Globalization has a great impact on industries. Because of free flow of people, technology, culture, capital and code of conduct, one nation is automatically affected by others.
Industry is largely affected by globalization today. Globalization has brought a blessing to the people.
But it has also negative impact on industry. Positive and negative effects of globalization on industries is noted below:
Positive Effects of globalization on industries:
- Transfer of technology: Industrialists always seek improved technology to work efficiently and effectively. Technology plays an important role to have done this. More smart and latest technology ensures more efficiency. Globalization helps to accident efficiency. For example-through internet developers come to know details about modern machinery and equipment. So, immediately they collect them and upgrade the industry.
- Aesthetics: For different purposes when people travel form one county to another, they gather experience about culture, choice, fashion and aesthetics. As a result, people’s choice changes and they want to have more fashionable office, residence or any other product. Through the transfer of information, people come to know about unknown design and facilities. Globalization has made this possible.
- Demand: Globalization has increased the demand for land development, construction of multi-storied/high-rise residential and commercial buildings, etc. For example, American or European, Africans people come to Bangladesh for business, political, social or traveling purposes. Bangladeshi mangers have to consider their choices and standards. In this way they are considering the demand of different people.
- Development related industry: As the number of developers is increasing, related industries also increase. Such as, ship breaking mills, re-rolling mills, electrical and plumbing industry, etc.
- Agricultural development: Globalization is affecting the industries directly. On the other hand, necessary agricultural materials needed are also begin developed.
- Standard of living: The standard of living is increasing for urbanization. Though electronic media, people are watching and gathering knowledge about better living environment. Therefore, people are becoming interested to live in modern residence and enjoy new products. Globalization helps to do this.
- Knowledge creation: Government now becomes liberal to give permission to develop multi-storied buildings. It is because, the government has learnt from other countries construction activates through exchanging engineers, technician. Equipment and machineries that high-rise buildings are convenient for over populated and commercial areas.
- Increase Investment: Globalization puts construction industry in motion. As a result more capital is utilized in construction sector.
- Conducive environment: Government regulations relating to construction industry is being favorable, unfair practices in all sections are being checked. Because in construction industry, there are some standard code of conduct which are being adopted by Bangladeshi construction firms. It is also happening as a gift of globalization.
Negative Effects of globalization on industries:
- Obsolete Technology: Globalization makes the existing technology obsolete overnight. Through free exchange of ideas, information and innovation, today’s technology becomes obsolete tomorrow. As a result a huge amount of losses occur.
- Unplanned Urbanization: Developers are becoming aggressive in construction. To compete with others, developers are occupying rural areas for commercial purpose. As a result unplanned urbanization occurs. This is a negative impact of globalization which encourages developers to go tor more construction. Through not in unplanned way.
- Artificial crisis: Globalization increases the demand for new technology and other materials. For this demand some suppliers create artificial crisis of raw materials, which have negative impact economic condition.
Therefore, we see globalization has both positive and negative impacts on construction industry directly or indirectly. Positive impacts should be congratulated but the negative impacts are to be checked by taking appropriate steps.
Related Content of International Business:
- Reasons for International Business
- Features of International Business
- Advantages and Disadvantages of International Business
- Forms of International Business
- Basic Concept of International Business
- Barriers to International Trade