Impact of Globalization in Today’s Business

RUNNING HEAD: GLOBALIZATION 0
GLOBALIZATION
Student’s Details-
AUGUST 31, 2019

GLOBALIZATION 1
Impact of Globalization in Today’s Business
Globalization has risk and benefits as well when it comes it comes to crossing the boundaries of
a nation and has a huge impact on the overall profitability and productivity of the buisness
(Hirst, et al., 2015). It can be beneficial for the companies as it can bring new technologies
and also helpful in the overall economy as it brings job opportunities. This has led to an
increased standard of living. The main purpose of globalization is to enhance individual’s
economy, increasing the competition by entering into new markets, lowering the military
conflicts and expanding the economic wealth of the nation (Kuepper, 2019).
Moreover, globalization has positive as well as negative impact on the today’s business. It can be
noted that doing business internationally can be offensive as well as defensive play. Further,
globalization can enhance the marketplace of the business and helps in reaching majority of
customers abroad. Therefore, this ultimately helps in increasing the revenue. Globalization has
negative impact as well. In today’s business, there is high competition and if the business is not
able to satisfy the customers, then the competitors will take the advantage and establish the brand
loyalty. Also, the companies have following impact of globalization:
Technology
In today’s business technology has a major role when the companies are going for the
globalization. It leads to gaining of new technology which can help in taping of new
opportunities (Nikolova, et al., 2017). Technology brings new ways of doing business which
can benefit the company in many ways. By taking the case situation of Rio Tinto which is the
one of the largest mining companies of Australia, the company has made outsourcing partnership
with CGI group. This has given huge opportunity for the company to take digital transformation
initiatives. As a result of the partnership, the company updated their technologies and also
integrated their management perspectives.
Knowledge
Globalization has led to exchange of knowledge from one country to another. Globalizing the
products helps in getting knowledge required for expanding the business. Knowledge regarding
the trends, the latest techniques and operating processes are required by the business to be ahead
of the competition (Oshri, et al., 2015). Similarly, Rio Tinto had outsourced their services