Complex Role of Globalization in Business Operations

Running Head: INTRODUCTION TO BUSINESS 1
Introduction to Business
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INTRODUCTION TO BUSINESS 2
Complex role of globalization
Introduction
Globalization is a term use in describing as well as explaining several global phenomena.
The issue of globalization has been given positive connotations by different individuals who
advocate for greater economic integration across different borders of countries globally.
Globalization is censured by people who see it as a risk to social attachment and as the
advancement of free private enterprise that undermines welfare of various countries (Aman,
2018). The forces that most companies around global society have to deal with from social
networking to cases of social unrest have developed rapidly over the past decade. Therefore,
globalization stays to be the process of increased interconnectedness among nations. The
prosperous economic progress that is typically gained as a result of the improved
interconnectedness among states usually leads in the better standard of living along with
improved quality of life. There is a consensus among global economists that globalization offers
the net complex benefits to society and therefore should be embraced on the whole by authorities
and individuals (Dezalay, 2018). Some of the complex roles of globalization include but not
limited to improvement of international trade, lowering cost of living, higher living standard,
making goods and services that are of higher quality to be available, and increasing wealth
around the global society.
Some of the roles of globalization
Globalization encourage advancement of westernization
One common role of globalization is that it favours advancements of westernization,
meaning that other countries are disadvantaged when dealing with the Europe and Americans.

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For instance, in agricultural sector, it favour of westernization by globalization is evident where
the 2nd and 3rd nations face stiff competition from Western Corporation (Zhang, 2014).
Globalization makes nations to be forced to examine their economic policies to be in line with
various challenges as well as opportunities to those multinational corporations and other entities
of global commerce present. The issue of globalization makes nations for confronting the unique
concern of foreign direct investment that forces many nations to determine the degree in which
international influence their operations when they are allowed in their economies. Moreover,
globalization creates the sense of interdependence among countries that could lead to the
imbalance of power among countries of various economic strengths. Globalization leads to be
the major influence of nearly every aspect of modern lifestyle of people and their operations.
From various studies by several economists, it has been reported that globalization offers the net
benefit to individual economies around the universe. It is capable of making markets to be more
efficient leading to increasing business competition (Mosneaga, 2015). The efficiency created by
globalization help in limiting military conflicts and spreading of wealth around the global society
in an equal approach.
Globalization enhances development of nations
Globalization helps in development of direct foreign investment. Through the use of
network advancement in the society, direct foreign investment tends to improve at much greater
rate than the progress in global trade. The investment through globalisation helps in boosting
technology transfer, restructuring of industry, and growth of international corporations.
Furthermore, globalization leads to technological innovation. It helps in increasing competition
in the marketplaces (Lagos & Rosales, 2013). Globalization has the role of stimulating advanced
technology development especially with the advancement in investment in foreign operations.

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Technological innovation that arises due to globalization always improves economic output by
making processes of operations of different companies to be more efficient (da Silva, Santos
Salazar, & de Moraes 017). Globalization also enables large corporations to realize economies of
scale that are useful in reducing costs and prices of commodities. Such reductions in costs in turn
help in supporting further growth in economy, although in most cases such operations can hurt
many small businesses that attempt to compete with other corporations within their place of
establishment.
Globalization reduces trade barriers
Globalization has the major role of supporting free flow of different goods together with
services between different countries due to the reduction in barriers to trading activities. It easies
such modes of conducting businesses by ensuring that it creates a business environment for flow
of investment and capital among countries (Nayar, 2011). Globalization also reduces such
barriers in trade by ensuring that there is a free flow of technology from one nation to another. It
also frees the movement of different labour among nations leading to sharing of ideas on how to
overcome barriers that might arise during trade. Furthermore, globalization reduces trade barriers
by ensuring that it creates room for increment in employment opportunities between nations. As
globalization rises, more and more corporations are setting up businesses in different nations.
Such ideas, in turn, increase the opportunities of employment that individuals at one place have
at any moment. Globalization has enabled people to get better employment opportunities without
having to move to other nations in search of better tasks (Madhok & Raj, 2011). Presently, many
multinational organizations that include Microsoft, Google, Facebook, and Toyota among other
corporations have their head offices in India and many Indians work for these corporations in the
region. However, without globalization, people residing in India would not have had such great