Current major trends in globalization

Running Head: GLOBALISATION 0
COMPETITIVE BUSINESS LANDCAPE

GLOBALISATION 1
Current major trends in globalization
Globalization is the practice by which the world is becoming progressively uniting
and has stemmed all the way from the first Industrial Revolution back in 1700s. It also have
contributed in growth of international trade that ease the movements of goods, capital,
services and information. (Brondoni, 2008).
Although, globalization comes up with mammoth benefit considering the landscape of
business, however, there are some downside too. Technical developments comprising
containerization, enhancement in processing of information and bringing more reliable and
lower cost systems for sharing video, voice and data have significantly simplified the
globalization of business. There are various environment forces also in the globalization that
has improved the incentives for organisation to identify out the lowest cost suppliers of
services and materials irrespective of their location (Gnecchi, 2009). This helped most of the
multinational organizations as they did not require to develop distinct manufacturing
amenities within a nation to overawed tariff blockades. Moreover, these organizations also
need to re-think their strategies for achieving success and competitive edge in the specific
industry by identifying various significant trends getting up from the existing movement of
globalization.
Prospects and potential risks
Doing business internationally brings out new risks as well as opportunities and it is
very important for every New Zealand firm to expose to those risks such as political
instability, security concerns, customs at borders, etc. so as to assess and manage them
effectively. At present, New Zealand has been ranked among the top 190 countries as stated
by World Bank, with its Doing Business 2019 report (Inman, 2018). Along with Singapore
and Denmark, New Zealand was noted for “exemplifying a business-friendly environment”
and past few years, number of overseas companies have established or expanded their base
within the nation. However, if the business in New Zealand wants to operate globally, the
company may face challenges such as cross-cultural barrier, communication barrier,
technology access and utility, geography isolation, differences in heritage and functions.

GLOBALISATION 2
In addition, as per data insights by statista in relation with risks to global business in
2019, the two major risks include business interruption (including supply chain disruption
and vulnerability) and cyber incidents such as (cybercrime, IT failure and data breaches).
Source:
(statista.com, 2019)
For instance, there is a cultural difference between India and New Zealand as India
has always been considered as the land with Unity in Diversity where New Zealand is having
mix of people and thus considered to be Land of the Kiwi (Duckitt, & Sibley, 2009).
Considering an example, there are more non-vegetarian lovers in New Zealand as compare to
the Asian countries and this may affect fast food business firms of New Zealand to expand
into India as there at some regions, eating beef is considered as a sin. Other than this, New
Zealand political environment is also stable; however, if any firm to seek to do business
outside New Zealand, there may be several political or legal risk such as corruption or rigid
laws of government for establishing a particular business. Some other risk includes local
competition, operational risks such as sourcing and allocating resources.
Impact on organisational goals and modern
business practices
Considering all the above risks and practices, New Zealand organisation can leverage
their expertise, strengths and skills to achieve their goals and objectives effectively and
efficiently. In relation to above-mentioned potential risk, the firm is required to form strategic