Is globalization really happening or is it exaggerated?
Globalization in its broadest sense, as defined by Frederick T. Temple, indirectly means the worldwide integration of societies and economies by the cascades of technology, trade and capital. The achievement of gloablization will be chracterized by the integration of production, faster cross-border investments and more commerce (Temple, 2008). Evidently, global trading has made a significant growth over the past years. Athis can be evidenced by a steady growth in global exports in relation to output annually by a ratio of 1. 5 to 1 between the years 1965 to 2000 (Temple, 2008).
The average ratio of trade to GDP in developing countries also made significant developments by rising from 29 percent to 43 percent in just the past decade (Temple, 2008). Another clear evidence of globalization is offshore outsourcing. By definition, offshoring or offshore outsourcing is wherein an individual or a company sources out labor to a third party individual or company in a country which is not the one in which the client company is based, primarily for the purposes of taking advantage of lower costs in labor (Overby, 2008).
With multinational corporations mushrooming their operations in countries with low labor costs in developing countries in Asia, globalization is clearly making its presence felt. Activities in 2006, such as HSBC’s move of opening a new 2,000 seat facility in Kolkata and a software development centre in Hyderabad; US giant GM’s decision of handing out $15 billion of outsourcing contracts to a range of suppliers; and UK telco Vodafone who split its outsourcing task between EDS and IBM (McCue, 2006), are real proofs that globalization is not at all exaggerated. It is as real as it can get.
McCue, A.(2006) Re:Viewing 2006: The year in outsourcing. etrieved March 18, 2008, from CNET Networks, Inc website. http:// services. silicon. com/itoutsourcing/0,3800004871,39164581,00. htm? r=1. Overby, S. (2008). Everything you need to know to avoid the pitfalls of outsourcing. Retrieved March 18, 2008, from CXO Media Inc. An International Data Group(IDG) Company http:// www. cio. com/article/40380/40380/#1. Temple, F. T. (2008) Evidence Shows Globalization Has Benefited the Poor. Retrieved March 18, 2008, from the World Bank website. http:// wbln0018. worldbank. org/lo%20web%20sites/bangladesh%20web. nsf/98a64a665c710adc85Sample Essay of Paperial.com