Impact of Globalization on engenireeng industry Essay

Impact of Globalization on engenireeng industry - Essay Example It is evident from the study that the â€Å"new globalization of engineering† entails a proliferation of specialized firms across the globe. It seems as if the world has been undergoing a transition in its infrastructure and the traditional organizational boundaries have been expanding far beyond the concepts of physical proximity. The international trade barriers have blurred and the rapid advancement of technology and its geographical mobility has enabled the engineering industry to capitalize on low cost models and market growth in emerging economies like India, China and Brazil. And this transition is still on-going with its ramifications yet to be explored. This very new concept has been coined as â€Å"unlocking† of the organizational bonds. Whereas traditionally the manufacturing was bonded to the IT infrastructure within the same organization up until early 1990s, the new millennium saw this unlocking of these activities, keeping the core competencies unlocked t o attain competitive advantage. Globalization then can be described as augmentation of international integration of markets; an interconnectedness of cross border political, cultural, economic, environmental, and technological issues. Freidman describes globalization in respect to three eras; the era from 1492 to 1800 that marked America’s discovery by Columbus, the second era from 1800 to the new millennium, which was majorly characterised with dispersement of markets for cheap labour and resources. And the new era of globalization is the present era that has made the world shrink even further. (Giachetti 2010). Hence, companies have faced the pressure to make internal decisions consistent with global competition and incorporate these decisions into their business strategy. The engineering industry has undergone these changes in terms of investing in research and development, innovation, cost savings and making the production processes more efficient in order to create a com petitive edge in this highly competitive industry (Laudon 2007). Aims of the Study The aim of this study hence is to analyse the impact of globalization on the engineering ind