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Response paper to 'Economic Globalization'

This article (Buckley, 1998) divides into three parts: The description of the global marketplace, the competition and protection in the global marketplace and the change of the global financial markets . The article points out that the volume of world trades increase significantly in recent marketplace and business might compete not only with their neighbouring organizations but the businesses in faraway countries as well. The article states that services and intellectual property rights are becoming to comply with the international regulations. Additionally, tariff has been decreased to encourage the international trade. Buckley (ibid) believes that the gap between the rich and the poor has widened not only between countries but also within countries in recent year, and the poor might suffer hard lifetime. It seems not be wise to just focus on the profit. For the sophisticated companies, taking the sustainability into consideration might be more worthwhile to achieve the long-term development. The foreign exchange rate fluctuations exert an significant impact on the profitability of commercial organizations (ibid). Furthermore, according to Buckley (ibid), the global financial markets emphasize more on a few OECD countries such as United States, the UK and China.

My response to this is to totally agree with the authors. First and foremost, companies should take both the social responsibility and the profitability into consideration. Although customers prefer the merchandise with both excellent quality and appropriate price, they are caring more and more about the sustainability of the organization which they are served. If certain unethical issues occurred within an organization, the customer might boycott the services and products providing by the company. Secondly, the foreign exchange rate plays a vital role related

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