The Impact of Globalization on the Global Economy and Global Business Assignment

The Impact of Globalization on the Global Economy and Global Business - Assignment Example From this paper it is clear that the Westphalian model of nationhood allowed different groups to form nations and maintain some degree of autonomy. The autonomy led to the creation of sovereign governments that were recognized locally in the nation and also internationally under the Westphalian treaty. Under this model, people and businesses had to be done within the confines of a given nation or state. In order to do any business elsewhere, the business needed to take up a charter or a kind of permit in the foreign jurisdiction. This provided serious restrictions for doing business borders. The Age of Exploration was pioneered by European sailors mainly from the Iberian nations of Spain and Portugal who found ways of reaching other nations by sea. This led to colonization and several international grasp of lands in foreign territories. In this era, businesses were organized strictly according to national lines and it was only the governments of the respective European nations who co ntrolled affairs in the overseas territories they had acquired. This led to serious tensions that led to several wars in the past three hundred years. The largest and most destructive of these wars fought over the control of national interests was the Second World War which was fought on the basis of trade restrictions and control of foreign territories. After the Second World War, the United Nations was formed to seek peaceful means of resolving issues and the promotion of human rights and the improvement of lives for people in societies around the world. Towards Modern Globalization The United Nations and other related entities like the IMF and World Bank set the foundation for the integration of nations and the unification of purpose of different businesses from different parts of the world. This marked the move towards the globalization that we have today. Globalization for the most part refers to the worldwide exchange of resources between nations and communities without restri ctions. As the study outlines globalization best refers to the elimination of borders and the disappearance of national restrictions on trade and other economic activities. Globalization has encouraged the harmonization of standards across borders and this has led to the maintenance of common systems and structures that aim at providing the best results for nations and peoples in different parts of the world. Globalization has affected global business and global economy in several ways. In other words, globalization has changed the world from the previous Westphalian model where citizens and businesses from nations could not operate in other nations without strict restrictions and limitations. There have been several changes that globalization has created in the general sense as well as the macroeconomic and microeconomic levels. General Trends of Globalization that Affects Businesses The fact that globalization, powered by the United Nations was inspired by the need to protect human rights and the dignity of people has led to a high degree of social consciousness.