GLOBAL ENVIRONMENT OF BUSINESS

GLOBAL ENVIRONMENT
OF
BUSINESS

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Globalisation and perception of the people
Globalisation has long term impact on the businesses that are running all across the globe.
Not only it has impacted the businesses but it had deeper impact on the lives of the people.
The impact is both positive and negative. It is due to this the perception of the people have
changed over the course of time (Abazi, Farrington and Huisman, 2010). Globalisation has
provided many opportunities to the people and at the same time it has created bigger
challenges for the people that are unable to upgrade as per the global demands them. In this
essay there will be explanation of the term globalisation and the drivers of it. A possible
explanation of the different attitudes of the people towards globalisation will also be
discussed. At last conclusion about whether the process of globalisation is likely to continue
or not will be provided.
Globalisation is a term that is used for the process of integration and interaction among firms,
governments as well as people all across the globe. It is a process that has converted the
world into the global village. Primarily globalisation is an economic process of integration
and interaction associated with the cultural and social aspects (Villaverde and Maza, 2011).
Globalisation has empowered organisations to cross borders and extend into new markets
which help them in increasing their sales and also improve their growth potential. Large scale
globalisation began in the early 19th century however globalisation got empowered when the
internet technology came into existence. The major benefit of the globalisation is that it has
reduced the cross-border barriers which supported companies in making their business
feasible. Modern globalisation is empowered by data where possession of data has helped the
organisations to make their business more suitable according to the international market
conditions.
There are many drivers of globalisation that has helped the companies to cross borders and
has helped them in targeting people at the global levels. Among the major drivers of
globalisation technology being the most effective one. It has set the base for the modern day
globalisation and empowered people with limited resources to do business in all parts of the
world (Perraton, 2019). Internet technology has given people power to communicate with the
people all across the globe and hence do business operations while being in any part of the
world. What technology has done is that it has facilitated innovation which has revolutionised
different industries. This is because it is the innovation that has helps the organisations to
meet the needs of the people and with the help of internet mediums companies are able to

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understand its feasibility in different markets and accordingly proceed to earn benefits.
Technology has helped the companies to improve the way in which they are dealing with the
customers at the global levels and has empowered the firms to communicate with the people
at the global levels (Martens and Raza, 2010). This could help them in making good relations
with them and hence ensure that their sales growth is on the higher side. Technology such as
social media is acting as a platform to build the brand and also create awareness that could
help in improving the sales of the company. With the help of technologies, companies are
able to do marketing effectively which plays a critical role in improving the business
performance.
Political drivers have also played a crucial role in the development of company’s business in
other parts of the world. Liberalised trading rules and deregulated markets have supported the
companies to do their business across borders more freely. The development of institutions
such as World Trade Organisation and General Agreement on Tariff and Trade empowered
such expansions. Governments all across the globe are attracting more numbers of Foreign
Direct Investments in the country (Martens, Dreher and Gaston, 2010). Apart from this
governments are highly attracted towards the privatisation and have helped the companies to
enter into bigger businesses that are state funded. The development of political alliances such
as European Union has made it further easier for the firms to do business without any kinds
of trade barriers and additional tariffs. At the same time there is availability of skilled
labourers in all the nations which is possible due to global human resource development
program in the firms. At the same time due to improvement in transportation mediums and
easing of the Visa rules, it is possible for the firms to recruit people from other parts of the
world.
Customer demands is another major driver of globalisation which can be understood by the
fact that in the age of technology people all across the globe are fascinated and interested
about different products being available in other parts of the world and hence companies
finds an opportunity for them in the global markets (Biccum, 2015). Apart from this the
network of suppliers all across the globe and development of global marketing channels have
helped the firms to choose internationalisation. Along with this cost drivers have also played
a critical role in the success of the organisation which can be understood by the fact that cost
of the same products are varying from country to country due to different types of costs it is
easier for the firms to go in other parts of the world and gain desired benefits. Since there is a
cost difference in different nations hence profits can be easily generated. This is also true in

