Impact of globalization on the cultural environment of business China Essay

Impact of globalization on the cultural environment of business China - Essay Example China’s economy has shifted from being developing to being the fourth largest economy in the world. This is attributed to the high capital flows across its borders and hence, globalization. Globalization has had substantive impact on the business environment in Chinese organizations. The following paper critically investigates and analyses globalization’s impact on the cultural business environment in Chinese organizations. Globalization is viewed differently by economists and business leaders. According to Lui, Anti-globalists views capitalize on the cons of this phenomenon which include employment insecurity associated by production shifts. Another major minus of globalization is pay cuts due to increased competition associated to opening up local markets to global competition. Lastly, global companies are associated with social injustices in their business practices and unfair working conditions such as slavery and mismanagement of the environment. Pro-globalists maintain a strong view that globalization lead to higher standards of living. They argue that competitive markets lead to more efficiency in resource utilization, elimination of monopoly markets and how it promotes democracy all over the world. To understand what net impact globalization has, it is vital to appreciate that globalization refers to a process based on the formation of a single market of goods, services and factors of productions, including capital, labor, technology and natural resources, covering all the economic regions of all countries. The two main aspects which led to the sudden transformation were sophistication in information technology field and innovation of internet. In this process, national and international markets are combined in to a single complex whole. In the world economy, globalization lead to an increased dependency on different