How globalization affect small businesses Essay

How globalization affect small businesses - Essay Example This paper examines how globalization affects small businesses. Background of Globalization Globalization can be defined as a process of moving goods, people and ideas due to the increased trading and economic activities which is greatly affected by economic integration of different countries. Globalization is a tool that is used by many countries to control economic power. It was used to influence policies, expand trade and gain economic advantage over other countries and organizations. Globalization is traced back to the First World War where super countries applied it to harness their communication and have access link to transport to different parts of the world with an economic motive. The first instance of globalization was directed by the super power to have access over India. Trade was a major link that the super power countries could access their political and economical goals; therefore they used various theories which later resulted to globalization. Countries considering themselves as superpowers were very much engrossed during the world war, but they introduced various policies within their boundaries to protect their interest while they pursue other interest which did not directly affect their country. An example is that some countries sanctioned the importation of manufactured products. This encouraged the Great Britain to expand its market by taking advantage of the situation where countries sanctioned the importation of their manufactured products by liberalizing its trade to increase its economic production while the war was being fought. After the war, many countries introduced trade tariffs which were aimed at restoring domestic industries and economic production and this highly affected other parts of the world resulting to the process of globalization (Shuman 150). Globalization In the Past and Today Globalization in the pasts was known as the anti-globalism period because of the wars which were surrounding its era. The first face is trace d during the Napoleonic wars to the First World War. It was characterized by international trade, financial flow and migrations of different races to areas where they considered havens. The trade during this era was high compared to the output that was being produced in the world by different countries. Global integration was promoted during this era because of the lowering of trade tariffs and transport cost. Transport cost was significantly reduced because of the railroad and roads being constructed on different parts of the continent. In the past, globalization was also characterized by different policies like the sanctioning of Corn Laws in Britain. Countries put in place a trade liberalization trend which was highly geared towards improving economic activities in the region. The current globalization is characterized by policies from developed and developing economies which support the process of globalization itself. The industrial sector has greatly improved because of the pr esence of skilled labor obtained from educated workforce. New technologies have also promoted globalization in the current eras they linked transport and communication as individuals living in this century are able to access vital information and communication. ICT trends within the continent have promoted and made globalization easier as it has led to the cost of accessing information and communication globally. Moreover, globalization during this contemporary society prides itself