Research Proposal

The Impact of
Globalization on the
World Economy in
the Global Market
and Production

Your Name: Nur-Raisa D. Ismula - BSHM – 1A

Supervisor’s Name: Ms. Jovelyn H. Lacierda - GE 113

Instructress

Institution and Department: Zamboanga Peninsula Polytechnic

State University – School of Business and Administration
 The Impact of Globalization on the World Economy in the Global Market and
Production
Authors: Okoro, Blessing C., Ogochukwu E.S. Nebo and Okoro Victoria I.

Introduction:

Globalization has various aspects, including the globalization of business sectors and
the globalization of production. As globalization unfurls, it is changing enterprises and
making nervousness among the individuals who accepted their positions were shielded from
foreign contest. Presently, this also is evolving. Propels in innovation, lower transportation
costs, and the ascent of gifted specialists in agricultural nations suggest that many
administrations never again should be performed where they are conveyed. The rethinking
pattern is in any event, hitting wellbeing administrations.
Accounting work is being outsourced from America to India. In 2005, some 400,000
individual tax returns were compiled in India. Indian accountants, trained in U.S. tax rules,
perform work for U.S. accounting firms. As the best-selling author Thomas Friedman has
recently argued, the world is becoming flat. People living in developed nations no longer
have the playing field tilted in their favor. Increasingly, enterprising individuals based in India,
China, or Brazil has the same opportunities to better themselves as those living in Western
Europe, the United States, or Canada.
The globalization of production refers to the sourcing of goods and services from
locations around the globe to take advantage of national differences in the cost and quality
of factors of production (such as labor, energy, land, and capital). By doing this, companies
hope to lower their overall cost structure or improve the quality or functionality of their
product offering, thereby allowing them to compete more effectively. Nevertheless, the
globalization of markets and production will continue. Since the collapse of communism at
the end of the 1980s, the pendulum of public policy in the nation after nation has swung
toward the free market end of the economic spectrum. Regulatory and administrative
barriers to doing business in foreign nations have come down, while those nations have
often transformed their economies, privatizing state-owned enterprises, deregulating
markets, increasing competition, and welcoming investment by foreign businesses. This has
allowed businesses both large and small, from both advanced nations and developing
nations, to expand internationally.
At the same time, globalization has created new threats for businesses accustomed
to dominating their domestic markets. Foreign companies have entered many formerly
protected industries in developing nations, increasing competition and driving down prices.
For three decades, U.S. automobile companies have been battling foreign enterprises, as
Japanese, European, and now Korean companies have taken business from them. General
Motors has seen its market share decline from more than 50 percent of about 28 percent,
while Japan’s Toyota has passed Chrysler, now DaimlerChrysler, to become the second-
largest automobile company in America behind GM and ahead of Ford.
Review of Related Literature for Conceptual Framework:

As business sectors globalize and a rising extent of business movement rises above
public lines, organizations are expected to help make due, control, and police the worldwide
commercial center, and to advance the foundation of global deals to oversee the worldwide
business framework.
The World Trade Organization like the GATT is essentially answerable for policing
the world trading framework and ensuring country states comply with the guidelines set
down in trade arrangements endorsed by WTO part states. Starting around 2006, 149
countries that all in all represented 97% of world trade were WTO individuals, in this way
giving the association colossal extension and impact. Two full scale factors appear to
underlie the pattern toward more prominent globalization. The first is the decrease in quite a
while to the free progression of products, administrations, and capital that has happened
since the finish of The Second World War. The subsequent variable is mechanical change,
especially the emotional advancements lately in correspondence, data handling, and
transportation advances.
The globalization of business sectors and production and the subsequent
development of world trade, foreign direct investment, and imports all suggest that
organizations are tracking down their home business sectors enduring an onslaught from
foreign contenders. The developing combination of the world economy into a solitary,
colossal commercial center is expanding the power of rivalry in a scope of assembling and
administration ventures than 50 million individuals abroad and produced esteem
representing around one-10th of worldwide Gross domestic product. The foreign partners of
multinationals had an expected $19 trillion in worldwide deals, a lot higher than the worth of
worldwide commodities, which remained at near $11 trillion.

