Implications of the negative Globalization Theory

This article discusses the implications of the negative globalization theory on business, particularly the loss of diversity in the global market. It explores how major economic and political interests dominate the world, affecting regional and family businesses. The case of family businesses in Australia is highlighted.

Running Head: BUSN 2019 INTERNATIONAL BUSINESS CONTEXT
BUSN 2019 International business context
Student’s Name
University Name
Author’s Note

2BUSN 2019 INTERNATIONAL BUSINESS CONTEXT
Table of Contents
1 Implications of the negative Globalization Theory......................................................................3
2 Drivers of Change.........................................................................................................................3
3 Consequence of Globalization......................................................................................................4
Reference List..................................................................................................................................6

3BUSN 2019 INTERNATIONAL BUSINESS CONTEXT
1 Implications of the negative Globalization Theory
The theory of the Globalists’ view of business can be discussed here. They view
globalization as powerful as well as inevitable. The impacts of globalization are considered to be
irresistible and they cannot be influenced by the people. One significant category of globalists
consists of the Negative Globalists. They are of the view that owing to globalization, business in
the world is constantly becoming more homogenous and therefore lacking diversity. As the most
obvious reason behind this, it can be argued that the major economic as well as political interests
of the capitalistic forces are dominating the world and it is because of them that the intrinsic
diversity of the global businesses of the world is getting destroyed. These forces are imposing
their own agendas because of which the regional, small as well as family businesses are getting
affected. The situation with the family businesses of Australia is also the same.
2 Drivers of Change
This report concerns the production of citrus fruits by the small family businesses. As founded
by Mann (2010), the consumers of Australia should be waiting to buy the best quality of citrus
fruits like oranges when the season of oranges fall in Australia. So far as the business of
AGRIFresh and other family orchard owners of Australia are concerned, there are short non-
production phases of citrus fruits. This is where the roles of the big convenient stores as well as
the shopping malls dealing in daily goods come in. In the name of product differentiation they
are constantly disrespecting the natural seasonal productivity of seasonal citrus fruits like
oranges or mandarins. More than 10% of the navel oranges in the Western Australian markets
(including the wet markets and the shopping complexes), comes from the orchards of
AGRIFresh. However, the big consumer goods brands in the Australian market want to make the

4BUSN 2019 INTERNATIONAL BUSINESS CONTEXT
seasonal fruits available in the Australian market throughout the year. That is why, when the
small companies like AGRIFresh are not able to provide the citrus fruits in the market because of
the seasonal non-production phases, these major industrial players are mostly accepting the citrus
fruits that are imported from the markets Egypt. This is the major driver or change that is
alternating the nature of business of these local family owned citrus fruit orchards like
AGRIFresh.
3 Consequence of Globalization
There are several consequences of this peculiar globalist attitude of the big shopping
brands of Australia. On one hand, the Citrus Australia is demanding that that the customers of
citrus fruits in Australia should treat Australian navel organs or peaches like Mango or Mandarin
only. They should enjoy the season of those fruits. In this case, it is worth highlighting that the
family orchards like AGRIFresh make the bulk of their profit at the time of the specific seasons
when the specific fruits are actually available. In fact, Smyth and Sultanbawa (2016), states that
Australia have a big season of citrus fruits, starting from April and ending in December.
However, even during that small window when the fruit is not available, the big shopping
companies are importing fruits from the external markets like Egypt and selling them at higher
prices.
Mann (2010), argues that as a direct outcome of the import of fruits from the foreign markets, the
nature of consumption of the people of Australia are also changing. They prefer the imported
fruits as those are branded as more exquisite and “special” compared to local fruits. As an
outcome, it is apprehended that within a span of 2 to 3 years, the demand of the native grown
fruits will get further diminished. Besides, considering the big market players in the country, the

5BUSN 2019 INTERNATIONAL BUSINESS CONTEXT
small family based businesses will not get the chance to directly export their produces. This is a
major threat that is impending for the local businesses in the citrus fruits industry like
AGRIFresh.

6BUSN 2019 INTERNATIONAL BUSINESS CONTEXT
Reference List
Mann, A. 2010. Farmers' apocalypse: the globalisation of food supply. ABC News. (online).
Available at: https://www.abc.net.au/news/2010-09-10/29854 [Accessed on: 10th April 2019]
Agrifresh.com.au, 2019. A Family Business. Available at: https://www.agrifresh.com.au/about-
us. [Accessed on 10th April 20198]
Smyth, H. and Sultanbawa, Y., 2016. Unique Flavours from Australian Native Plants.