Impact of Globalisation on International Business and Consumers

This report includes the concept and meaning of Globalisation of business at the global level depending on the investing company he is planning to enter in. It also details the impact of globalisation on international business and consumers.

Running Head: IMPACT OF GLOBALISTAION
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Impact of Globalisation

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Executive Summary
This report of Globalisation includes the concept and meaning of Globalisation of business at
the global level depending on the investing company he is planning to enter in. It includes the
linking of the Globalisation and the concept of developed and emerging countries. It also details
the impact of globalisation on international business and consumers. The need of diversification
and expanding the business brings out the globalisation into existence.

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Contents
Introduction......................................................................................................................................3
Globalisation of Business................................................................................................................3
Advantages and Disadvantages of Globalisation........................................................................4
Developed and Emerging economies..............................................................................................4
Theories of Globalisation................................................................................................................5
Impact of Globalisation on International Business..........................................................................6
Impact of Globalisation on Consumers...........................................................................................7
Conclusion.....................................................................................................................................10
Bibliography..................................................................................................................................12

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Introduction
This researched document is all based on the concept of globalisation of the business ideas,
concepts or the concern itself. The expanding of the business in the reference to the capital, area,
workers, or any other related factor helps to diversify the business. The concept of the
globalisation and other related concepts are a part of this document. The definitions are being
elaborated via different professors and scholars. The economies prevailing on the planet is all
considered into the two kinds, they are developing markets and the ongoing developing market.
The report also includes the goods and bad of the globalisation in the context of the business,
market and the consumers (Anon., 2019). The investors also find an opportunity to be in the
touch with the emerging and new ventures to multiply the wealth associated with them. The
existing organizational structure, including the staff members, employees and other internal
management team is affected with the personnel growth and development in the organizational
market of that industry. The negative side of globalisation also requires the huge amount of funds
and the same opinions from the huge family of the company (Schlais, et al., 2011).
Globalisation is not very recent concept of expanding the business. The world is evolving and
undergoes with numerous changes with trade and business as well. Good and services are now
well connected with the various countries and intra countries (Erixon , 2018). Globalisation can
be easily explained the interconnection between the countries, of goods and services, access
permit to trade and business. The globalisation concept also brings the cut throat competition the
global market, which helps the consumer with variety and adds to customer services (Coulibaly,
et al., 2018). This same concept adds a benefit to the business owners to explore the new market
and apply innovative ideas.
Globalisation of Business
Globalisation is a phenomenon which is dependent on the factors like, Social aspect includes the
communications and the interaction among the people. The people can be the native and
migrated group of persons the communication in them considers the establishment of the
business concern. Cultural aspect includes the existing culture and the values in the country. It
works on the exchange of the ideas, values, and arty opinions (The University of Auckland,

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2019). Politically defines the shifting of attention to the existing intergovernmental organizations
like, United Nations (UN) and World Trade Organisation (WTO). The legal aspects include the
laws, rules, regulations or the policies are governing in the country constraining to the business
and services (Bell, et al., 2018).
Dynamic adaptability in the market due to market forces and the upgradation of the technology
in the world brings out to be demolishing the walls of the countries and make the entry of the
traders into the world (Wolf, 2004). In addition to this various major changes in policy has also
witnessed the presence of globalisation. With the exposure of the globalisation has opened up the
competition with the foreign products and has gained lot from exposure (KUEPPER, 2019).
Advantages and Disadvantages of Globalisation
The basic and foremost benefits of the globalisation across the world are the development and
growth in the organisation. This also adds the increased in manufacturing, divergence, economic
enlargement and improvements in the living standards. Outsourcing of the activities brings in the
jobs and the improved versions of the technologies in developing countries. The demand and the
supply barriers are solved with the international trade among the different countries. Social
justice on the international scale is justified with the human rights worldwide.
The negative impact in the working country also impacts the negative role in the working of the
business. The environmental downfall also impacts that operational unit in the whole group
working in the market (De Mooij, 2019). Globalisation also distributes the wealth in the small
units to avoid the accumulation at a concentrated place. This distribution also creates the lack of
funding at a required place.
Developed and Emerging economies
Emerging economies can also be known as emerging markets or developing countries. Multiple
check points are given in order to declare the country as the stated terms. Average per Capita
Income, Economic Growth Volatility Rate, Currency Floatation, and Potential for Growth - If all
of these are maintained low to the average is termed as the emerging economy else call it as
developed economy (Amadeo, 2019).