Review of Related Literature for Theoretical Framework:

A. Theories of Transnationality and Transnationalism

Albeit restricted in the inquiries it can respond to, the investigation of
worldwide urban communities provides us with a brief look at how transnationalized
populaces redesign their spatial relations on a worldwide scale, a point taken up too,
and with a seriously alternate point of view, by hypotheses of transnationality and
transnationalism. Transnationalism is alluded to all the more by and large in the
globalization writing as an umbrella idea enveloping a wide assortment of
extraordinary cycles, practices and improvements that happen at the same time at a
neighborhood and worldwide level. Transnational cycles and practices are
characterized extensively as the different ties and connections - monetary, political,
social and social that connection individuals, networks and organizations across the
boundaries of country states inside the field of movement studies.
Transnationalism came to allude to the exercises of migrants to manufacture
and support multi-abandoned social relations that interface their social orders of
beginning and settlement as a solitary bound together field of social activity (Basch et
 al. 1994: 7). Developments in transportation and correspondences have made
conceivable a thickness and force of connections not beforehand conceivable
between the nation of beginning and of settlement. This, thusly, has considered
these networks to live all the while in at least two universes or to make and live in
'transnational spaces' to a degree not recently known. Perceiving this new reality, the
insightful writing embraced a change in outlook from global movement to
transnational relocation, and started to allude to these networks as transnational
networks.

B. Theory of Liberalism:
Liberalism sees the process of globalization as market-led extension of
modernization. At the most elementary level, it is a result of ‘natural’ human desires
for economic welfare and political liberty. All this has led to technical standardization,
administrative harmonization, translation arrangement between languages, laws of
contract, and guarantees of property rights. But its supporters neglect the social
forces that lie behind the creation of technological and institutional underpinnings.
Globalization has also been explained as a strategy in the contest for power
between several major states in contemporary world politics. They concentrate on
the activities of Great Britain, China, France, Japan, the USA and some other large
states. Thus, the political realists highlight the issues of power and power struggles
and the role of states in generating global relations. It is considered as antithetical to
territorial states meaning they are not equal in globalization, some being dominant
and others subordinate in the process. But they fail to understand that everything in
globalization does not come down to the acquisition, distribution and exercise of
power. It has also cultural, ecological, economic and psychological dimensions that
are not reducible to power politics. It is also about the production and consumption of
resources, about the discovery and affirmation of identity, about the construction and
communication of meaning, and about humanity shaping and being shaped by
nature. Most of these are apolitical because power theorists also neglect the
importance and role of other actors in generating globalization. These are sub-state
authorities, macro-regional institutions, global agencies, and private-sector bodies.
Additional types of power-relations on lines of class, culture and gender also affect
the course of globalization. Some other structural inequalities cannot be adequately
explained as an outcome of interstate competition. After all, class inequality, cultural
hierarchy, and patriarchy predate the modern states.
The lowering of trade barriers made globalization of markets and production a
theoretical possibility. Technological change has made it a tangible reality. Since the
end of World War II, the world has seen major advances in communication,
information processing, and transportation technology, including the explosive
emergence of the Internet and World Wide Web. These trends have been driven by
anti-immigration sentiments in Europe, although elections occurring in 2017 have
proven to be largely pro-globalization rather than anti- globalization. Globalization
has impacted nearly every aspect of modern life and continues to be a growing force
in the global economy. While there are a few drawbacks to globalization, most
economists agree that it is a force that is both unstoppable and net beneficial to the
world economy.
C. How Globalization is affecting the World Economic Development
Effects of globalization can be discussed in the following different ways:

 Global Markets - As per (Hill, 2009) Global Market alludes to the "Converging
of Generally Particular and separate Public Business sectors into one gigantic
worldwide commercial center." With the extensions of worldwide business
sectors change the monetary exercises of trade of products and assets.
Evacuation of Cross-Line Trades boundaries has made the development of
Worldwide Business sectors more doable.

 International Institutions - A portion of the powers on the planet is in the

blessing of an administration that oversees the whole world. Presently the
foundations like United Nations Organization, International Monetary Fund,
World Trade Organization and World Bank are close to the ideas of those
gatherings since they are controlling the connection between various nations
and overseeing issues of Equity, Human relations or political variables (IMF
Center, 2005). United Nation Organization’s basic role to acquire the piece
from one side of the planet to the other, around 191 nations is the individuals
from UNO (Hill, 2009).

 Changes in World Trade Picture - Before the period of Globalization, US of

America was predominant in world commodity. After the approach of
globalization, Germany, Japan, South Korea and China have truly tested the
place of America (Hill, 2009).

 Changes in Foreign Direct Investment – Foreign Direct Investment is

considered as meaning mark of financial turn of events. As per (Salvotore,
1998) interest in type of terrains, capital great, inventories, and plants are the
genuine ventures. Direct Investment is in state of when one firm is controlling
a firm or laying out an auxiliary. The Foreign Direct Investment should be
sufficiently able to control parent organization and foreign host organization.
The control implies that parent firm should claim somewhere around 10%
load of the auxiliary. Lower than this restriction of offers is considered as
portfolio investment (International Monetary Fund (IMF), 2008).

