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