Globalisation in Business Context: Implications for Industry and Society

This report discusses the meaning of globalisation in the business context and its wider implications for industry and society. It explores the benefits, drawbacks, and consequences of globalisation for business and society. The report also examines the impact of globalisation on markets, employment, culture, and the environment.

Discuss What Globalisation Means In The
Business Context And Consider The Wider
Implications For Industry And Society In
General

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Definition of globalisation:.........................................................................................................1
Impact and implications of globalisation for business ...............................................................2
1.) Benefits of globalisation:..................................................................................................2
2.) Drawbacks of globalisation: .............................................................................................2
3.) Consequences of globalisation: ........................................................................................2
Impact and implications of globalisation for Society ................................................................2
1.) Benefits of globalisation:..................................................................................................2
2.) Drawbacks of globalisation: .............................................................................................2
3.) Consequences of globalisation: ........................................................................................2
CONCLUSION ...............................................................................................................................2
REFERENCES ...............................................................................................................................3

INTRODUCTION
Globalisation refers to the process of integration and integrating among companies,
people and governments worldwide. This process has grown due to advances in communication
technology and transportation (Albu and Flyverbom, 2019). Additionally, globalisation is the
spread of technology, products, jobs and information across national cultures and borders also. In
economic terms, globalisation describes an interdependence of countries around the world
fostered via free trade. Main purpose of this report is to discuss the meaning of globalisation in
context of business and its wider implications for industry as well as society. In order to achieve
this purpose, different benefits, consequences and drawbacks of globalisation as well as its
impact on society and business will be included in this report. Along with this, globalisation has
direct impact on business in different ways such as economic of sale, increased competition,
increased mergers and joint venture, location flexibility etc. Apart from this process of
globalisation also has impact on society. As integration of people and societies through
technology, trade and increased labour market, have different positive impacts on the world.
MAIN BODY
Definition of globalisation:
Globalisation is the integration of political, economic and cultural systems in across the
world. Globalisation introduces to the increasing integration or combination of economics
around the globe, particularly via the movement of services, goods and capital across borders. In
simple word, globalisation is a term that also introduces to the movement of technology and
labour across international cultures or borders. In addition, it is the process of increased co-
operation and integration of various national economies. This process involves national
economics comely increasing integrated and inter-related (Alicia, 2019). There are certain
aspects that involved in globalisation such as greater free trade, increased capital flows, greater
movement of labour, and increased integration of international trade cycle, growth of
multinational companies, improved transport, increased communication and effectively reducing
issues between nations. There are some benefits and drawbacks of globalisation in general which
are determined as below:
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Benefits: There are several benefits of globalisation for business and society such as
lower price, greater choice, increased global investment, free movement of labour, economics of
scale-lower prices and may reduce international inequality.
Drawbacks: There are certain drawbacks of globalisation for business as well as societies
such as less cultural diversity, environmental costs, structural unemployment, brain drain from
few nations, and tax competitions and avoidance.
Consequence: There are some consequence of globalisation in context of society and
business such as loss of national sovereignty, effect on the poor, effect on national culture, effect
on the natural environment, offshoring and the flights of jobs etc.
Impact and implications of globalisation for business
1.) Benefits of globalisation: There are different benefit of globalisation for business, some are
Determined as below:
Larger markets: Process of globalization opens up different and new chances for businesses to
sell their services and product to a larger marketplace, which means additional possible sales
and better returns (Beumer, Figge and Elliott, 2018). Depending on the business it can open
up many other possibilities in terms of logistics, marketing, distribution and supervision of
these produce and services.
New ideas due to cultural diversity: Managing global employees includes group working
across diverse locations, large number of person are travelling and stirring nations for work,
having a variety of diverse work practices and ethics and yet religious differences.
Therefore, all of these can be major challenges, but devastatingly are an optimistic obsession
within the place of work as it brings collectively diverse ideas and perspectives and insights.
2.) Drawbacks of globalisation: There are several drawbacks of globalisation for business
organisation, some are explained as below:
Issues with supply chain: Businesses committed to moral work practices or ethics may analyse
that they cannot for all time account for these principles being met at all point within their
supply chain as well as operations (Dieuaide, 2018). For instance there may be farmers,
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suppliers, logistics operators’ and factory workers who are oppressed or work within unsafe
conditions.
