Whirlpool Case Study

Globalization Case study;

Q1: Do you think that globalization and MNE activity are creating problems for the world? What kind of problems can you identify? Are there some unintended consequences of international business?

Yes Globalization and MNEs activities creating problems for the world. There are societal consequences of market globalization. First, the loss of national sovereignty as MNEs interfaces with governments' ability to control their own economic and social political system. Such as, in Canada it is harder for government to manage policies regarding taxes, monetary policy, social issues and exchange rates. Also, some firms are bigger than the economies of many nations such as McDonald's which is all over the place in Europe and Asia. Second, offshoring and the flight of jobs so there is job losses at home and low wages creating substandard working conditions. In addition, there are exploited workers, child labor, ignores human rights and basic labor standards. Third, the effect on poor as globalization creates jobs and raises wage, it also can disrupt local job market. MNEs may pay low wages and exploit workers so it widening the gap between rich and poor people. Multinational companies can weaken poor countries. Fourth, effect on natural environment; globalization harm the environment by promoting industrialization activities which generate pollution especially when countries have weak environmental standards so factories will build with minimal environmental standards. In addition to that, there are effects on national culture, as consumers buy similar products (junk food), in this way the traditional norms, value, behaviors may homogenize over time and national identity may be lost to global culture.

Q2: Summarize the arguments in favor of globalization made by the business executive. What is the role of technology in supporting company performance in globalization business environments?

The business executive with extensive international dealings expressed his own view in favor of globalization. He argues that the worldwide reduction of barriers to trade and investments as many national governments reduce trade and investments barriers and these trends facilitated by different world organizations which have many members around the world such as World Health Organization which aims to provide better health care around the world which associated with GlaxoSmithKline to provide better health care and combat diseases of the poor for example in Africa which suffered from different disease such as Elephantiasis and AIDS. Also, the drivers of market globalization is the market liberalization and adoption of free markets as business executive argues that many companies access to foreign markets because of the huge and upfront research and development costs they accumulate as international business allowed the world to create wealth. The free market allowed companies to amortize the costs of big projects internationally. The globalization contributed to develop the education systems and keep more people educated as Bill Gates helped many people to get computers and keep them hooked on the Internet. Business executive argues the drivers of industrialization, economic development and modernization of market globalization. Market globalization provide better paying jobs, create more jobs, better living standards, improving lifestyles, better infrastructure, increaser standardization in employment policy and rules and provide more business opportunities. Many domestic companies will have the chance to go abroad as small companies will become part of supply chain so that increase the opportunities to grow. The integration of world financial markets as a driver of market globalization as international companies injects new funds knowledge and technology as Motorola profited from its business in China and contributed to the development of