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Addis Ababa University College of Business and Economics Department of Management

The document discusses how globalization could benefit Ethiopia. It notes that globalization allows for easier international interaction and economic integration. While it may influence local cultures, it is not about removing cultural identity but learning about other cultures. Offshoring production to other countries could provide benefits to Ethiopia like jobs and acquiring new technologies, but also risks like environmental issues and loss of cultural traits. Overall, globalization opens Ethiopia's local businesses and economy to international markets and opportunities for development.

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81 views

Addis Ababa University College of Business and Economics Department of Management

The document discusses how globalization could benefit Ethiopia. It notes that globalization allows for easier international interaction and economic integration. While it may influence local cultures, it is not about removing cultural identity but learning about other cultures. Offshoring production to other countries could provide benefits to Ethiopia like jobs and acquiring new technologies, but also risks like environmental issues and loss of cultural traits. Overall, globalization opens Ethiopia's local businesses and economy to international markets and opportunities for development.

Uploaded by

hiwot muluken
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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ADDIS ABABA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

THE INTERNATIONAL BUSINESS ENVIRONMENT

ASSIGNMENT ONE

REVIEW AND DISCUSSION

NAME: Kaleyta Gebre


ID NO: GSR/8279/14

SUBMITTED TO: GEMECHU WAKTOLA (PhD)

SUBMISSION DATE: DECEMBER 14, 2021.


What globalization means for Ethiopia?

Globalization is the process of world shrinkage, of distances getting shorter, things moving
closer. It pertains to the increasing ease with which somebody on one side of the world can
interact, to mutual benefit, with somebody on the other side of the world.

Globalization involves economic integration; the transfer of policies across borders; the
transmission of knowledge; cultural stability; the reproduction, relations, and discourses of
power.

A global gathering of countries and nations uses technological advancements to share


commodities and services, as well as information and language.

We all think and interpret things differently depending on our cultural backgrounds. It is
also not about forgetting or removing our own cultural identity; it is about learning to
comprehend diverse cultures and adapting strategies to reduce cultural intolerances.

Nowadays Ethiopian young today might continue to be strongly influenced by western


cultures and western popular culture has attained an immense global following. In
Ethiopia, it is common to see that most adolescent living style which includes way of
dressing, talking, dancing, eating; beliefs etc. are highly changed to western cultures. Thus,
the exposure to these western cultural products makes the youth despise their own
indigenous culture.

The most popular criticisms of today's world's influence of globalization are that it is
primarily producing one culture, eradicating variety, and bringing everyone into the same
global culture, which is a collection of shared experiences, customs, and beliefs that bind
people on a worldwide scale. Ethiopia currently has about eighty nations, nationalities, and
peoples with diverse cultures, dialects, dressing styles, and religions, and we should all be
concerned about the inevitability of some values vanishing, which would eventually lead to
cultural extinction if no measures are taken. Even though it is difficult to determine
whether globalization absolutely brings about the improvement of the global world in our
country, we can observe the negative effects.
Offshoring production, which entails physically transferring part or all of your
manufacturing activities to another country, would help Ethiopia.

Companies obtain many offshoring benefits when they relocate their business operations
to overseas locations. Such as Lower, labor costs, Cost savings, Tax benefits and financial
incentives, Availability of skilled labor and reach new markets.

As much as companies obtain many benefits when they offshore their business processes
to other countries, there are also some disadvantages and obstacles such as Language and
communication barriers, Cultural and social issues, Quality control problems, Effect on jobs
in the home country and Time zone adjustments. 

The benefits our country gains if a foreign country offshores are

 Employment
 Embracing new technologies and acquire knowledge
 Development and adaptation of good working habit

The demerits our country would face

 Ecological problems- the use of different transportation medium to enter national


borders causes the releasement of carbon di oxide gas to the atmosphere in which
leads to global warming.
 Resource exploitation
 The loss of Cultural traits,
 Involvement of Religious missionaries
 Disappearance of values and norms.
 Considering all the points mentioned above offshoring production is mostly a good
strategy for the home country compared to the offshore country.
Ethiopia has a lot to gain from global economy. Local businesses has access to the global
market nowadays. Small companies start to compete with different companies across the
world and eventually involve in international business.  

All commercial actions that take place to promote the flow of products, services, resources,
people, ideas, and technologies beyond national borders are referred to as international
business. International business occurs in many different forms, the movement of goods
from one country to another (exporting, importing, trade), contractual agreements that
allow foreign firms to use products, services, and processes from other nations (licensing,
franchising), the formation and operations of sales, manufacturing, research and
development, and distribution facilities in foreign markets.

Ethiopia has a lot to gain both locally and internationally from globalization:

 Information transfer-information can be easily exchanged from one country to


another. This issue is similar with the technology transfer issue in global market.
 Exponential Rise in Competition-With enhanced competition from foreign brands
and companies, industries of every nation are compelled to improve their standards
and quality and customer satisfaction services. This benefits the customers and the
economy as a whole and raises the standard of living of everybody.
 Increased mergers and joint ventures-the globalizations allows the businesses access
to bigger markets and associated cost advantages.
 Economic development-globalization provides new opportunities to underdeveloped
nations by allowing them access to new market around the world.

Companies operate worldwide to achieve the following goals:

 increasing revenue,

 acquiring expertise and resources, and

 Lowering the risk of operating in a single market.


Private and governmental transactions (exports, imports, investments, and financing)
involving two or more countries are referred to as international business. Each country, as
you may be aware, has its own set of laws, taxes, culture, languages, and currency.

All of this makes it harder to conduct business. As a result, International Business


Management was created in order to comprehend how the worldwide market operates.

Merchandise commerce (import and export), services import and export, and investments
are all examples of international commercial activity.

Connecting business in a foreign country exposes organization to innovative methods and


thoughtful processes that meet customer needs.

 Depending on the three scenarios of international business, which are: further


globalization is unavoidable; IB will expand largely along regional rather than global
lines; and IB will grow primarily along regional rather than global lines.
 Opponents of increased globalization and the IB will hinder both of their advancements.
Even while globalization is unavoidable, it is possible to reap all of its benefits while
minimizing risks. Separation of raw materials, labor, and products, as well as lower
tariffs, import limits, and exchange rate controls, have all contributed to the rise of the
transportation and logistics industry increased demand for transporting raw materials,
unfinished goods and finished goods in the global economy have contributed to the
growth of transportation and logistics industry.
 Economies of scope, scale, density, improved service, and price stability are just a few of
the benefits of logistics. These advantages generate a positive feedback cycle that
attracts other businesses, resulting in even more cost savings and efficiency gains.

In its devotion to consumers, profitable worldwide expansion, and responsible corporate


and personal behavior, the organization of logistics represents two values: excellence and
innovation.

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