Global Organization And Its Impact On The Global Economy

One of the core tenents to running a business is for a business to make money and to increase in size. As a result of that engaging in activities that increase a businesses capability to make money and increase its size is of great importance. Furthermore, as a result of that focus on increasing the sizes of businesses, globalization has furthered the spread of business. Globalization influences the world economically,

Businesses today operate an environment that differs greatly from anytime millennia, centuries or even decades ago. The pace of businesses has increased exponentially with the continuous improvement of information technology, telecommunications and geolocation supported by satellites and progressively more efficient modes of transportation and mechanization. The ability to move products globally overnight, increasing levels of automation, and collaboration instantaneously via virtual means has forever changed and reduced traditional barriers businesses face while creating a myriad of new challenges, risks and opportunities.

I feel that transnational cooperation’s have had a large impact on globalisation. A transnational corporation (Multinational Corporation) TNC is a corporation or enterprise that manages production establishments or delivers services in at least two countries such as Coca Cola and Nike. Very large multinationals have budgets that exceed those of many countries. Multinational corporations can have a powerful influence in international relations and local economies and play an important role in globalisation. I feel that the economy is the most significant motivating force

Globalization may be defined as the integration of the world 's people, firms and government. In the modern context, globalization is usually the result of closer ties in international trade, known as bilateral trade agreements. The WTO and NAFTA are two examples of such bilateral trade agreements. With such agreements, cross-country investment increases. This increase in investment is aided by the increase in information technology and communications, which has undergone a significant advancement over the last two decades with the rise of the Internet and mobile telephony (Green, 2013). It is important to the business to expand; global expansion and globalization would a positive business decision to complete in this process due to the strategic goals and objectives the company possesses. Healthy growth can be accomplished by globalization of specific areas selected and determined through research of market and development of these areas outlined within.

Nowadays, globalization has a great impact on companies, their internationalization process and how they are seen in the different markets where they have presence. Globalization may affect the company in almost every aspect.

The business activity of companies in most industries is affected by the process of globalization. The need of globalization was determined by the necessities of companies that had to address markets in other countries in order to expand their business. In addition to this, they had to reduce their costs by hiring employees from other countries, and by outsourcing some of their processes to other regions.

Globalization promotes the concentration and the emerge of large multinational companies, with the possibilities of selling its products worldwide and reducing production cost through exploitation of economics of scaly causes that small businesses reducing their sales potential, this can result in the reduction of global competition and that one of a few companies dominated the market.

The rapid pace of Globalization has led to a change in the global economy during the past several decades; it is believe that factors such as trade liberalisation, access to cheaper labour and resources, similarity of consumer demand around the world, and advances in technology and communication has widened the market of consumption, investment as well as production on a global scale. These globalization driven factors created new challenges and global competition for businesses around the world thus as a response many companies decided to expand their operation across national borders in order to be competitive. A company that operates their business in at least one country other than its country is called Multinational

In their introduction to the chapter "Why International Organisations Matter," which was contributed to Business and the Politics of Globalisation: After the Global Financial Crisis, authors Xu Yi-chong and Patrick Weller begin the rhetorical defense of international organisations (IOs) by providing a review of recent global crises, and describing the various roles that global groups like the World Bank, the International Monetary Fund (IMF), and the International Panel on Climate Change (IPCC) played in addressing these most complex of dilemmas. The work performed by both the IMF and the World Bank in mitigating the disastrous effects of the global financial crisis is presented as a prime example of the efficacy of international organisations, as is the authoritative Report issued by the IPCC in response to mounting evidence in support of climate change as a demonstrable scientific phenomenon. As Yi-chong and Weller state unequivocally, "globalisation could not have taken place without the desire of states to pursue cooperation; neither could it have happened without IOs acting as effective facilitators of that cooperation" (2010), because communication on the international scale often requires an objective third-party for purposes of negotiation, mediation, and conflict resolution.

In the present time almost all companies operate in a global environment or there in the scope of expanding at an international level. This globalization of business appears to be an ongoing process, but it has its own hindrances and opponents. Critics suggest that globalization leads to the exploitation of developing nations and workers, causing harm to the environment in quite many cases, and increased human rights abuses/violations. To add that, the critics believe that globalization primarily benefits the wealthy and widens the gap between the rich and the poor. Whereas on the other hand the supporters of globalization argue that open markets lead to increased standards of living for everyone, higher wages for workers worldwide, economic growth and development in impoverished nations. There are many large corporations which are multinational in scope and will continue to face issues be it legal, social or ethical coming into context because of the globalization.

Globalization is the process of international integration caused by the exchange of products, ideas and other aspects of the culture in a global scale. Scholars still disagree whether the globalization caused the inception of multinational corporations or vice versa. Although globalization is the phenomena which belongs to the modern era, the earliest samples of multinational corporations could be traced back to 17th century Dutch and English India companies. Therefore it is generally believed that multinational corporations are both a cause and a result of the globalization process. The globalization has manifested itself in the interdependence of national economies and financial markets. There are different dimensions for the growth of multinational corporations in globalization era. The economic dimension of the multinational corporation growth can be presented through the numbers; including the fact that approximately 33% of the world trade consists of

Competition, typically the most powerful external force, is increased by the advent of globalization. The number of companies and the number of countries where these companies operate and the way governments are dealing with the impacts of globalization is accelerating. The interaction of changes in government policy and business innovation has actually made globalization even faster. If a company does not become a global, it would simply be shut out of new markets. The reasons for the turmoil are numerous: a sputtering economy, increased global competition, the implementation of new technologies that displace jobs, the deregulation of certain industries, and the general

Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become

As trade increases hyper-competition grows forcing organizations to go global. By a company going global it requires them to rethink strategy and reform (Ananthram and Pearson, 2008). Global organizational structure is the way a company aims to merge local preferences with global strategy. The definition of global strategy is “strategic choices that have the characteristics of being globally uniform or integrated,” (Yip et al., 1997) such as standardization of products, uniform marketing, and competitive moves, but all globally (Townsend et al., 2004; Zou and Cavusgil, 2002; Bayraktar and Ndubisi, 2014). Global strategic strategy is a way to adjust to globalization. Globalization is “the economic and social process by which economies and communities grow inextricably interdependent “(Jhirad et al., 2009). The recent financial crisis (Das, 2010), large amount of poverty, and climate change are all problems that show how the world is globally connected because all countries impact each other (Jhirad et al., 2009).

It is usual today to hear of economic globalization referred to as an immensely valuable and modern process. The implication is that, as nations more fully engage in interactive trade and financial cooperation, benefits accrue to virtually all as the markets inevitably expand. Importantly connected to such a viewpoint is the perception that the expansion of the global economy must produce desirable results for those nations in various stages of development; in plain terms, the interaction on the global scale must both infuse such countries with capital and significantly promote the internal growth necessary for them to engage more fully in the international currents of finance. To some extent, there is validity to this; global integration does encourage accelerated development, and particularly in regard to trade. At the same time, there is as yet no conclusive evidence that the integration of developing countries into the global economy uniformly produces benefits for those countries. The research thus far indicates that individual national variables, as will be discussed, are critical factors, and that trade openness may be more advantageous than financial openness (Presad et al 8). As the following will investigate and affirm, the unique characters of developing nations themselves potently affect how integration into international markets goes to their further development. Ultimately, while such integration is seen to yield important benefits to the countries