MNG 92210 - Short Written Response

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Short Written Response (MNG 92210)

Added on 2020-04-21

MNG 92210 - Short Written Response

Short Written Response (MNG 92210)

Added on 2020-04-21

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Running head: GLOBAL BUSINESS ASSIGNMENTGLOBAL BUSINESS ASSIGNMENTName of Student:Name of University:Author Note:

1GLOBAL BUSINESS ASSIGNMENTContentsANSWER-1:....................................................................................................................................2ANSWER-2:....................................................................................................................................4ANSWER-3:....................................................................................................................................6

2GLOBAL BUSINESS ASSIGNMENTANSWER-1:Globalization is a channel through which entire world economies can be connectedthrough one string. The concept is symbolic of encouragement in the international connectednessof the economies through growing trade in terms of sharing and exchanging goods, services,money, ideas, technology and even culture (Hill, Cronk and Wickramasekera 2013). The basicintention behind globalization is economic benefit of the nations involved in the process. Sincethe process opens door allowing diverse international business activities and entities to enter inthe domestic market, it has greater implication on the business operation and condition of theinternal market and institutions (Coleman 2016). This openness makes the nations responsiveand receptive of world phenomenon, which has both positive and negative influences on anynational economy.Positive: Allows free trade: Greater the globalization more is the free trade, which further indicatesgreater export or import of the nation. Globalization increases trade volume, whichfurther increases national income through increase in the export revenue. If the domesticbusiness has international demands then globalization can increase its production and Greater capital inflow and integrated capital market: Globalization leads to opening ofworld capital market allowing for more capital inflow and outflow without muchregulation (Johnson 2013). These are mostly operative through foreign direct investmentand foreign portfolio investment. This leaves positive impact for the domestic businessfor wider operation and expansion.

3GLOBAL BUSINESS ASSIGNMENTExpands market: Greater the globalization more is the free trade and less regulation. Thisallows markets to expand cross-border. This further takes care of proper utilization of theresource while boosts the economies of scale potential of the firms.More information and technology: Free trade as result of global integration allowsinformation and technology to flow too along with goods and services. It reduces cost ofproduction and increases business profit potential.Less inflation: Global expansion strategy often involves charging lower price indestination countries leading to lower inflation in the consumer goods category. Thismight bring down overall inflationary pressure. Flexible Labor Market: Globalization not only increases scope of employability but alsoleads to a labor market more flexible due to more skills and training provision (Johnson2013). Skilled labor in workforce have positive impact on the business of domestic firmswho can also benefit from skilled employee.Negative:Competition: Biggest turn off globalization exerts on domestic business is hugecompetition and survival struggle out of it. In search of market when foreign firms and theirgoods enter the domestic market it creates much pressure on existing firms as they face qualityand price issue (Ethier 2014). It is often found that foreign goods are sold at lower price in spiteof being high quality mostly because of the sound technology used in their production. Theseverity of competition can even provoke the existing domestic firms to shut down and go out ofthe business.

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MNG 92210 - Short Written Response