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Contemporary Business Issues in a Globalized Environment- Doc

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Added on  2020-10-23

Contemporary Business Issues in a Globalized Environment- Doc

   Added on 2020-10-23

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Contemporary Business Issues in aGlobalized Environment
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Table of ContentsINTRODUCTION ..........................................................................................................................3MAIN BODY...................................................................................................................................3(1) Globalization ........................................................................................................................3Political Factors: .........................................................................................................................6Social Factors: ............................................................................................................................7Technological Factors: ...............................................................................................................8REFERENCES .............................................................................................................................10
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INTRODUCTION For operating businesses, company is facing many challenges and issues in the globalizedenvironment such as structures of company, laws and regulations, communication, cultures andpolitical risks. Globalization is the process by which businesses influence operating oninternational scale. This report will be based on contemporary business issues in globalizedenvironment. For this purpose, British Telecommunication will be taken into action. BT is amultinational telecommunication holding company in London, UK. It is the largest provider offixed line, mobile and broadband services. In this report, globalization and external environmentfactors which are affecting business operations will be explained (Akanni, Oke andAkpomiemie, 2015).MAIN BODY(1) Globalization Globalization is the process of integration with trade, communication and transportationof national and regional economic, societies and cultures which influencing the businessoperations on international scale. It is focusing on the economic side such as trade, foreign directinvestment, capital flow, etc. On the other side, wider range of activities and areas such ascultures, technology, political, media and other factors which affecting the business operations. Itis the process in which economics has increasingly integrated and inter- dependent. It is anongoing process that is connecting with people, cities, countries and regions with together.Objectives of globalization are to understand the basic concepts, processes and trends to assessthe impacts and a broad range of reactions which caused around the world (Asongu and DeMoor, 2017).It is growing due to advances in transportation and communication technology. Itinvolves economic resources of capital, goods and services as well as data of economy. Thecharacteristics of globalization are increasing trade in goods and services, developing globalbrands serving market in lower, middle and higher income countries, increasing transfer ofcapital including foreign direct investment, rising influence of wealth fund, higher level of labourmigration within and in between the countries, increasing capital investment, innovation andstructures which are spending across the world. Many emerging countries are increasing the
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shares of world trade and their economies are growing faster (Bašić, Vlajčić and Novak, 2018).There are many impacts of globalization which affect the business operations in economy. Theseimpacts might be positive and negative on the business activities. Some factors are liketechnology, trade, competition, investment, capital flow, employment and culture as well asorganization structure. It is creating and expanding the foreign trade across world. Companieshandling their business activities at the global level imports and exports goods across the world.It is influencing with trade rules, copyrights, policies on taxes, subsidies. This gives negativeimpact on efficient market, increasing competition, stabilized security and more wealth equalitythroughout the world (Telecom Industry & Globalization., 2012). Market efficiency refers to balance in between buyers and sellers. This affects at thelocal, national and global scale. At the national scale, controlled by finance, economics andbusiness. Globalization is the result of every aspect of existing life which is increaseinternational scale (Bašić, Vlajčić and Novak, 2018). Through improving technology,companies and countries are expanding their international trade in global economy. For thesharing of global identity, people are travelling to foreign countries for being exchanged morecultures. On the local level, it is changing the nature of business. It is affecting the local culturewith replacing traditional customs and religions with popular cultures in the UK and US.Impacts of globalization give negative effects on the business organisation directly orindirectly. These include some factors such as job insecurity, prices moving, terrorism andcapital flow as well as currency fluctuations and other elements. Due to pricing fluctuations is toincreasing competitions in developed nations effecting by globalization. Therefore, countries areforcing lowering down pricing of their products. There are other factors which include industryeconomics and public policy relating to competition of telecom industry in globalization. In theindustry, economics involve cost trends for long distance and implications, local links ofparticular of wire line and wireless, alternative way to security and reliability as well assearching for stabilised position in value arrangement (Ghezzi, ortimiglia and Frank, 2015). The impact of globalization on the telecom business structures and strategies involvingexpanding of incentives operation across nations, risk diversification, communication industrygrowth rates, political risks. The challenges of providing international services involving inhistory of organization. Other strategies are considered as competition which include substitution
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