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The differentiated matter in both of the stated above economies plays a crucial role in the
accepting the project in the market. The venture will always prefer to open in the developing
market to grow with the benefits of the growing or the development measures in the environment
(Sablok, et al., 2017). Considering the gap between the developed and developing or emerging
economies in reference to the globalisation the people would like to grow with the emerging and
growing economic environment rather than struggling in the developed economy. Examples of
developed countries are, USA, UK, Japan and others (World Population Review, 2019).
Theories of Globalisation
Theories are the basic motto on which any term or a process works. The globalisation theories
are explained and the base to the globalisation. There are many theories associated to the
globalisation the relevant applications are being explained below. The theories are:
1. Theory of Liberalism
The inclusion of liberalism in the process of globalisation acts as extension of the market lead in
the market. The root level arises from the needs of a human as economic welfare and political
liberty. The term transplanetary connectivity is connected with the human drives to maximize
materialistic well-being and to execute the basic freedom. These are the forces which are cross
connected with the planet (Barrow & Keck, 2017).
They are fruitful in the below stated form:
 Technological advances, predominantly in the areas of information processing,
communications and transportation.
 Also appropriate for the legal and institutional arrangement for the presence of market
and free democracy to spread at global level.
The impact of this theory on the current topic of globalisation is the free entry and decision
making process in the establishment of the concern. The working in the business environment
the owner or the entrepreneur should be free from any force to take the decision. The level of
innovation and the freedom of the decision making process in the owned concern is relatively
important to the case. The liberalism is important to the business concern and relevant to the

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objects in removal of chaos, innovative way of working and implementing the plans and strategy,
priority in effective and efficient working in the organisation (Meyer, et al., 2016).
2. Theory of Constructivism
The raise of globalisation also depends on the mental ideology of the people across the countries
on the subjects of interpretation, symbols, language, and images. The positive constructivism
makes the pattern and the psychology of the humans in the manner to accept the concept of
globalisation across the boundaries. The pattern of the production and the governing bodies in
the territory makes a huge impact on the cultural and the socio-psychological factors.
This theory relatively helps the working of the businessman in the different language, and
different aura of the working. With the changed and improved mind set of the individual also
helps in the adjustment and steps taken to establish and sustain the business in the environment.
The impact of social and psychological needs also elaborates to the sustainable of the business.
And to interact with the personnel for clearing the false concepts and doubts enhance the
working of the organization overall.
Impact of Globalisation on International Business
There is a huge impact of the globalisation on the international boundaries. The collective impact
on the working of the international trade across the borders in at global level is the expanding
and diversifying of the current business. The expansion and growth is assured in terms of the
size, location, market, investments and other related factors in the market. The improvement in
the technology is also an aspect of the progressive global marketing (Greenwood, 2013). With
the competition in the market there occurs the improvement in the quality and quantity in the
production within the organisation.
 Expansion and Growth - The globalisation brings in the growth and development in the
organisation or in the business so as to survive in the market globally. Growth can be
seen in various terms such as no of employees in the firm, the increase in the area of the
working office, the addition of the department. It also effects the competition and creates
the quality of product in the market which is in return enjoyed by the consumer, with
variety of products.

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 Rise in Investment Levels (FDI) - The enterprises operating in the domestic market when
switches to the global market needs big amount to be invested for the expansion. That
amount invested in the foreign country would hike the foreign direct investment of that
country (Albloush, et al., 2019).
 Better Production - The quality of the products is enhanced, keeping the pace of growth
and development in the organisation. Accordingly the quality of the raw material and the
process of the production are being upgraded in the enterprise. This upgradation results in
the improvement of the product and the related benefit is acquired in the running of the
business (Oladipo, 2016).
 Interconnections- the improved connectivity among the international boundaries makes
the good relations among the markets of different countries. More number of investors
can now approach in the business opportunities and the examination of the new and
emerging markets with a distance. Risks and profit chances are increased with the
technology and communications (ModulTrade, 2018).
 Being Competitive in nature- undoubtedly the process of globalisation has increased the
level of competition in the domestic market. In order to gain the number of customers the
business concern has to improve the quality in terms of production and the after sales
services. With the enhancement in the local areas there brings in the opportunity to the
sourcing and outsourcing (Bahadir, et al., 2015).
 Technology and efficiency- the technology deviation in the market brings out the
improvement scope in the technical aspect in the working of the organisation. More
advanced technology is needed with the sustainability and growth in the market. The
importance of technology in the market also ensures the efficient working in the
organisation. To fill the deviation the importance is the technology in the operations.
Practically the example can be stated of the General Motors (GM). This General Motors is a
Multinational company which manufactures and assembles the parts of vehicle in United States.
They are now currently working in not less than 120 countries inclusive of China. They entered
in 2015 in China. When they started operating into China they gained the top line and currently
met with the new 5 million customers in China (Motors, 2018).

