My understanding of the term of Globalization is based upon companies making standard products, and selling the same product in different international or in effect global markets.

There are many ways of looking at this topic. There are many stakeholders that are either gaining in terms of this system, or there are losers too. The loss of a production factory in the US or UK for that matter would benefit the Chinese, the Indonesians economies. The cost of production are lower in South East Asia, so underdeveloped economies would benefit by having extra factories and employment in these nations.

Some governments on a trade basis do better than others, reflecting on trade balances via imports and exports. Likewise retailers by having more choice of products allows better consumer focus in targetting customers based on market segmentation.

Depending on the product offering, the consumer can benefit, though the price does not reflect the low cost origination of the product itself. So here the company are the leading beneficiaries from globalization. Companies such as Nestle closing down a factory in York, and moving this to Indonesia and Bulgaria, the much lower cost of production from York to Indonesia might represent 3-5 pence per bar in production savings. The end user the consumer at the supermarket or local news stand will not benefit, it will be usually the same price charged as usual.

Companies playing a global game to capture business and make products available worldwide tend to be very large in size and the quality of the product is proven and well established. The competition of the free market principles can be argued as a benefit to the world. Though in practise the manufacturer will tend to have a fixed price level set as basis for moving on a global scale.

Depending upon product quality, product specifications, the consumers can benefit by having a new product available that would appear to be more easier to use, or more reliable in terms of quality.

Overall i would suggest to think that the only winners are the companies themselves. They stand to make additional profits for themselves, based upon an already proven product, a winning product, and successful marketing strategy. The use of the internet, the software, the mobile phones are all exported on this globalisation process. Poverty is not alleviated as a result from globalisation. It puts profits as the main driver. Democracy, environmental issues, the workers themselves (the Chinese worker, producing the product for big brand A,B or C will get paid a pittance for long hours and hard work).

Learn more about this author, Costas Chryanthou.
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