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Globalization

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7 views

Globalization

Uploaded by

kinyua
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Running head: GLOBALIZATION 1

Globalization

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GLOBALIZATION 2

Globalization

The impact of technology growth is evident in almost every facet of human activity. The

business docket is among the most notable facets, whereas international and local businesses can

distribute their product worldwide. The latter depiction arises from globalization. Even though

globalization has varying definitions, the most compelling definition holds that globalization is

unrestricted movement of goods, services, information, technology, and cultural exchange

amongst nations and consumers. The open transactions take place through different relationships,

businesses, geopolitics, and technology to travel culture and media. Despite its importance to the

business world, most people do not notice the effects and benefits of globalization in the business

world.

Even though business analysts associate globalization with increased business conflicts and

societal controversies, it also exposes business entities to many opportunities and promotes

economic growth. It can thus be argued that globalization is a priority for companies. A business

entity's success depends on its ability to expand its niche and scope of customers. Globalization

is the key through which business entities can explore international expansion. Upon achieving

the required niche of international expansion, companies find more customers, suppliers, and

partnerships (Ettenson & Klein, 2000). In addition to enabling companies to expand their

customer and supplier base, globalization lowers manufacturing costs. Manufacturing costs in

developing countries are lower than the cost of production in developed countries. Moreover, by

allowing business entities to import raw materials, companies realize a stable supply chain that

ensures a smooth flow of goods.

Globalization exposes a business entity to opportunities outside their home culture.

Globalization presents companies with an opportunity to differentiate their products in


GLOBALIZATION 3

accordance with customer demands. Irrespective of the noted benefits, globalization bears

negative impacts on companies. Business transactions across borders subject companies to tariffs

and additional exports. Moreover, legal compliance is a major setback affecting companies in the

era of globalization (Thomas, 2006). The world-system theory argues that globalization does not

constitute a new phenomenon because it is a process of spreading capitalist economies across the

globe. Even though the latter argument is true, globalization is changing the global business

environment. This is because globalization has seen the introduction of new products in

marginalized markets and changed the life-cycle of production where customers can enjoy an

even flow of seasonal products.

The causal effect relationship between company culture and globalization efforts is

inverse. This implies that companies adopt corporate culture from globalization efforts. For

example, globalization would significantly impact business entities by incorporating workers

from varying cultures, values, beliefs, and ethnic backgrounds. The positive impacts of

globalization on companies outshines the adverse impacts, an indication that globalization is

good for companies

Global companies from varying jurisdictions adopt organizational culture from their

mother countries. Working for an American global company is thus different from working for a

French, Chinese, or Korean global company. For instance, while an American company adopts a

decentralized management approach, French companies may adopt a centralized management

style. Cultural intelligence is a crucial skill in the era of globalization because it enables

companies to navigate the huddles of diverse work environments. An individual or business

entity can exploit the advantages of cultural intelligence through cross-cultural communications,

investing in cultural awareness and sensitivity, and cultural intelligence training.


GLOBALIZATION 4

References

Ettenson, R., & Klein, J. (2000). Branded by the Past. Harvard Business Review, 78(6), 28-28.

Thomas, S. (March 8, 2006). Meet the Losers of Globalization. Global Policy Forum. Retrieved

from https://archive.globalpolicy.org/globalization/cases-of-globalization/28096.html

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