The Globalization of Professional Business-Samples for Students

Question: Write a report on Global Business Environment. Answer: Introduction. Over time, the way of doing business has changed immensely due to effects of globalization and globalism. Handling globalization effectively can help to develop a countries economy and assist in sustainability development. Poor handling of globalism and globalization can damage thriving activities because it has disadvantages. Globalization is defined as the process of integration that enables free movement of people, ideas, capital, goods, services technology, and information. Globalization has been brought about by advancements in transport means and telecommunication facilities (mcmichael, 2013, p.1340). Globalism, on the other hand, refers to planning economic developments and foreign policies in an international way. This report is written to highlight globalization and globalism and their effects in the business environment, the process of international integration, challenges facing globalization and benefits and risks facing global business environment. The process of international integration. There several factors that have helped in promoting international integration. Some of the factors include; Transport, information technology, and communication. The revolution of transport and communication modes and means has promoted globalization to a higher extend. Transport revolution which has led to the development of jet, airplanes, steam ships and other has enabled individuals to travel all over the world (Jaumotte, et al.2013, p.290). This has helped to bridge the space between nations and also reducing the time spent moving from one nation to another to carry out economic activities. Information technology revolution has facilitated easy sharing of information and ideas. This led to spread of innovative ideas that helped to promote globalization. Industrial organization. Advancement in technologies has enabled organizations to operate efficiently. This efficiency led to the growth of firms and enabled them to expand their operations to other nations. The process of hiring professional to work in these firms has also immensely influenced globalization. The growth of firms enables them to cross boundaries to look for a market for their goods and services (Kong, 2013, p.280). Exporting of the surplus firm produce has also contributed to globalization process. The industrial organization has also led to the growth of multinational companies. These companies set up branches in different countries and this help globalization process. Technology. Advancements of technology in some countries has also resulted to globalization. This is because people from under developed countries move to developed countries to gain and increase their knowledge in certain technologies (Ferguson, 2014, p.270). Developed countries regarding technologies export their high-tech products to other nations which are not able to produce their products. This process promotes international trade which supports globalization. Political matters. Political leaders play a great role in promoting globalization. Political leaders are responsible for developing regional agreements that help in the free flow of goods, services, and labor. The regional integration has led to developments that foster globalization such as common currency (Kittel and Winner, 2005, p.280). This integration enables labor force to cross borders. This enables individuals to gain employment in other nations. Regional integration also promotes and regulates the level of globalization by determining the amount and type of goods to be exported to other countries. Thus political integration helps to promote globalization. The formed trading blocs help to reduce national barriers that promote international integration process. Reduced tariff barriers. Removal of trade barriers has resulted to free movement of products and services from one nation to another. This enables countries with surplus goods and services to be able to export to other countries, and this has helped to promote globalization (Dubois and Duquesne, 1993, p.40). Removing national trade barriers has promoted free movement of labor which in turn has helped in the international integration process and global trade. Benefits of globalization. Globalization has proven to provide a lot of benefits in global business environment. Some of the benefits include; Economic benefits. Globalization has enabled movement of goods and products from one state to another. This has helped to increase trading activities that have helped to improve economies of many nations (Izberk-Bilgin, 2012, p.680). The free movement of goods also enables nations with limited resources to have access to products which they are not able to produce. These products have enabled the countries to improve their citizens standard of living. Globalization has also helped to improve specialization. This allows nations to produce products and services which they have an absolute advantage or comparative advantages. This leads to efficiency in utilization of resources as specialization enables governments to manage resources well (Shastry, 2012, p.290). Specialization also has led to the production of high quality goods that can be exposed to other nations. Specialization has also led to the cooperation of nations as they rely on each other for some products. Specializations enable nations to focus on their strengths, and this has led to improved economies. Political benefits. Globalization has enabled many nations to enter into cooperation agreements which will foster economic growth. This cooperation between nations has helped to stop international wars and conflicts that hinder economic growth (Artz,and Yahya, 2012, p.1). Globalization enables coming together of political leaders as telecommunication and transport facilities have made the world seem so small. Globalization has helped to prevent dictatorships in many nations. This has enabled many citizens to exercise their democratic rights that foster good governance. Cultural and ethical benefits. Globalization has enabled free movement of people. Transport and telecommunication revolution that has makes the world seem so small. This enables individuals to explore different cultures. This has led to exposure to many cultures which has enabled people to be exposed to international music, art, movies, and religion (mcmillan, et al.2014, p.20). Globalization ha also brought about ethical benefits. These benefits have led to creating awareness on human rights that has led to addressing human injustices in both developed and developing nations. This has led to the growth of civilization that has promoted respect for other peoples rights. The spread of technology. Technology developments were advanced in developed countries only. Due to globalization, developing countries were able to have access to this developed technologies. Globalization led to spread of ideas and information that led to technology advancements to spread all over the world (Mishkin, 2009, p.190). Technology has been essential