Extended Essay Zheng

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Extended Essay Which of the forces and drivers of “globalisation” will most impact on the business environment? Zheng Li PARSE 17 16/ 09/ 2014 Word count: 1505 Introduction There is a widespread belief that the world at the beginning of the twenty-first century is changing more rapidly and dramatically than ever before. Generally, many of those changes are also believed to be connected with something called “globalisation”. Globalisation, as David Held(2002) pointed out, is defined as “a shift or transformation in the scale of human…show more content…
He took EU(European Union) as an example and demonstrated that there are three business effects created by EU. First, because of lifting the trade barriers among members of EU, trade is then created in this group. Second, after trade is created within EU, it is more likely that members will divert their imports from non-member states to member countries, even if they are less efficient. Third, as a result of more trade among member nations, their influence over non-member states will increase, therefore other countries, especially small and powerless ones, are likely to combine together to reduce their impacts. Thus, although protectionist barriers have been eliminated between member states within the union, regional protectionism still exists against non-member countries. And this will lead future business grow primarily along regional lines rather than global lines. Cultural Differences Cultural differences between different countries and companies also have great impact on the business environment, which is, slowing down the trend of globalisation in the business environment. Nancy J. Adler(2002) argued that compared with employees who worked for the companies in their native countries, employees of multinational companies experienced greater cultural differences. And when working within multinational corporations, workers attempted to act more like their natives. For example, Based on a study between Germany and America, Fons

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