Globalization as the Integration of the Interaction between Nations Essay

Globalization as the Integration of the Interaction between Nations - Essay Example This essay explores the factors that lead to globalization. As a manager of any firm, the main objectives are to maximize profits and minimize the costs. The costs can be minimized by looking for cheap labor force and nearness to raw materials. A company in Asia might decide to set up a new firm or move the initial firm in Asia to another country with cheap labor. Secondly, the firm can also shift due to nearness to the raw material. More so, the market can also influence globalization. A country might shift its production firm to another country targeting certain individuals in that country. Poor countries encourage foreign investors so that they can benefit from the taxes levied on them. For this reason, it is clear that also the economic status of a country is a key factor to increasing globalization. There are, however, demerits and merits of globalization in business. For this reason, this paper tends to explain the advantages and disadvantages of globalization in business. Firs tly, globalization is beneficial to many people. As discussed earlier on, an individual can move from his working office in Mexico to another country just for lunch. For this reason, the utility of this individual is satisfied. This person will feel satisfied since they got what they wanted therefore derived satisfaction. In addition, the individual might have used either a public or a private jet. In whatever way, employment is created for the pilot flying this individual for lunch. More so, the restaurant also receives some payments in compensation for what this individual will consume. Suppose an individual sets a firm in another country, what would happen? Firstly, the state will receive money in the form of tax by the foreign investors. Secondly, the area around the set firm will be developed by these foreign investors. The condition of the road will also improve, and water and electricity would be made available and affordable to the settlers around the firm. In addition, indi viduals will get employed.