Critical assessment of the contention that todays globalised business Essay

Critical assessment of the contention that todays globalised business environment is mainly about the production of flows, and needs to take little account of territories - Essay Example Flows are a significant part of the current globalization process because they allow for cultures and economies of different countries to be integrated to one another. This leads to the creation of a common style of doing things and a step towards the development of a common global culture (Wolf 2004). A territory refers to a defined area of water and land mass, and air owned by a country, state, organization or a person. People have often hold the view that globalization has caused the dissolving of all boundaries and borders and that cultural influences, people and money can flow freely all round the globe. According to such a view, the globalised business environment is basically about the creation of needs and flows that take little consideration of territories. However, there are instances in which we find that the flows of goods, technologies or services are subject to territory border restrictions (Bhagwati 2004). ICT has played a significant role in globalization because it has changed the environment in which services and goods are created and distributed. Currently, people move across international boundaries for purposes of business, studies, searching for better economic opportunities and tourism. This in turn has led to transfer of technologies, trade patterns and factor endowments across the world. (Freeman 2006). Even with the potential advantages of globalisation, there are still policies that control or restrict the free movement of workers into advanced labour markets. Some territories continue to be a significant part of today’s globalization to a great extends for example the San Diego-Tijuana. Tijuana-San Diego lies on the border between, San Diego and Tijuana, two large coastal cities in North America. The international metropolitan area is located at the junction of major state routes, interstates and federal highways. It is positioned at the terminus of 10 major federal highways and interstates. Stiglitz(2006) explains that such a strategic position is important for globalization because it serves as a point which people or states meet and integrate. It facilitates easy flow and exchange of ideas, goods, capital, technology and people. San Diego is a significant area of culture finance, and economies in California while Tijuana is a significant regional business center in northwestern Mexico. Globalization has enabled the region to remain as a dominant commercial center in the US. According to Noah Timothy (2010), San Diego experiences the most active land-crossing in the world as people cross for business and tourist purposes. Globalisation has allowed san Diego-Tijuana to grow to a powerful economic region in the California. As much as globalization has increased the flow of goods or people across borders, there are still some policies and trade regulations in some countries that restrict the importation of certain goods (Bhagwati 2004). For exa mple the importation of certain merchandise are restricted or totally prohibited in Portugal to protect its economy and security while some are subject to restrain under import quota (US. Department of Commerce 2010).This means that globalization does not have the power to disregard territories. The current flow of goods people, finance and cultural ideas around has bound up territories through the creation of a global competitive environment that