Globalization and the World Economy

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

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 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.

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

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,

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.

There are many opportunities available for companies willing to venture into new, international markets. Reaching more customers and therefore, turning a larger profit are two fairly obvious reasons for companies to consider global expansion. However, the potential benefits do no end there. Expanding to international markets can hold less obvious, yet extremely beneficial appeals such as access to new and different talent pools, grander output requires great advances in efficiency, and international expansion can, in some cases, aid in “future proofing” the company.

The forces of globalization are generally credited with the major role played in increasing the access of organizations to countless resources. Due to market liberalization for instance, large corporations are able to import cheap resources from various global regions and as such patronize the market through price leadership strategies. Nevertheless, another crucial characteristic of globalization is that it allows economic agents an incremental access to larger customer markets. This virtually means that manufacturers get to sell their products to numerous global regions and exponentially increase their revenues.

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

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

In today’s world, with a few notable exceptions, nearly everyone in every region of the world has access to the same products, information and services. A long-distance relationship is no longer so distant, since each party involved in the relationship can communicate through Skype, Facebook or through any of the vast amount of social media available. A person in Easter Island, one of the most remote inhabited islands in the world, can go to the other side of the world and travel to Canada. An economic crisis in Argentina could affect the economic landscape in Brazil. A person in Chile or Peru can buy an Abercrombie and Fitch t-shirt because this transnational corporation decided to expand its market to developing countries, or as you might prefer, to emerging economies in South America. Although many of these examples might be trivial, these are the consequences of globalization.

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.

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.

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.