Friday, August 28, 2009

Globalization

First we must understand the definition of globalization. According to Wikipedia, globalization is the process of global economies integrating through exchange networks. M. Waters is quoted as defining globalization as "A social process in which the constraints of geography on social and cultural arrangements recede and in which people become increasingly aware that they are receding (M. Waters, Globalization, 1995, p. 3).

“In popular discourse, globalization often functions as little more than a synonym for one or more of the following phenomena: the pursuit of classical liberal (or ‘free market’) policies in the world economy (‘economic liberalization’), the growing dominance of western (or even American) forms of political, economic, and cultural life (‘westernization’ or ‘Americanization’), the proliferation of new information technologies (the ‘Internet Revolution’), as well as the notion that humanity stands at the threshold of realizing one single unified community in which major sources of social conflict have vanished (‘global integration’)" (Scheuerman).

There have been concerns that globalization has increased inequality and environmental degradation by eating away at the competitive edge and lowering quality of life. Some say that long standing problems, such as the deterioration of the environment will erupt due to the scale of change. Contemporary theories associate globalization with deterritorialization, the separation of social, political, or cultural practices from their originating places and populations. Globalization increases possibilities of relationships between all countries and cultures. Therefore the local competitor is diminished and allows e-commerce to create a non-territorial competitive environment eating away at the local small business sector.

In conclusion, globalization can affect the local small business by diminishing the competitive edge. Small businesses do not have the buying power, the marketing funds, or the workforce to compete with these large e-commerce companies. Therefore, the small local business needs to target a specific market and focus on the “small business” advantages such as personalization and customer service. Making your small business special and unique will make it more viable, especially in this economy.


Sources:

Globalization. (n.d.). Retrieved from Wikipedia: http://en.wikipedia.org/wiki/Globalization

Lechner, F. (n.d.). glossery. Retrieved from The Globalization Website: http://www.sociology.emory.edu/globalization/glossary.html#G

Scheuerman, W. (n.d.). Globalization (Stanford Encyclopedia of Philosophy). Retrieved from Stanford Encyclopedia of Philosophy: http://plato.stanford.edu/entries/globalization/

Waters, M. (1995). Globalization.

Image Source:

The Negative Effects of Globalization. (n.d.). Retrieved from Word Press: http://globalizationeffects.wordpress.com/2009/05/26/9/

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