Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Trends and Uncertainties

During 2008, we started generating revenue upon completion of the acquisition of OneWorld Hotel Destination Services, Inc. We acquired all of the common shares of OneWorld for 2,000,000 common shares and a promissory note. In addition, we are seeking to expand our revenue base by adding new customers and increasing our marketing and advertising.

Due to the recession in 2009, the registrant halted the plan to raise extra capital which is for the completion of the online hotel room reservation web site and the expansion of the Hotel booking business. The registrant decided to allocate the majority cash flow to maintain the operation of One World because of the recession in 2009. The officers and directors also agreed not to receive cash compensation for their management work in the registrant including the continuation of the development of the website in-house by the directors, the defraying of marketing, promotion and travel.

While the economy is gradually recovering today, One World currently generates sufficient cash flow to maintain its own daily operation. However, in order to realize effective marketing and promotion, the registrant will need to raise the addition capital through the sale of capital stock in the future. The use of funds would be rationed for marketing and promotion purposes, expansion of the OneWorld operation and working capital needs.

There are several known trends that are reasonably likely to have a material effect on our net sales or revenues alongside our income from continuing operations and profitability.

We expect to experience significant fluctuations in our future operating results due to a variety of factors, many of which are outside our control. Factors that may adversely affect our quarterly operating results include but are not limited to:

- Our ability to develop and complete the hotel booking website.

- Our ability to attract customer to use our web site and maintain user satisfaction;

- Our ability to attract hotel suppliers to provide their hotel rooms in our web site.

- Our ability to hire and train qualified personnel.

- Our ability to resolve any technical difficulties and system downtime or Internet disconnection.

- Governmental regulations on use of Internet as a tool to conduct business transaction.

- Change of customer's acceptance to use Internet to book hotel rooms.

We may also incur losses for the foreseeable future due to costs and expenses related to:

- The implementation of our hotel booking web site business model;

- Marketing and other promotional activities;

- Competition

- The continued development of our website;

- High cost to maintain the hotel booking web site, and

- Hiring and training new staff for customer services.

We cannot be sure that we will be successful in addressing these risks and uncertainties and our failure to do so could have a materially adverse effect on our financial condition. In addition, our operating results are dependent to a large degree upon factors outside of our control. There are no assurances that we will be successful in addressing these risks, and failure to do so may adversely affect our business.

Capital and Source of Liquidity.

Prior to the acquisition of OneWorld, all of Globalink's operating capital had either been advanced by current shareholders or from proceeds for the issuance on common shares.

For the six months ended June 30, 2012, Globalink received advances from shareholders of $1,000. As a result, we had cash flows from financing activities of $1,000 for the period. Comparatively, for the six months ended June 30, 2011, Globalink repaid advances from shareholders of $15,540, resulting in cash flows used in financing activities of $15,540. Globalink did not require as much money for operations this quarter due to decreased operations.

For the six months ended June 30, 2012, Globalink used $45,240 for translation adjustments, resulting in $45,240 used in investing activities for the period.

Globalink did not pursue any investing activities for the six months ended June 30, 2011.

Results of Operations

For the three months ended June 30, 2012, Globalink received revenues of $76,015. We had wages and salary expenses of $64,923 and other administrative expenses of $27,118. As a result, we had a deficit for the period of $16,026.

Comparatively, for the three months ended June 30, 2011, Globalink received revenues of $79,911. We had wages and salary expenses of $60,632 and other administrative expenses of $39,895. We had other income and expenses of $23,788, resulting in a deficit for the period of $44,404.

The $28,378 decrease in the deficit between June 30, 2011 and June 30, 2012 came primarily from increased other expenses.

For the six months ended June 30, 2012, Globalink received revenues of $182,742.
We had wages and salary expenses of $123,229 and other administrative expenses of $56,840. As a result, we had income for the period of $2,673.

Comparatively, for the six months ended June 30, 2011, Globalink received revenues of $142,646. We had wages and salary expenses of $112,826 and other administrative expenses of $65,155. We had other expenses of $6,242, resulting in a deficit for the period of $41,577.

The $44,250 difference between the six months ended June 30, 2011 and 2012 was a result of increased revenues for Globalink for the six months ended June 30, 2012.

We are currently working on the hotel booking website. The initial structure and preliminary functions are done. More work will be required before the site can be used and tested. Actual hotel listings will need to be incorporated.

Management expects sales and gross revenue will grow significantly over the current year volume after the web site is launched. We anticipate that it will not be a straight-line growth pattern but an exponential increase. This anticipation can be realized if we spend the necessary funds in promotion through internet advertising, radio and television clicks and news media advertising. On the whole, the more we direct funds into promotion, the bigger the increase in sales as a return.

In order to achieve our goal, the registrant may seek additional funds. The funds distribution to various sectors will depend on the actual funds raised and on the time needed to raise such sums. The larger portion of the raised funds will be allocated towards marketing and promotion.

Although there are signs of gradual stability, management believes that the affects of the recent economic crisis is a long ways from being over. However, our One World operation has been well-established over the past ten years that we are capable of continuously sustain our existence during the current crisis.
We will survive under future crisis by maintaining a skeleton staff, reduce promotion and advertising to a bare minimum and management officers providing services temporarily en gratis.

Off-Balance Sheet Arrangements

Globalink had no material off-balance sheet arrangements as of March 31, 2012

Contractual Obligations

Globalink has no material contractual obligations.

New Accounting Pronouncements

The registrant has adopted all recently issued accounting pronouncements. The adoption of the accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the registrant.