Current major trends in globalization

This article discusses the current major trends in globalization and their impact on the business landscape. It explores the prospects and potential risks of doing business internationally, including political instability, security concerns, customs at borders, cross-cultural barriers, and technology access. The article also highlights the impact of globalization on organizational goals and modern business practices, emphasizing the importance of strategic objectives and proactive examination of the business environment in foreign countries.

Running Head: GLOBALISATION 0
COMPETITIVE BUSINESS LANDCAPE

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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.

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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

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objectives rather than developing simple goals. For instance, fast food firms in New Zealand
may first do joint venture to any country local firm where they are planning to expand to gain
various insights with market trends and customer preference. This shows the importance for
New Zealand firms to change their plans and practices while step out in international markets
so to ensure sustainability.
In relation to above risks, New Zealand firms can also ensure to proactively examine
business environment of the respective country they are trying to expand as this will help
them in strengthening their goals and objectives extended towards long term basis.

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Conclusion
Hence, if those firms take a carefully considered approach to new ideas while
expanding globally, executing those that fit with their business objectives and leaving those
that do not, it can help in their business expansion plans run smoothly.
In addition, any New Zealand based business seeking to expand their business
internationally, some of important factors they need to emphasize in order to be successful
such as cultural difference, legal and regulatory barriers, foreign government considerations,
local competition, prospective business model, and local partner. It will help the firm to
proactively develop strategies and goals considering the future scenario.

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References
Brondoni, S. (2008). Market-driven management, competitive space and global
networks. Symphonya, Emerging Issues in Management, (1), 14-27.
Duckitt, J., & Sibley, C. G. (2009). A dual-process motivational model of ideology, politics,
and prejudice. Psychological Inquiry, 20(2-3), 98-109.
Gnecchi, F. (2009). Market-driven management, market space and value
proposition. Symphonya. Emerging Issues in Management, (2), 33-45.
Inman, P. (2018). New Zealand is best place to do business but UK slips to ninth – report.
Retrieved from https://www.theguardian.com/business/2018/oct/31/new-zealand-is-
best-place-to-do-business-but-uk-slips-to-ninth-report-world-bank
statista.com. (2019). Risks to global businesses in 2019. Retrieved from
https://www.statista.com/statistics/422171/leading-business-risks-globally/