Research Methodologies

The review assessed the degree to which globalization on the world economy
influences the worldwide market and creation of foreign interest in US, France, Germany,
Japan, United Kingdom, Canada, Italy, China and other foreign financial backers. The
Information for the review were gotten through optional information. Discoveries from the
review showed that Globalization has various aspects, including the globalization of
business sectors and the globalization of creation. An essential shift is happening on the
planet economy. We are getting away from the world where public economies were relatively
independent substances, segregated from one another by hindrances to cross-line trade and
investment; by distance, time regions, and language; and by public contrasts in unofficial
law, culture, and business frameworks. What's more, we are pushing toward the world in
which obstructions to cross-line trade and investment are declining; saw distance is
contracting because of advances in transportation and media communications innovation;
material culture is beginning to seem to be comparative the world over; and public
economies are converging into a reliant, coordinated worldwide financial framework. The
interaction by which this is happening is normally alluded to as globalization.

Conclusion:

In today’s society, it has indeed that Globalization of Business Sectors and the
Globalization of Production has been evolved year by year including the progress of
technologies that we have especially for those highly-developed countries who have already
advanced technologies in which that it can easily import and export products and services
from one country to another country. We all know that, the sourcing of goods and services
globally from one country to another country in order to take advantage of national
differences as to the cost and quality of factors of production (such as labor, energy, land,
and capital). These factors will help us to work and produce our own products in which that it
will import and export our own products to other countries so that, our Globalization can
make us better quality and create the best image towards the foreigners who would like our
products that we made. Not only that, our Global Technologies are present in order to create
something new as long as it is not made for imitation and it is made by our own originality in
order to witness other countries by showing appreciation and full of respect from another.
However, there are some countries in which that they are highly competitive in terms
of their technologies that they have especially that they are producing their own product and
services in order to threat other countries for them to easily down the competition of other
competitors globally. Nowadays, our Globalization has something to do in comparing their
Gross Domestic Product from one country to another country, comparing their Gross
National Product, the Annual Earnings, and the other stuff. Globalization is something to do
in battling other competitors most especially the Technologies that is present in their country
unlike in our country, since we do not have enough technologies that we have but there are
some are outdated and did not upgrade our technologies for the past several years ago. If I
am a future innovator, I must create our own technologies that is design for advance and it
can easily import and exporting goods and services from one country to another country and
it is easy for competing other countries globally but as of now, we do not have any powers to
do such things in order to beat them. Because of the technology, some countries were faced
threats from other countries in which that they are competing with one another as a result of
threatening competition.
Transnationality and Transnationalism is indeed to transporting goods and services
from one country to another in order to witness those kinds of products that is present in
their respective countries in order to appreciate and value our products and at the same time
they will be the ones to promote the quality and consistency of our products that we made.
Not only that, our Globalization Networks in which it will serve as a communication especially
to our family love ones, friends, professors, and other stakeholders from other countries in
order to see even just we are at home and as long as we can communicate and meeting
virtually since we are still in the phase of Pandemic Crisis of COVID – 19.
Globalization in Liberalism has indeed something in expressing freely in terms of
expansion of our markets that we have, the expansion of products and services in a form of
exposition in order to avoid any of those products and services in declining them. Not only
that, we can use our technologies, languages, cultures, beliefs, traditions, and customs in
our country to express our rights as a Filipino Citizen towards the other countries against the
illegal activities such as neglecting the social forces of other countries, illegal competition as
a result of loss of liberalism, and the other stuff. As a Filipino Citizen, we should express
freely in all aspects of Globalization as a result of living peace and liberty as a whole world.
And lastly, our Globalization faced affection in the World Economic Development
such as Global Markets, International Institutions, Changes in World Trade Picture, and
Changes in Foreign Direct Investment in which that it will affect our country in terms of
currencies that we have, the products and services that is present in our society, the
technologies that is present in order to use and compete other countries, the way that they
express their freedom of expression, and the other stuff as a result of unexpecting
competition and faced threats from other countries.
To end my conclusion, I can say that my research proposal that I have is relevant
and effective especially when it comes to Globalization because this is very important to
learn, to reflect, and to realize that our country has faced several problems in coordinating
our products and services by importing and exporting form one country to another but our
technologies that we have has something outdated and no upgraded in any of those
technologies that we have as a result of out of competition. This research proposal can help
me to shape ourselves towards the future and we can do this in order to improve our country
by eliminating all those issues that is unavoidable at all. Since our Globalization has
impacted several aspects as a result of changing competitions from one country to another
country, and the other stuff. As a student, if we are going to create our Research Proposal,
make sure that it is relevant, effective, reliable, and efficient to our beloved audience and to
our beloved panelist in which that it will be based our research proposal output if it is
approved, approved with reservation, or rejected with some reasons. And at the end of the
day, we can learn, reflect, and realize that our Research is our weapon or foundation to
success especially the current trends and issues that we have in our society and at the same
time, we can make a better person towards our future.
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