural diversity in a business organization?