What is Globalization Doing to the World of Logistics? March 16, By David Bouchard David Bouchard is CEO Contract Logistics, Americas, DB SchenkerSince the early s, global trade agreements have divided the world up into larger and larger chunks of trading blocks where goods can flow virtually unimpeded across national borders that once protected their precious industries from outside competition with tariffs, duties and penalties.
Some experts see it as a driving force for economic development. One thing is for sure: Globalization and Money Businesses worldwide are no longer confined to national borders.
They can expand across the globe, diversify their operations and reduce their costs by moving their manufacturing operations to countries that have the cheapest labor resources or better access to raw materials.
The booming trade and rising global connectivity helps money to travel further than ever before. Companies are now able to operate across borders and reach more customers, which leads to higher profits and ultimately, economic growth.
With globalization, a company in one country can now sell its products in another country halfway around the world. Furthermore, it can build stores and factories there, invest in commodities and contribute to the local economy. Ford Motor Company, for example, moved its call centers to India.
Cisco opened a research and development center in Bangalore. InMicrosoft signed a three-year contract with Infosys Technologies in India to manage its How transportation affect globalisation IT operations.
By outsourcing their services to developing countries, companies can save money and change people's lives. Because of it, poverty rates declined worldwide over the past decades. Global Employment Opportunities Globalization allows people to relocate to wealthier countries and start their own business or find work.
This translates into a higher income and more opportunities in life. Additionally, migrants can send money home without paying exorbitant fees. The free movement of information and technology also enables trade unions to fight for workers' rights worldwide. As new policies and regulations were enforced, labor rights increased.
Additionally, sensitive issues, such as equal pay and gender equity, are becoming less and less prevalent. Multinational corporations like Google, IBM and Accenture are constantly expanding and hiring people in the countries where they operate. Others implement exchange programs to offer their employees the chance to work abroad.
Boston Consulting Group, Edelman and L. Consulting are just a few examples. This further accelerates globalization and promotes economic growth.
Video of the Day Brought to you by Techwalla Brought to you by Techwalla Greater Free Trade One of the primary advantages of globalization is the free trade of goods and resources. For instance, a country that specializes in motor vehicles will produce cars and accessories in a location that achieves the lowest costs possible, and sell them on both local and foreign markets.
This means that people living in other countries will be able to purchase these vehicles for less.
At the same time, they will have access to a wider range of brands and models. World trade has increased by approximately 7 percent since following the acceleration of globalization. Countries that export goods pay lower transportation fees and have a competitive edge. China, for example, became a leading manufacturer of goods.
Companies from all around the world outsource their production activities to Chinese factories. Their customers have access to affordable goods that they might not be able to purchase otherwise.
The Downsides of Globalization Like everything else, globalization has its drawbacks. The free trade of goods, services and information set the world economy into a cycle of income and employment growth.Globalisation, Transport and the Environment OECD has recently analysed the impacts of globalisation on transport levels, the consequences for the environment, and the policy instruments that can be used to limit any negative impacts for the environment.
A Review of Logistics and Transport Sector as a Factor of Globalization The objective of this review to identify the essential factors that affect on the logistics and transport sector through globalization processes happening in the world economy. Transportation logistics in global value and supply chains, working paper number: G.
The role of technology in globalisation, Globalisation, Global change, SOSE: Geography, Year 8, NSW In this chapter: The development of technology has flourished in recent years and has played a major role in globalisation Information technology has made significant advances in recent years, owing to the internet Communication technology.
"How Transportation Affect Globalisation" Essays and Research Papers How Transportation Affect Globalisation The effects of Globalisation on Education Globalisation is a new concept that was developed in the ’s and is now a familiar term worldwide. Julie Cidell (), ‘Air Transportation, Airports, and the Discourses and Practices of Globalization’ Yefang Huang (), ‘The Growth of Global Hub Port Cities Under Globalisation: The Case of Shanghai International Shipping Centre’.
Transportation has definitely given a great boost to globalization. Now smaller companies can easily compete with the bigger companies around the world as it is /5(6).