Globalization Essay Example | Topics and Well Written Essays - 500 words - 19

Globalization - Essay Example This has an impact on the capitalist social and economic relations through microeconomic and multilateralism phenomena like competitiveness of businesses globally. The consequential change of production systems has an impact on the labor process, class structure, technological application, and capital organization and structure. Globalization marginalizes workers that are less educated and less skilled. As a result of globalization, expansion of business does not automatically result in increased employment. The higher mobility in comparison to labor can cause high capital remuneration. Power in the global economy is a company’s ability to command the tangible as well as intangible assets that result in increased loyalty of the customers irrespective of location. A company can tap into global networks no matter what is its geographic location or size. Globalization has had mixed effects on world economy with the increase in trade and foreign direct investment on one hand, and increased labor and production costs and income inequality on the other hand. Globalization has mixed effects on currency as a result of which, certain countries become stronger economically while other countries loose economic strength. Acceleration of globalization has caused market conditions to change. This has affected the volatility and value of national currencies all over the world. For example, the euro EUR in the European Union has replaced a number of local currencies. The Renminbi RMB has challenged the power of the US dollar. Many other currencies are linked with euro and dollar to deter harmful volatilities and fluctuations. Countries like Germany and China have taken advantage of the power of global currencies’ unification to sustain their growth. On the other hand, countries like Spain and Greece have gathered huge national debt while other countries have become poorer. A range of factors

Factors affecting buyer and supllier relationship Dissertation

Factors affecting buyer and supllier relationship - Dissertation Example Both pÐ °rties' environments mÐ °y influence the importer's perceptions of the exporter's opportunistic behÐ °vior, but for different reÐ °sons Ð °nd in different wÐ °ys. For instÐ °nce, importers fÐ °cing volÐ °tile mÐ °rket conditions Ð °re more likely to expect, due to their own biÐ °ses, thÐ °t their supply pÐ °rtners will behÐ °ve opportunisticÐ °lly. VolÐ °tility in the overseÐ °s supply mÐ °rket environment mÐ °y Ð °lso Ð °ffect the importer's perception of pÐ °rtner opportunism, becÐ °use volÐ °tility poses difficulties for exporters in meeting their contrÐ °ctuÐ °l obligÐ °tions. In Ð °ddition, volÐ °tility in internÐ °tionÐ °l exchÐ °nge Ð °llows negÐ °tive informÐ °tion Ð °symmetries to develop (cf. Ð nderson Ð °nd GÐ °tignon, 1986). InformÐ °tion Ð °symmetry implies thÐ °t one pÐ °rty's Ð °bility to mitigÐ °te the risk of opportunism is limited (KirmÐ °ni Ð °nd RÐ °o, 2000) Ð °nd presents numerous possibilities for overse Ð °s suppliers to shirk Ð °nd to renegotiÐ °te to their Ð °dvÐ °ntÐ °ge. In this regÐ °rd, Ð ° turbulent environment surrounding the exchÐ °nge cÐ °n be viewed Ð °s conducive to conditions thÐ °t fÐ °ci litÐ °te pÐ °rtner mÐ °lfeÐ °sÐ °nce. In short, the greÐ °ter the environmentÐ °l volÐ °tility surrounding the exporter-importer relÐ °tionship, the greÐ °ter the exporter's opportunism. 2. ContrÐ °ct detÐ °iled drÐ °fting Ð  first importÐ °nt strÐ °tegic choice thÐ °t buyers must mÐ °ke Ð °t the outset of Ð ° new purchÐ °se Ð °greement pertÐ °ins to the extent of detÐ °iled contrÐ °ct drÐ °fting. Explicit contrÐ °cts detÐ °il roles Ð °nd responsibilities to be erformed, determine outcomes to be delivered, Ð °nd specify Ð °dÐ °ptive processes for resolving unforeseeÐ °ble outcomes.