in facilitating global business as it has helped in the production of quality products with much efficiency. Globalization and globalism challenges in the global business environment. Though globalization brings a lot of benefits in different nations, it has faced many challenges that hinder the process of international integration. The challenges include; Political challenges Investors who invest in other countries through the aid of globalization find doing business hard due to the government taking actions that do not favor investing in their countries. The government sometimes fails to take any action when that may correct some aspects affecting the performance of business entities (Chatterji, et al.2013, p.130). The threat of nationalism has been the largest political threat to global business. During economic challenges, governments use various forms of countering the risks such as exchange rate control and even imposing tariffs that hinder the free movement of goods, services, and labor. Such actions impede globalization which affects global business environment. Civil wars and post-election violence affect the global business environment as investors and organizations will be afraid to invest in such countries for fear of loss of lives and properties (Law, et al.2014, p.220). The assassination of political leaders championing globalization process has happened several times, and due to such cases, global business suffers a huge blow as globalization process may be affected by the policies of the assassins. Corruption practices have also affected the global business environment. This is because unethical government institutions affect how business is done as they control the process of awarding contracts through illegal business dealings. This discourages investors, and it affects global business. Cultural challenges. Different countries have different cultures. Some cultures promote globalization process while others affect the global business environment. Some cultures believe that leaders should hail from a certain community and this cannot be changed. The leaders in power may not support globalization, and this remains the case as the government cannot be changed (Huang, et al.2014, p.40). Such leaders engage in corruptive practices that hinder the development of global business environment as they hinder investors from investing in their countries for fear of civilization that is brought about by globalization. This poses a threat to their leadership position. This kind of cultures hinders globalization process. Some cultures do not allow the taking of risks or any form of uncertainty. This hinders business process because business is all about taking risks. This affects the global environment as the people in such countries cannot engage in some business activities (Asongu, 2014, p.350). This type of cultures in different countries impose frameworks that must be followed by everybody engaging in business activities in that country. Such rules prevent investors and business people from uses practices employed by other stakeholders in the global market, and this affects the global business environment. Technological challenges. Advancements in technology have helped international economic integration to a greater extent. Due to the spread of ideas, innovation process led to the development of different technologies by various countries. Such countries made countries to be self-reliant as the technology has enabled them to produce what they did not produce initially (Knickerbocker, 1973, p.8). This affects globalization because due to self-sufficiency, there will be less movement of people and goods and services from one nation to another. This will affect the global business environment as people and organizations will prefer to conduct business operations in their own countries. The challenge of use of different currency and accounting practices. Use of different currency has negatively affected globalization process as this affects transaction activities where two nations using different currencies are involved. Due to exchange rate controls, nations with different currencies will not be able to engage in business activities that promote globalization process (Mohamed and Lashine, 2003, p.10). Different accounting policies adopted by different nations also affect globalization process as the lack of uniformity in accounting practices gives some nations undue advantage while hurting the other party. This affects foreign investment activities and this, in turn, affects global business environment and globalization. Social and moral responsibilities of globalization and globalism. Globalization should interfere with other peoples cultures. Globalization process should protect the set laws and regulations in different countries. This will enable globalization to be embraced by countries resisting globalization for fear of erosion of their culture. Globalization should ensure its concern for consumers, community, and shareholders regarding being fair and just and also respect their rights (Popescu, 2013, p.170). The moral values of corporations should not be to exploit their consumers, and they should obey and respect diverse ethical demands required from them by different communities. Companies operating away from their territories due to globalization has a moral duty to respect the legal frame works in other communities. Globalization should also ensure there is rising demand for corporate responsibility which will prevent organizations from exploiting consumers. Global management process. Management of global business environment has to start by ensuring all trade barriers are removed so that there can be free movement of goods and labor between nations so that international trade can take place without hurting some players(Thamhain, 2013, p.30). This is done by setting laws and regulations that regulate the global business environment. This helps to minimize conflicts that may occur and affect the global business process. Globalism and globalization in developed countries. Developed countries have benefited from globalism and globalization and some of the benefits include; Large market. Globalization has enabled developed countries to export their products to other countries hence creating an international market for their products and services. Creation of job opportunities. Free movement has enabled job seekers to move to developing nations and secure job opportunities which have led to improved standards of living. Creation of strong trade ties. This has led to improved trade terms which have contributed to improving economic conditions. The trade ties have also ensured corporation that fosters international peace. Promoting exports. Due to globalization and globalism, there was an increased market for the produced products in other countries (Caniato, et al.2013, p.290). Technology that resulted due to globalization has enabled the production of quality goods that promote exports in the developed countries. Disadvantages of globalization and globalism in developed countries Negative impact on taxation. Corporations in developed