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availing the raw materials where companies are availing raw materials from all the parts of
the globe on the basis of quality they require and the cost at which they find it appropriate as
per their business needs and their capacity (Too, Harvey and Too, 2010). This has
empowered the firms to expand their business with smoothness and at the same time it has
allowed the firms to reduce the overall cost of their operations at the global levels.
Infrastructure development is another major driver of the globalisation which has promoted
the expansion of the companies across the borders. Previously due to lack of proper
infrastructure certain kinds of businesses were successful only in the developed nations. The
government’s efforts towards the development of the infrastructure helped the firms to
expand their business in other parts of the world as well (Reese, Rosenmann and McGarty,
2015). Development of infrastructure helped the firms to look at those countries even in
which they have not explored before. Infrastructure related to the communication technology
has also helped the firms to make sure that they can do business in a more organised manner.
This has also helped the firms in setting up collaboration across the borders which help the
firm in learning new things and improving their organisational working methodology
(Thomas and Thompson, 2014). The global partnerships of the companies were also possible
because of the fact that globalisation has provided an environment and tools for the
companies through which they can work together.
There are several positive and negative impacts of the globalisation on the businesses and the
people that are associated with the business. It is due to these impacts people have different
kinds of point of view towards globalisation (Shizha and Diallo, 2015). The possible
explanation about the different attitudes towards the globalisation and free trade expressed in
the case study is due to the fact that globalisation has taken the jobs of so many people that
are unskilled or lesser skilled than the people sitting in other parts of the world. The negative
attitude towards the globalisation is due to the fact that companies can hire people from all
parts of the world and hence the lesser skilled people remains unemployed. At the same time
another major aspect of the globalisation is that it has provided the strengths to the companies
that have resources and capabilities to expand at the global levels. The people that are
attached with these companies often get the chance to grow and due to this they have positive
reputation about the company.
On the other hand the small scale companies that do not have enough of resources are
completely crushed the muscular MNCs that come from other parts of the world. Since they

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have larger amount of resources and capacity to improve hence they are able to take control
on the market and due to this people that are attached with the SMEs have to either lose their
jobs or face other kinds of loses (Michie, 2017). This has created a negative image in the
minds of the people. It is the effect of the globalisation that only one percent of the people all
across the globe have the 99% of the wealth of the total world. This is because businessmen
are getting more and more money due to their expanding control in different markets. On the
other hand poor are getting poorer and due to this people do not like globalisation.
Apart from this another reason for not liking globalisation is the fact that globalisation is
hampering the individual cultures. Due to marketization cultures all across the globe are
developing into common culture. It is due to this people that are attached with their culture
are not able to accept globalisation in the way they should have been. This is highly common
in the eastern world where the western culture is taking on their culture (Chiu, et al 2011). It
is due to this, orthodox people from these cultures are not able to accept the western values
and culture which is promoted by the globalisation. There are many kinds of dresses that have
lost significance in the wave of westernisation that is being promoted by the companies hence
people that were in these business are facing challenges (Gupta, 2011).
It is seen that globalisation has hampered the local entrepreneurial opportunities for the
people that aims to start their business seeking the local opportunities. Since bigger firms
have larger amount of resources hence they are able to grab those opportunities first which
and kills the scope of the smaller firms in grabbing the opportunities in an effective manner.
However it has been seen that globalisation has supported women empowerment as the
companies from other parts of the world are also looking for women employees (Nayak,
2016). This might not be possible in their nation that is having male dominant society and
MNCs provide better chance for the women to develop. Globalisation is good for the people
that are having the potential to do meet the skills of the world standards and it is bad for the
people that are unable to do so. There are many people that keep on complaining about the
facts that MNCs are unable to provide higher numbers of total jobs that large numbers of
SMEs could provide. This is also why governments promote SMEs in any nation. It is also
seen that if the economic condition in any one part of the world is not good then its impact
can also be seen in any other parts of the world (Hirst and Thompson, 2019). Due to this
many people have to lose their jobs in other parts of the world as well. This is bringing
anxiety in the minds of the people.

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There is always a question being raised that whether the globalisation will continue or not.
Globalisation will continue in the long term. This is also because craze of the globalisation is
bigger in the case of the youngsters who are going to become the future of the markets. It is
seen that youngsters are better learners of technology and it is due to this they will be able to
do their business and take benefits in the modern age of the globalisation. It is likely to
continue in the future as well due to the support of the technologies Social Media which is
acting as a facilitator for promoting the products. It is seen that countries are becoming more
and more global and they are inviting foreign direct investments from all across the globe
(Eriksen, 2018). They are reducing the trade barriers and are entering into the global alliances
that facilitate easy entering of the companies. The process of globalisation will also continue
because the challenges in front of humanity is increasing and without each other help it is not
possible for the people to survive.

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