Impact of Globalization on Business Practices

Running head: GLOBALIZATION AND BUSINESS PRACTICES
GLOBALIZATION AND BUSINESS PRACTICES
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1GLOBALIZATION AND BUSINESS PRACTICES
Executive summary
The report aimed at discussing the impact of globalization on modern day businesses and the
manner in which the same introduced and commercialized concepts of outsourcing and
offshoring. Businesses and countries have undertaken bilateral agreements and strategic
partnerships with the objective of maintaining the efficiency of the operations whole operating in
the different markets. Globalization is an influential concept which has not only increased
competition in the business environment but also challenged the existence of small enterprises
through induction of powerful technologies that are utilized by huge multinational
conglomerates. On the other hand, the research also enumerated the different issues that are
faced by businesses through globalization while examining the case of Apple and Foxconn’s
strategic partnership being affected by the US- China trade war. Therefore, the purpose of
undertaking the research is to develop a clear understanding of the different effects of
globalization on modern day businesses.

2GLOBALIZATION AND BUSINESS PRACTICES
Table of Contents
Introduction to globalization and its impact on current business practices.....................................3
Knowledge needs of international managers for improving organizational performance...............4
Knowledge on organizational processes, structure and market trends........................................4
Technological knowledge for continuous improvements............................................................5
Conflict resolution in cross- cultural teams.................................................................................5
Contributions of outsourcing and offshoring to globalization.........................................................6
Assessment of the case of Apple Inc. and its production partner Foxconn.....................................8
Challenges..................................................................................................................................10
Opportunities.............................................................................................................................11
Problems....................................................................................................................................12
Recommendation.......................................................................................................................13
Conclusion.....................................................................................................................................13
References......................................................................................................................................15

3GLOBALIZATION AND BUSINESS PRACTICES
Introduction to globalization and its impact on current business practices
The concept of globalization is mainly focused on shared interests of the different
economies with the objective of improving their position through collaborations and strategic
partnerships across borders. Abid and Gulzar (2018) opined that globalization has brought about
significant changes in the business environments through transmission of technologies and
business ideas for the better development of the systems. Moreover, Gong et al. (2018) noted that
globalization facilitated cash flows in the economies in the form of FDIs for increasing the scope
of growth in the different segments.
Nikolova, Rodionov and Afanasyeva (2017) noted that the major implication of
globalization is specifically based on the cost of goods and the technologies that are set up by the
companies with the objective of adhering to the growing demands of the populations. Again,
globalization also imposed cross- cultural teams and diversity in the workplace to stimulate
innovative practices in an organization. However, cross- cultural teams might result to clashes
among the team members due to the diversity of their background, culture and language apart
from religion or caste, which might affect the performance of an organization.
Hitt and Xu (2016) defined globalizationas a contributing factor to shared technologies
and knowledge for the better development opportunities of the different organizations and the
collective growth of the economies. On the other hand, Wirtz et al. (2016) defined globalization
as one of the major factors that are shaping the marketing and distribution operations of an
organization. The increased scope of marketing operations and the interconnectedness has
enabled the organizations in sharing knowledge and information of the processes across borders.
The effective transmission of knowledge and information on the business processes brought