Globalization's Impact on Mobile App Business

This assignment examines the influence of globalization on a mobile application development business focused on buying and selling goods. It discusses both the positive aspects like access to global talent, funding, and wider customer reach, as well as the negative impacts such as intense competition and currency risk. The analysis emphasizes the importance of navigating these challenges and leveraging globalization's benefits for success.

Running Head: Globalization
Globalization
Impact on Mobile application venture

Globalization 1
Executive Summary
Globalization is a phenomenon which demonstrates free flow of information, ideas, technology,
manpower, resources and currency across the globe. Globalization has helped the world
economy grow and develop. The phenomenon has a massive direct or indirect impact on every
individual. It has connected the world in a manner that never before existed. This report throws
light on various benefits that of globalization that would help our new business venture of a
mobile application development. Since every coin has two sides, Globalization is accompanied
by its flaws and shortcomings. The idea has made the rich richer and the poor poorer. Like
everything else, the flow of resources is largely uneven and often unfair. This report lays
emphasis on the drawbacks faced by our business venture owing to the advent and advancement
of Globalization.

Globalization 2
Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................2
Positive impact of globalization......................................................................................................3
Better talent..................................................................................................................................3
Ability to acquire investment globally.........................................................................................3
Cross cultural exchanges..............................................................................................................3
Free flow of information technology...........................................................................................4
Increased target market................................................................................................................4
Safer payments.............................................................................................................................4
Challenges due to globalization.......................................................................................................4
Threat of new entrants..................................................................................................................5
Currency risk................................................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................7

Globalization 3
Introduction
Globalization refers to the increasing exchange of information, people, ideas, businesses and
currency from one part of the world to another. Globalization is a current phenomenon which has
largely changed the shape of the world and continues to positively and adversely impact people,
businesses and economies (Hirst, Thompson & Bromley, 2015). It has made the world a truly flat
place and ensured that there are no boundaries across different parts of the world. In the current
scenario of globalization, it is not uncommon for someone in Australia wearing clothes or shoes
that have been imported from different part of Europe. The world horizon has opened up due to
globalization (Beck, 2015). This has also led to increased trade, establishment of multinational
companies and development of economies across the world.
The widespread use of social networking websites and various digital marketing and
international marketing strategies in this globalized world have had a largely positive impact on
businesses around the world (Kaur, 2016). Business are now able to recruit people from different
parts of the world. They can use technology that is developed in a country miles away and the
information as well as ideas are freely flowing through different land and seascapes. No doubt
that there are certain disadvantages to the phenomenon. It is often argued that globalization leads
to the rich economy becoming richer and the poor economy becoming poorer. Clearly, the flow
of ideas, information, technology, businesses and currency has not been entirely fair to all. But in
the hindsight, the globalization has proved to be a boon for all involved especially for developing
economies.
This report throws light on the impact of globalization in the startup business venture which was
developed in the first part of the assignment. The idea laid emphasis on a new business model
where a mobile application development firm was created which will be used by businesses to
buy and sell things. The business specialized in creating mobile applications for various
businesses with an aim to digitize the Australian economy. The mobile applications developed
by the business are available on all mobile platforms. Now this report has explained the benefits
experienced by businesses due to globalization as well as problems faced owing to the same.

Globalization 4
Positive impact of globalization
Globalization has various positive impacts which have led to the development and growth of
businesses and economies. The major advantages that would help our mobile application
development business where people can buy and sell things are as below.
Better talent
The major advantage of the business would be the ability to acquire talent from different parts of
the world. The concept of virtual offices and hiring people from different countries is not
unknown. The talent available outside of Australia is immense as well as often less expensive
(Kang & Shen, 2017). Human resources form a crucial part of any business. Hence our firm can
aim at recruiting freelancers or part time remote employees from different countries. This will
help the business gain a fresher talent, encourage a free flow of information and new ideas and
infuse cross cultural learning within the firm. This is only possible due to globalization and
increasing accessibility of people around the globe.
Ability to acquire investment globally
Just like it becomes easy for the firm to acquire employees from different countries, it becomes
easy to also acquire investment from angel investors located in different part of the world.
Various startups in India are funded by American investors and various startups in Australia are
utilizing Chinese resources to establish and grow their business (Hong & Pavlou, 2014). This is
only possible due to the increasing advent of globalization.
Cross cultural exchanges
Once the importance of globalization was realized, various universities and private organizations
from different parts of the world started exchange programs which enabled people to travel miles
away from their home country and do internships in organizations abroad. This was done with an
aim to facilitate exchange of information, talent and culture through the globe. Participating in
such exchange programs would also help the business in learning new things and help us
enhance our cultural strength (Thomas & Peterson, 2017).

