Political Science

Covering a broad range of distinctive cultural, political and economic trends, globalization has rapidly become one of the greatest and most fashionable words in the contemporary academic and political debate. In common discourse, the term globalization is usually applied as a synonym for several phenomena. The term globalization is used to refer to the policies applied in the world economy commonly known as economic globalization. It is also used in reference to the increased dominance of American or western forms of cultural, political and economic life across the globe. Furthermore, globalization refers to the explosion of new technologies on information especially due to the revolution of the internet technology. Nokia manufacturers is one of the organizations that has gone global in order to reap the benefits of globalization. It has been driven by several factors and also faced certain risks and challenges due to trading globally (De Quiros, 2004).

Drivers of globalization for the Nokia manufacturers
One of the main drivers that have driven Nokia manufacturers into globalization is technology. The core business of this organization is based on the modern technology mainly information technology. It manufactures cell phones in which a lot of technology is required. For Nokia manufacturers to be able to sell its cell phones and other products it manufactures, technology is a chief driver without which it cannot trade in the global arena. Through the internet technology, the Nokia manufacturers are able to communicate with their overseas agents and distributors concerning various aspects of the international market. It is also possible for the multinational organization to use the same technology and advertise its products both locally and in the international markets. In addition, technology has eased the means through which the Nokia manufacturers are paid for their products sold in the overseas markets as well as making payments to their overseas agents. They transfer funds electronically and this increases the pace at which money is transferred from one location to another (Kim, 2004).

International commerce and markets are drivers of globalization for Nokia manufacturers that are closely interrelated. Through the markets located in overseas nations, the Nokia manufacturers are able to participate effectively in the international commerce. Without international trade and overseas markets, it could not have been possible for this multinational organization to participate in globalization in the manner it does today. Trade has been one of the major driving forces behind the great performance of Nokia manufacturers in the international markets. The Nokia manufacturers could have hardly achieved its objectives by trading only in the local market. There was therefore, need to look for other markets in other nations especially where the level of technology is much lower and cell phones are not manufactured locally (De Quiros, 2004).

Competition is yet another driver that compelled the Nokia manufacturers to trade internationally. Increased competition between Nokia manufacturers and other cell phone manufacturers locally made the former to consider going global. Local competition meant that the Nokia manufacturers had to share a small market with its competitors. Essentially, this meant that the organization had to receive less sales revenues and hence less profits. They therefore had to join the global market in order to trade in a larger market and thus receive more revenues and profits. Again, increased competition in a way forced these manufacturers to manufacture phones of a high quality which would eventually command a notable market share in the international markets. Competition thus accelerated the pace of globalization for the Nokia manufacturers (De Quiros, 2004).

Risks linked to globalization
Even though globalization has brought about several benefits for the Nokia manufacturers, it has also resulted into several risks and threats for the company. One of the greatest problem that is faced by Nokia manufacturers today is the manufacture and flooding of international markets with counterfeit Nokia cell phones by unscrupulous manufacturers and organizations. Counterfeits are usually similar to the original products from the genuine Nokia manufacturers, but they are usually of a low quality. The introduction of counterfeited Nokia products into the international markets has greatly affected the reputation of the Nokia manufacturers as consumers of these products are usually disappointed when they purchase counterfeited products and therefore do not receive the value for their money. As a result of this problem emanating due to globalization, the Nokia manufacturers have employed a lot of resources in the fight against counterfeits. Such measures increase the costs of operation thus lowering the profit margins for the multinational (Kim, 2004).

Increased globalization has also forced the Nokia manufacturers to employ agents from several nations indirectly. It is not in all cases when such agents share the mission and vision of the Nokia manufacturers. There are several instances when the agents operating in overseas nations conducts business on behalf of Nokia manufacturers but do not follow the vision and mission of the Nokia manufacturers. In most cases, such actions end up harming the reputation of the multinational company in the overseas nations. It is usually very difficult for the Nokia manufacturers to follow closely the actions of each and every agent in the overseas nations. Even if they will finally be aware of such practices and take action, it might be too late and damage might probably have been made (De Quiros, 2004).

Importance of cultural sensitivity and ethics in globalization
Cultural sensitivity is very essential as far as globalization is concerned, demand of several goods and services are greatly affected by the peoples culture. Therefore, when a firm is going global, it has to be very sensitive to the culture of the people it intends to sell its products. Whereas in some cultures a certain business practice or service or good might be warmly accepted and thus be traded freely, in other cultures it might be totally rejected and the firms reputation greatly impaired in such a market. By being sensitive to peoples culture, it becomes possible for firms to modify various products they produce so that they can be suitable for that particular culture (Kim, 2004).

Ethics are also very essential for a business to thrive especially in a new environment. In globalization where corporations are carrying out business in overseas nations where they are less known, it is very crucial for them to ensure that all their business practices are ethical. The markets in such nations will in such a case gain confidence on the corporation much faster and thus do more business with it. In this respect, it becomes much easier for the corporation to be established in the overseas nations and thus end up commanding a larger market (Pawlikowski, 2007).

Conclusion
As technology, competition, international trade and markets increase, so is globalization as they are the great forces behind it. They have greatly enhanced the pace of globalization and the volumes of goods and services being traded in the global arena. Nokia manufacturers have extensively used these drivers to exert its position in the international trade and have therefore increased its revenues and profits substantially. It has however faced various challenges due to globalization and the greatest of them all is counterfeits, which have destroyed its reputation.