Contemporary Business Issues In a Globalized Environment - Essay

Contemporary Business Issues In a
Globalized Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Benefits of globalisation..............................................................................................................1
Arguments related to the external environmental factors which influence the individual as
well as company's main objectives..............................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Globalization is the process that helps in integrating people, organizations and
government that expand its business into different countries (Crane and Matten,2016). It is
related to advancement in the transportation and communication facilities that enhance growth in
different sector of the economy. Globalisation allows in expanding the business activities into the
international market and thus helps the organization in gaining the successful development and
sustainable growth of the firm. However, this Essay will also includes various problems which
will be often raised during the globalization of the goods and services into the international
market. Also, it will make a clear understanding about the different aspects that are considered
while introducing the goods and services to the other places of the world.
Present study will be based on Tesco company. It is a British multinational groceries and
general merchandise retailer. It is the third largest retailer in the world. It is diversified into
various areas such as books, clothing, furniture, petrol, software etc. This Report will include
globalisation and its benefits. It also includes external environmental factors that influence the
functioning of Tesco. In addition various, Various benefits associated with the expansion of
business and its goods and services in order to service in order to serve the people across the
world.
MAIN BODY
Benefits of globalisation
Globalisation refers to expansion of business, people, and government related to goods,
services and technology. It helps in increasing integration between countries that facilitate easy
import and export of goods. It involves increasing foreign direct investment from different
countries. Through this labour migrate from one place to another in searching for job.
Globalisation also helps in increasing investment in different sector by investing money in
innovation, infrastructure across various parts of the world. It is making economy more
connected with each other (Welford, 2016).After globalisation many companies market share is
rising in the world that helps in developing economy faster than other nations.
It helps in raising the standard of living among poor people and provide job opportunity
to less developed countries. It also leads to decrease opportunities in developed countries as the
production of goods is moving to different borders. Many corporations is getting competitive
advantage through globalization. It facilitates cheap product to customers by reducing tariff from
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goods and services. Most of the shopkeepers were getting access to new customers. Though this
interaction is increasing between various groups of people in the economy. It defines exchanging
ideas, values and culture among various people that facilitate different perspective of being
globalised. Country is considered to be the single culture after globalisation (Boda and Zsolnai,
2016). Globalisation helps in bringing attention towards intergovernmental organization such as
world trade organisation. International law is also come into existence after India becomes
globalised.
It allows countries to do business with other nations that will help in increasing
manufacturing, standard of living and expansion of country. However, outsourcing bring many
jobs and technology in developing countries that facilitate easy access to anywhere with the help
of technology. Trade barriers are removed by the government for easy trading with countries. It
also focused on human rights and provide social justice to people in the world. It provides
liberalize policies and procedures for permitting free flow of people from one place to another. It
results in investment in the unproductive sector and emphasize import and export for productive
sector.
Globalization is mainly divided into three categories such as economic, cultural and
political globalisation (Najam, Runnalls and Halle, 2016). All these categories affect the
functioning of economy. Economic globalisation includes capital, services, technology and
information. Cultural globalization refers to the transferring of ideas, values and norms. It helps
in increasing norms and knowledge that provide people collective cultural identities. Political
globalisation means growth in the political system that facilitate complexity in the business.
Globalization helps in increasing research and development, innovation and also helps in
achieving goal of the organization. After globalisation Tesco is also growing in its operation and
facilitate easy availability of raw material in the country. As in trading sector number of
employees are increased through import and export of goods and services. It also helps in
reducing inflation rate that provide customers to purchase goods and services from the market. It
has spreading new technology and provide economy green environment and productive. As it
gives opportunity to the women by reducing gender wage discrimination. It helps in improving
quality of management in the company.
Lower costs of goods and services facilitate in providing better product and services to
the customers. The world trade system also facilitate lower price of cost that bring new
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