Globalisation is all corporate objectives. However, it should be noted that globalization has drawbacks as advantages.
One of the disadvantages of globalization is over-standardization of products through global branding. Use the Emirate airline to illustrate this, globalisation will mean that their services are standardized, as a aims to serve all customers. They would lose their uniqueness of culture, after they go global. Also, over-globalization will result in a lack of creativity and product diversity Hongladarom (2002), Priyesh (2004).
In addition, globalization can also create diseconomies of scale, as not all countries have the same growth and economic cycle. For example, the Emirate can function very well in the Middle East and Europe market but expanding into Asia or America market will reduce their profits. This could be due to the difficulties in coordinating activities in these new markets or cultural differences. It is also important to note that globalization will cause production base and high unemployment in the domestic market. Empirical evidence included: Mello (1997), Rodrik (1996), F (1994).
Bibliography
Fagerberg, j. (1994). Technology and international differences in growth rates. Journal of economic literature, 32 (3), 1147-1175.
Hongladarom, s. (2002). Globalization, bioethics and cultures in developing countries. Eubios Journal of Asian and international bioethics 12 (1), 103-5.
Mello, l. r. (1997). Foreign direct investment in developing countries and growth: a selective examination. Journal of Development Studies, 34 (1), 1-34.
Rodrik, d. (1996). Why have more open economies bigger Governments? NBER Working paper No. 5537.
Priyesh, g. i. (2004). Ethics versus corruption in globalisation. Journal of management development, 23 (7), 631-647. [continue] Read the full essay