Globalization 5
Free flow of information technology
Another benefit of globalization would be a free flow of information around the world. Thanks to
social media and digital marketing strategies, the world has become truly boundary less
(Siemens, 2014). It will be easier for our business to acquire new, developed, recent and
inexpensive technology from different countries. This consistent flow of technology will help us
remain updated with the recurring changes in the technological world. Our business of mobile
applications development will require technology and acquiring new and improved technology
from different countries will help the business gain a competitive advantage over its consumers.
Increased target market
Due to globalization, every business is available to the world. The number of exports and
imports have largely increased and this international trade forms the backbone of various
economies. With the advent and advancement of social media, it is now even possible to market
our business to people based in different countries of the world (Hollensen, 2015). This largely
increases our target market and makes us accessible to various geographies. We will build a
Facebook page and indulge in effective marketing through Instagram and Pinterest with an aim
to attract international customers.
Safer payments
A crucial aspect of the business is the exchange of funds. This includes payments done to
vendors and other stakeholders as well as payments received from customers. Globalization has
allowed a safer means to transfer money from one person to another at a single click. This has
led to a larger ease of the business. This enhances the extent of trust between people and makes it
easier for them to conduct business despite their geographical distance.
Challenges due to globalization
As mentioned before, every coin has two sides. Similarly, globalization has certain
disadvantages as well. Once the business commences and successfully takes advantage of a
globalized world, it is only natural to face certain challenges for the same reason. A few

Globalization 6
challenges face by the mobile application development business due to globalization are as
below:
Threat of new entrants
A globalized world has opened various opportunities for businesses to establish and flourish
while catering to a varied market segment placed across the globe (Stiglitz, 2017). This however,
increases competition in every industry. It becomes necessary for businesses to continue to foster
innovation and creativity in their business to gain a competitive edge. This extreme level of
competition has made every industry a red ocean one. Just like it is easy for our business to
target consumers from across the world, similar businesses from different parts of the world
become our competitors. Because the consumer now has a large number of options to select from
and he is no longer bound by geographic locations in order to conduct business.
Currency risk
The major problem in conducting business with clients, investors and other stakeholders which
are located in different countries is the risk of fluctuating currency. The currency markets have
shown a wide movement over the recent years (Bucher & Ranaldo, 2016). The Australian dollar
has shown significant movement against most G7 currencies like US dollar, Canadian dollar,
Great Britain pound (GBP), Japanese Yen (JPY) and even Chinese Yuan. This makes it difficult
for us to analyze the exact profit or loss that can be anticipated from international sales or
investments in the future years. Therefore, it is in our best interest to hedge our foreign currency
trades in an efficient manner.
Conclusion
Globalization has caused a massive change and development in the world in the years to come. It
has enabled the exchange of information, ideas, technology, culture and businesses from across
different countries of the world. Our business of mobile application development used to buy and
sell things would also be largely impacted by the effects of globalization.
On the positive note, globalization would enable us to get fresh talent from different parts of the
world. We would even be able to get funding from different investors who are like minded even

Globalization 7
if they are geographically far away (Hay & Marsh, 2016). The advent of globalization will also
enable us to reach out to a wider audience and target a larger customer segment spread across
different countries in the world. International payments are safely made and flow of information
technology is highly prevalent. This will lead to better business, increased sales and an improved
organizational culture.
On the other hand, globalization has led to ever increasing competition and major currency risk
that follows in every international business transaction. However, it has been noticed that the
phenomenon has helped the economy and business industry boom which has led to an overall
improvement and growth of the world.

Globalization 8
References
Beck, U., 2015. What is globalization? John Wiley & Sons.
Bucher, M. C., & Ranaldo, A. (2016). Conditional Currency Hedging.
Hay, C., & Marsh, D. (Eds.). (2016). Demystifying globalization. Springer.
Hirst, P., Thompson, G., & Bromley, S. (2015). Globalization in question. John Wiley & Sons.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Hong, Y., & Pavlou, P. A. (2014). Is the World Truly ‘Flat'? Empirical Evidence from Online
Labor Markets.
Kang, H., & Shen, J. (2017). International Recruitment and Selection Policies and Practices.
In International Human Resource Management in South Korean Multinational Enterprises (pp.
51-84). Springer Singapore.
Kaur, G., 2016. Social Media Marketing. Asian Journal of Multidisciplinary Studies, 4(7).
Siemens, G. (2014). Connectivism: A learning theory for the digital age.
Stiglitz, J. E. (2017). The overselling of globalization. Business Economics, 52(3), 129-137.
Thomas, D. C., & Peterson, M. F. (2017). Cross-cultural management: Essential concepts. Sage
Publications.