Business and Government in the Global Context - Essay

This essay analyzes the impact of global economy on businesses and governments. It discusses the role of technology, demographic shifts, and the balance of power between the private and public sector. It also examines the relationship between businesses and governments in the global context.

Running Head: Business and Government in the global context
Business and Government in the global context
Essay

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Table of Content
Executive Summary...............................................................................................................................2
Businesses in the Global context...........................................................................................................3
Governments in the Global context.......................................................................................................4
References.............................................................................................................................................5

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Executive Summary
As businesses and governments struggle to adapt to the ever-changing global environment
they will need to think deeply about the risk and opportunities facing them each day.
Organizations need to think on their feet and adopt a dynamic strategy that will enable them
to stay afloat while at the same time adopting change as it comes their way. Emerging market
leaders are reshaping the global market and are posing stiff competition to multinational
corporations and governments who largely use to control the market. Globalization has been
influenced mainly by growth and adoption of technology in major industrial sectors around
the world. The world has been reduced to a global village. As a result, this paper seeks to
analyze the impact of global economy on businesses and governments.

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Businesses in the Global context
Kobrin notes that globalization has had a significant impact on economies and this has
been made possible through the advancement in technology in many industries across the
globe. He further posits that technology has rendered the so-called national markets to small
to be ranked among the principal entities of the world economy. Moreover with the
interlinking of industries through global networks, geographical space is losing its place in
the corporate world (Kobrin,2007).
The change in the state role can be attributed to the higher dependence on others
(Reader, 2017). Corporate organization these days have taken over the state and are the major
contributors to altering their power. These large corporate organizations in the present day
form a strong lobby of the like-minded individuals and have the influencing power of the
government bodies.
One weakness of Hughes and O’ Neill argument is that it does not highlight the issue
of demographic shifts that have equally impacted on businesses and their growth globally. It
is evident that the rapid growth of middle class and increasing urbanization in various regions
has not only reshaped world economy but has also affected the entire society as a whole.
Moreover, the balance of power that has been witnessed between the private and public
sector has dramatically shifted over the years since the infamous economic recession that
affected the global economy a decade ago(Hughes & O’Neill.2013.)
Cohen and Jaidi, note that it will be imperative for organizations to come up with
strategies which will enable business cope in the environment that they operate in. As a

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result, the strategies developed should address the issues that affect the business both locally
and globally. For instance, current global trends in the corporate world depict that companies
are adopting clean-tech into their growth plans. As result companies developing their
strategies need to incorporate these trends into their growth plans if they are to compete
effectively in the environment they operate in.(Cohen and Jaidi, 2014).
Governments in the Global context
Governments on the other side have has a substantial influence on how businesses
operate within the regions in which their operate. Hughes and O’ Neill note that in some
regions the influence of the government far much felt while in other regions the government
has been kept at a distance by capitalist control.
Every large multinational corporation in the present day lays emphasis on co-creation
with the state and enters with the promise of optimum utilization of resources along with the
development of State; this ensures a win-win state both for the state government and the
business organization. Globalization can thus be seen to have a positive effect on the
development of the states by optimum utilization of the available resources to the fullest and
also generating abundant revenue for the state (Hughes,& O’Neill D.2013.).
The relationship between the business and government can no longer be treated as one
that affects only a single government. Advancement in technology has led to many business-
related issues that cross national borders. Moreover, many companies operate within different
geographical locations under different government jurisdiction. Nevertheless, it is evident
that the action of an individual government will have implications for other governments due
to globalism. As result governments and various industries have been forced to cooperate and
work together since advancement in technology has enabled this global economy to unify and
forge towards one common goal (Asongu, 2014).
Governments, on the other hand, have to quickly adapt to the changing landscape of
technology to better understand the organization. For instance, when businesses realize that

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the governments are becoming smarter and are using Technology to track the business will
adhere to the laid down policies and divert their interest towards the welfare of the state.
References
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.
Cohen, S. and Jaidi, L., 2014. Morocco: Globalization and its consequences. Routledge.
Hughes, O W & O’Neill D.2013.Business, Government and Globalisation.Palgrave,
Macmillan
Kobrin J.S.2007.The Architecture of Globalization: State sovereignty in a Networked Global
Economy.
Reader, J., 2017. Reconstructing practical theology: The impact of globalization. Routledge.