Impact of Globalization and Organizational Structure on Business

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Contents
Blog 1.....................................................................................................................................................1
Executive Summary...........................................................................................................................1
Regional trading alliances..................................................................................................................1
Stages of globalization.......................................................................................................................2
Example of globalization....................................................................................................................2
Conclusion.........................................................................................................................................2
References.........................................................................................................................................3
Blog 2.....................................................................................................................................................3
Executive Summary...........................................................................................................................3
Organization Structure & design........................................................................................................4
Example of Organization structure....................................................................................................5
Conclusion.........................................................................................................................................5
References.........................................................................................................................................5
Blog 1
Executive Summary
Today, organizations operate in multinational countries and hence, it is very important for
them to understand the impact, advantages and cautions associated with globalization. An
organization will be successful only when they are capable enough to run business in
different foreign environments. Organization entering a foreign nation should be careful
about the legal and political environment, economic environment and also the cultural
environment.
Regional trading alliances
None of the organizations can survive alone and they are well aware of this fact and hence,
they continuously look for countries which can support them in their business. Few of the
regional trading alliances which have been formed by multiple countries are as follows: -

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 European Union (EU) – 25 European countries came together and have formed a
trade entity for unity economy. This allows the union to grow more individually and
at the same time, they can stand together for unity and support.
 North American Free Trade Agreement (NAFTA) – The Canadian, Mexican and the
US government has signed an agreement to eliminate all the trade barriers among
these countries (The balance 2018).
 Association of South East Asian Nation (ASEAN) – 10 nations from South East
Asian nation has come together to eliminate the existing trade barriers in these
countries.
 World Trade Organization (WTO) – WTO was formed in the year 1991 with the
motto to oversee and produce guidelines for countries to improve their rules on trade
so that the relationships among the nations can be improved and at the same time,
they can also do business with each other by following the pre-defined standard
guidelines (Peterson Institute for International Economics 2016).
Stages of globalization
Every organization goes through different stages before they enter the foreign market
completely. The stages of globalization are as follows: -
 Passive response – Over here, the organization would enter the global market by way
of import to or export from.
 Initial overt entry – The foreign organization would hire foreign representatives or
contract with foreign manufacturers to get the produce.