Globalization and the World Economy

Globalization can be seen as reduction in barriers between countries. Globalization has opened the world market for international trade. The movement of globalization have contributed to the spread of knowledge, culture, technology, and information across borders. The increasing role international expansion across border has also increased the focus of multinational corporations to international business strategies. Organizations today in developed nation or in developing nation are going international due to increase in competition. They want to expand their limits beyond local region. Competition in domestic market and pressure to expand the business are the few reasons for the globalization. The following are the few

Globalisation is the internationalization of trade and often forces businesses to adopt new strategies for operations to suit different cultures and economies. The often easily saturated domestic market has triggered many large

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,

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.

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.

Compared with creating opportunities, globalization inevitably brings some challenges as well. Some of them are already evident, and some have

Globalization offers industries many ways to increase their profits. Since businesses and corporations have access to a wider range of potential clients, they have a chance to increase profits. Global competition also

Globalization refers to the establishment of worldwide operations and the development of standardized products and marketing. Companies are pushed to go global due to regional trading blocks, declining tariffs, the opportunity to open up new markets, and to take advantage of the information technology boom. E-commerce, in particular, has produced a commonality of taste worldwide and permitted instantaneous global marketing possible. Globalization has fostered and been aided by strategic alliances of rivals, suppliers and customers. The drawbacks to globalization are the riskier nature of going global due to the divergent needs of different cultures, the loss of a company's identity with its home country, a loss of flexibility and responsiveness, as well as the neglect of the need for differentiated products. Regionalization, then, would be less risky, more manageable, and have the ability to take advantage of local

Considering how business is conducted by organizations of today’s era, expanding consumer base, sales, profits, and international relations have become more of an interest. Competing on an international basis has allowed companies to expand in various dimensions, in which organizational leaders have become more receptive to in order to either become and/or remain competitive. Global expansionism can provide many values from creating employment opportunities, maximizing sales/profits, fluctuating supply and demand, and importantly mitigating economies risk from suffering from any depressive state. Global expansionism is not a facet that businesses should just liberally enter as there are threats and opportunities with any venture.

The first topic to be discussed is the idea of globalization. Merriam Webster online defines globalizing as “to make worldwide in scope or application.” Globalization is an important aspect in expanding an organization. Swanson and Holton (2009) state “Multinational companies are taking advantage of economies of scale and scope, proximity to markets and suppliers, and differences in the natural, political, and human resource-related infrastructure in countries around the world in order to achieve and maintain competitive advantage” (p. 421). It is more beneficial for companies to expand globally than to try to continue increasing profits just within their country. Eventually, they will reach a maximum profit that they can make unless they decide to globalize their organization.

Globalization has become one of the most progressive processes our present day world has seen. It has propelled the world into great eminence and productivity with its many advanced characteristics and effects. This process is essentially the global expansion of integration and interdependence between countries with a standardized foundation. This process has allowed for people, trade, and information all over the world to be connected more than ever. With the world’s dependence on the outcomes of globalization such as trade, international institutions, and technology, globalization is nowhere from dying down, but rather it is a tidal wave that is taking over the world.

Globalization has been imperative for sustenance of the companies and countries across the spectrum. Growth of free trade has caused changes not only in one aspect. It has brought changes in all the endeavors of people across society. It has been said that globalization is the process of international integration that arises from interchange of world views or products or others aspects of culture (Alon, Jaffe, and Vianelli, 2013). It cannot be delineated to any one aspect. It has caused a number of positive growths across the countries and has caused improvement in the quality of life of the people. However this aspect of globalization is not perfect. There are some inherent gaps and vulnerability to this aspect of

When we think of globalization historically, should we apply it within the frame works of archaic, proto and modern? A. G. Hopkins who wrote Globalization in World History tends to think we should. He defines archaic globalization as before to the industrious revolution and the creation of the modern state prior to 1500. For Hopkins, this time period planted the seeds of what would become the proto period. In proto-globalization, from 1500-1800, arose the beginnings of the state and the dilation of the global economic system by increased efficiency in revenue exploitation and the revolution of military fiscalism. Lastly, modern-globalization began to emerge in the mid 1800s to the mid 1900s. What defined this period separately from proto global periods was the ascent of the nation state and the aggrandizement of industrialization.

One of the most important decision that any company must make is whether to globalize and participate in globalization or not and operate solely with the home country’s market. Some companies may not want to go international because of the huge market share in the domestic market and/or they may not want to learn and adapt to entirely new laws, rules, and regulations imposed by the international market. At the same

He goes on to imply that business must make global strategies that would involve making investments in as much countries as possible. Rajdeep, Murali & Robert (2008) agrees with Tallman, as he extends his view that these strategies must become more flexible and effective to comply with needs of the changing environment.