Potential for IP theft: When businesses products are develop out of the country in factories on
company’s behalf based in a new nation, there is possible that IP (intellectual property) and
designs might be copied, stolen, replicated and sell for cheaper in another place.
3.) Consequences of globalisation: Globalization is a process of integration that leads to
maximised rivalry. This struggle can be associated to service and goods cost and price,
technological adaptation, quick response, quick production by companies etc. When a
company produces with less target market, cost and sells at lower rate, it is capable to
raise its market share and profitability (Frazer, 2018).
Therefore globalisation is a useful and effective process for business by increasing sales and
market ratio. With the help of globalisation an organisation can easily expand their business
operations and activities and also maximise number of customers. Thus this process helps
business by improving its growth and success at international level. Alone with this, implication
of globalisation for business is more successful and beneficial for companies as it support them
to accomplish competitive benefits and gain better advantages for future growth and success at
global level.
Impact and implications of globalisation for Society
1.) Benefits of globalisation: Increased communication and free trade between countries, along
with improved access to media, education, technology, consumer goods, healthcare and
many other resources are frequently considered benefits of globalization. There are some
benefits and advantages of globalisation for societies, several are described as below:
Increase in employment opportunities: As globalization maximise, more and more business
are setting up firms in other nations. This in turn maximise the employment chances that group
of person at one place have (Michie, 2019). Large number of person can get superior jobs
without having to shift to other nations in look for of superior jobs. These days, many
international organisations such as Microsoft, Toyota and Google etc. have their offices in UK
and different British work for these organisations in UK. Without globalization, UK people
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would not have had the chances to work for such organisation in United Kingdom. There are
some other benefits of globalisation process for societies which are explained as below:
 Free flow of services and products between nations due to the diminution in trade
barriers.
 Establishment of an environment or situation for flow of capital as well as investment
among nations.
 Free flow of improved technology from single nation to another.
 Free movement of labor in different nations.
2.) Drawbacks of globalisation: Drawbacks of globalization comprise exploitation of
developing nations, cultural homogenization, unfavourable impacts on local economies
as well as the environment or society. It is a difficult problem, and while several dispute
that it decreases international poverty, others dispute that it essentially enhance wealth
dissimilarity international (Mitaľ, 2018). There are some drawbacks and disadvantages of
globalisation for societies, some are explained as below:
Environmental costs: One of the main issues of globalisation process is that it has maximised
the utilize of non-renewable resources. In addition to this, globalisation has also contributed to
enhanced pollution as well as global warming. Business can also farm out production to where
ecological standards and principles are less strict. On the other hand, globalisation has bad
effects on society.
 Globalisation broadens the dissimilarity between the poor and rich citizens.
 It affects demographic issues.
 Globalisation is one of the main causes of global terrorism.
 Environmental degradation (Suto and Takehara, 2018).
 The loss of definite traditions and customs, inherent to a specific culture.
 Poverty and Unemployment
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3.) Consequences of globalisation: Globalization is connected with quick and important human
changes. Along with this, movements of large number of person from rural to urban
places have accelerated. In addition, growth and development of cities within the
developing globe particularly is related to substandard existing for many. Social and
domestic violence and Family disruption are increasing (Roslan, 2020).
CONCLUSION
From the above mentioned information, it has been concluded that globalisation has
positive effect on business as well as society. In context of business, globalisation supports
organisations in expansion of its business operations and also improvement of its brand image at
international level. Globalisation develops number of chances for business in less industrialized
nations to tap into larger market in all over the globe. Therefore, business placed in developing
nations has more access to technology, capital flows, cheaper imports human capital and larger
export markets. Along with this, globalisation also has positive impact on society. As
globalisation helps society by providing job opportunities to an individual and also improving
their living of stranded.
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REFERENCES
Books and Journals
Albu, O. B. and Flyverbom, M., 2019. Organizational transparency: Conceptualizations,
conditions, and consequences. Business & Society. 58(2). pp.268-297.
Alicia, G., 2019. Globalisation Of Variolation: The Overlooked Origins Of Immunity For
Smallpox In The 18th Century. World Scientific.
Beumer, C., Figge, L. and Elliott, J., 2018. The sustainability of globalisation: Including the
‘social robustness criterion’. Journal of cleaner production. 179. pp.704-715.
Dieuaide, P., 2018. Grey zones and triangulation of the employment relationship in globalisation:
a business policy approach. Transfer: European Review of Labour and Research. 24(3).
pp.297-315.
Frazer, L., 2018. Juridical gyroscopic orientation of transnational business negotiations.
Michie, J. ed., 2019. The handbook of globalisation. Edward Elgar Publishing.
Mitaľ, O., 2018. The Impacts of Globalisation Processes on the Execution of Public
Administration Functions. Politické vedy. 21(4). pp.96-117.
Roslan, A. H., 2020. Globalisation, unemployment, and poverty: The need for a new perspective
on social protection in Malaysia. Malaysian Management Journal. 10(1-2). pp.49-65.
Suto, M. and Takehara, H., 2018. Does Foreign Ownership Enhance the Corporate Social
Performance of Japanese Firms?. In Building new bridges between business and
society(pp. 171-189). Springer, Cham.
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