It has been said that the world is becoming a global village in which there are no boundaries to trade and communication. Do the benefits of globalizationoutweigh the drawbacks?
Yesterday's video contained some useful ideas, but here are some more ideas from my ebook:
Positives of globalisation:
• Business is becoming increasingly international.
• Aglobal economy means free trade between countries.
• This can strengthen political relationships.
• Globalisation can also create opportunities for employment.
• It encourages investment in lessdeveloped countries.
• It could reduce poverty in the developing world.
Negatives of globalisation:
• Globalisation can also lead to unemployment and exploitation.
• Companies move to countries wherelabour is cheap.
• This creates redundancies, or job losses.
• Some companies exploit their employees in developing countries.
• Salaries are low and working conditions are often poor.
• Globaltrade also creates excessive waste and pollution.
Natural Disasters and Corporate Risk Management
Natural Disasters usually bring unexpected and big losses, because it can not bepredicted, prevented, or mitigated. Natural disasters are called pure risk or hazard risk in insurance. Hazard risk is externally driven factors. Such as hurricanes, earthquake, tornadoes, flood, fire,lightning etc.
Main goal for corporate risk management is to lessen losses and achieve and sustain possible benefits from each activity. Good risk Management team should be able to see downside andupside factors. Risk management team should be able to asses, estimate, report, treat, monitor and review risks.
For instance, recent disaster in Haiti was unpredictable and hurt every business in thecountry and business from other countries that were working with or in Republic of Haiti. Many millions direct and indirect losses, personnel losses, damage to the property were caused by earthquake....