What is globalization? Globalization is a conceptualize of a process which can reflect a
transformation in the dimensional organization of social relations and transactions, that
link between countries with countries on flows and networks of activity, trading, and
interaction (David Held, 1999). Another definition for globalization is it can understand as
a phenomenon of evolves to international trade and connectivity across national
boundaries and business activity between countries with others countries (Ian Brooks,
2013). Globalization concerns many areas, not only in economic activity, but also taking
consideration of political, cultural, environmental, security issues and human thinking that
related with interconnectivity of countries. Nowadays, in 20th century development with
high technology, cost of transportation and communication become cheaper, these make
globalization have more potential to become available to virtually (Gergen, 2013). At the
same time, due to increase of essential need of human, the demand increase and expanding
market and also cost of labor and materials become lower, also an factor push towards
globalization (Gergen, 2013). These make many organization and companies expand their
business out of their own country and get to others countries, for example NESTLE, an
food and beverage company form Vevey, Switzerland, now expand to about 86 countries.
Globalization gain advantages for the business and country. One of the advantage is
globalization can increase the international competition, stimulate economy of country.
Besides, globalization also can help to improve the technology by bring or exchange the
new idea of technology. This is great especially for developing country (Ian Brooks, 2013).
Although globalization concerns many areas, it pays more focus on discuss about
international trade and international connectivity. International trade is relating with
multinational enterprises (MNE). Multinational enterprises are enterprises that run their
business by producing or delivery goods and services from one country to another country
(European commission, 2013). With globalization by improvement in technology,
communication, and transportation, multinational enterprise be able expand their business
to others countries, this bring out the effect of multinationals in increase the opportunities
of employment, provide an entrepreneurial infrastructure especially for third world country
(Gergen, 2013).
Apart of this, multinational enterprise with international trade bring out benefit for
countries that is help to push forward technology development of the country, like
organization from US launch their business in developing country, Indonesia. With this,
Indonesia gain advantage of learn and improve their technology development (Ian Brooks,
2013).
At the same time, stakeholders of the multinational enterprises also gain the benefit from
international trade. Stakeholders are a group of people are supply organization or
enterprise with theirs productive resources and have interest in how the organization
performance (Business Ethics and the Legal Environment Of Business , 2013). With
international trade, multinational enterprises are able to promote their idea of business and
the sustainability done by the enterprises. These are helpful in enhance reputation of
enterprise. Besides, people will also confident with the company product, if the enterprise
is multiple enterprises that have business in many countries. As a result, enterprises can
build up strong goodwill and famous brand name, there will have more people know more
about the enterprises and help to increase the profit of enterprises.
Another benefit gains by stakeholders from international trade by multiple enterprises
which are gain more knowledge of culture and more choices (Trade, foreign policy,
diplomacy and health , 2013). When a multiple enterprises expand their business activity
to other countries, they will bring their own culture to the countries that they expand. For
the countries that come in with multiple enterprises, it is a new idea and culture for their
local people. They can learn and know more knowledge, and improve their living life
style. In addition, those people can have more choices to satisfy their demand and need.
Although globalization has many defensive points to support it carry out many advantages
for people, however it has drawback and argument on behalf of globalization, which mean
globalization has also weakness and carry some issues (Gergen, 2013). From the point of
local countries, the idea of globalization seem bring out invasive and insensitive to the
local community so with customs. There strong attempts about ethical guideline, which is
concern about human right and environment. Critics point out that latter-day form of
globalization, driven by economic power, with promotes the supremacy of Western culture
and enterprise; use and exploits cheap labour in the poorer countries due to those people
lack of knowledge; carry threats to environment of the country; and destroy foundations of
democracy and social stability by subjecting national political institutions to forces of
economic change beyond their control (Lerche, 2013). When look deep into it, it does also
carry out critic to some multiple enterprise. The goals of enterprises are to maximize profit.
Some of the multiple enterprises will neglect the others thing concern with the countries
they went, like environment and human rights. As a result, these will make ethical issues
case happen. And also, the countries which get in multiple enterprises will face some
ethical challenges.
These critic and issues from above, not only because of the problems came from
international trade and connectivity mainly by multiple enterprises; it does involve another
important character which is government. Government also need to pay partly responsible
on those ethical problem carry out by globalization from multiple enterprises. In idea of
globalization, government play a main role, which has a duty to protect the interest of its
people and own local corporate against multinational enterprise. Most of times, these type