countries have shifted their businesses to other nations which have low tax rates (Clark, 2014, p.4). This causes developed countries not to collect the needed revenues as corporations try to exploit tax loop holes in other nations. Globalization and globalism in developing countries. Globalization has enabled developing countries to experience some benefits. The benefits include; The spread of technology. Globalization has led to developing countries having access to modern technology (Kindstrm and Kowalkowski, 2014, p.100). The technology has enhanced innovation process which has led to specialization by some countries. Job creation. Due to globalization, multinational corporations have established branches in developing nations. These companies employ the local citizens. This helps to improve the standards of living of the developing nations. New market. Globalization has enabled developing nations to have access to the international market for their products and services. This has helped to improve industrialization process that led to the production of high quality products for export (Kramsch, 2014, p.300). The exports help to improve the terms of trade of developing nations. Disadvantages of globalization in developing nations. Global management process of the global business environment has caused developing nation to experience several disadvantages of globalization and globalism. They include; Killing local industries. Due to the dumping of goods by developed countries, many developing nations young industries have collapsed (Kramsch, 2014, p.300). This is due to stiff competition from goods from other nations. This has affected the process of industrialization, and this affects economic growth of many developing nations. Erosion of culture. Globalization and globalism have led to the erosion of the culture of many communities in developing countries (Clark, 2014, p.4). This kills tourism and hospitality industry as the cultural artifacts which can attract tourist are destroyed in the process of globalization. This also leads to loss of sense of belonging. Increased dependence. Globalization has led to increased dependence by developing nations as they opt to import the products they dont produce (Clark, 2014, p.4). This leads to deteriorating terms of trade which damage many developing nation's economies. Trade tariffs. Imposition of trade tariffs prevents developing nations from exporting their products to other countries. This affects their foreign exchange reserves and affects their terms of trade (Nicolai'dis, 2014, p.51). Developed nations experience more benefits of globalization and globalism than developing nations. If necessary measures are not taken, developing nations' economy may be damaged to the point of no repair. Advantages of global business environment. Global customer satisfaction. Due to competition, companies have been forced to start producing quality goods to compete effectively with products from other nations (Nicolai'dis, 2014, p.51). Export products are also of high quality to meet the set standards. This production of quality products leads to satisfaction of customers needs and preferences. New market. Globalization has led to opening up of new markets for products and services. Countries can export their surplus products to other nations. The spread of technology has also led to the development of e-commerce which has also created new markets for products and services. Economies of scale and scope Due to specialization, countries can produce different products and services with much efficiency due to comparative and absolute advantages (Nicolai'dis, 2014, p.51). Efficiency leads to the production of large amounts of products that enable countries to enjoy economies of scale and economies of scope. This enables them to save on the cost of production and production of cheap quality products that attract customers in the global market. The spread of technology, information, and civilization. The global business environment enables spread of technology that has helped in the innovation process. Innovation process has led to creative means of producing quality products that compete favorably the global market (Zhang, et al.2014, p.315). The global environment has also enabled the spread of civilized business practices to spread all over the world, and this has improved business transactions all over the world. Risks of global business environment. Competition. The global business environment has exposed young industries in different countries to face stiff competition from well-established multinational corporations (Zhang, et al.2014, p.315). This trend has killed the process of industrialization in many countries due to the dumping of products into other countries by developed countries. The spread of terrorism and erosion of culture. The global business environment has led to the erosion of culture in different communities all over the world. This has led communities to lose a sense of belonging. Global business has also led to spread of terrorism activities that have led to the destruction of valuable properties, loss of lives and instilling fear that threatens business activities all over the world. Economic over dependence. The global business environment has led to increased economic over dependence by many countries. This has been caused by the specialization process that enables countries to focus on production of only a few commodities (Zhang, et al.2014, p.315). In case of disputes that may hinder global business, some nations will suffer, and their economies will decline. Conclusion Globalism and globalization offer many benefits to countries. This has led to the development of the global business which has helped to improve the lives of many people. Globalism and globalization should be well regulated, and this will cripple economies of many countries. The global business environment has led to spread of technology, free movement of goods and labor, created a large market for products and services, the spread of practical business practices and creation of job opportunities. From the report, developed countries benefit more from globalization and globalism than developing countries. This has been so due to various practices such as developed nations imposing trade tariffs on developing nations product, dumping of their surplus goods to developing nations markets hence killing their industries and in the long run industrialization process. The global business environment has enabled many countries to be exposed to sound business practices and elimination of unethical cultures and practices in the business environment. References Artz, L. and Yahya, R.K., 2012. Globalization, media hegemony and social class. Globalization of Corporate Media Hegemony, The: Evaluating California's Imprisonment Crisis, p.1. Asongu, S., 2014. Globalization (fighting), corruption and development: How are these phenomena linearly and nonlinearly related in wealth effects?. Journal of Economic Studies, 41(3), pp.346-369. Caniato, F., Golini, R. and Kalchschmidt, M., 2013. 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