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Impact of Globalisation on Consumers
With the globalisation in the business there occurs a positive and a negative impact on the
operations in the business. A consumer is the king in the market enjoying the benefits from the
competition raised with the entry of new venture in the market. After globalisation process in the
market the customer is now full-fledged with the new and attractive range of a related product in
the product line. The example can be cited as, when any consumer asks for a specific product,
the seller in the global market produces various kinds of the product to buy from the given
options.
 Varied Products - Consumers enjoy an advantage being the king of the market. They are
cherished with the available variety of products in the market. As there are many sellers
in addition to the domestic sellers with the globalisation1 in the market, so the buyer can
have access to the many listed products.
There is variety of product line in the market in the country. The stated example is the
availability of the diversified product range under one product. Like iPhone is an
American product but is also available in different countries. In the Australian market
there is now available of the products in the market from all of the geographic sections of
the planet.
 Enhanced living - Due to globalisation, consumer is now accessible to new and
innovative products. The people are now aware of the new and advance products due to
the advanced technology in the foreign company investing in the market (Mooij, 2019).
There is always an improvement and enhancements in the living standards with intervene
of the new ventures in the domestic country. The native country is being tapped with the
new and innovative idea for the completion of the allocated task into the venture. This
quick in the decision making process save the time and energy in the person to save time
to think and raise the standard of their own living.
 Customer satisfaction - Globalisation calls the high competition and homogenous
products. And therefore they work on the customer satisfaction in terms to sustain in the
competition (Noe, et al., 2017).
They also get an ease in the access of their favorurite brands in their reach. They now do
not have to reach a distant place to curb their craving for a particular band or product.

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The competation also now focuses on the customer satisfaction derived from the usage of
the product and focuses on the services given with the products.
 Employment Generation - Globalisation invites the young generation and all
demographic structure to get hired in the new established business in the town market.
Entrance of foreign companies in the Australia market directly enhances the job
opportunities for individuals. This is because entrance of foreign companies enhances the
manual requirement for the company. Example: ALDI, COSTCO is a foreign
multinational supermarket brands. They also have their stores in Australia. Thus, to
provide the customer with essential goods and services, these companies are hiring
individuals from the Australia (Churchill, et al., 2014).
 Availability of Goods - Some goods and services is now available which earlier were not
available due to lack of connectivity among the stated countries. Earlier, country usually
relies on import to attain specific products and services. With the development of
globalization, foreign companies have established their footprints in the Australia. Thus,
it has resulted in the reduction of import because foreign MNCs are offering their
services directly to the Australia. Despite, Woolworths, target there is availability of
international foreign supermarket stores in Australia. ALDI is a German based
supermarket company. It offers its products in Australia as well. With the entry of this
foreign firm there comes an ease entry in Australian market which provided a
competition in the industry and the good range of products to the customer of Australia in
the market (Barnett & Morse, 2013).
 Transparency - Earlier there was no transparency between the seller and the buyers which
when billed the total amount exceed the actual stated price of the product. They charged
the extra amount in lieu of the hidden charges but now are no true. The transparent
working in the organisation is also an invite to the potential buyer and potential investors
in the company. The task of the owner is to increase the sales and cut in the profit with a
happy customer to survive in this competitive world. This nature of transparency also
helps the company to make an error free and efficient environment in the organisation.

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Conclusion
Globalisation thus has given up new chances as well as generated the new host to the new
departments in the organisation in order to survive in the market. It can be seen as opportunity
and threat both to the international business. The business can raise their both standard of living
and working as a benefit of globalisation. They have both positive and negative impact like they
induces the investment and allows overall growth and development. But also involves in the
communication issues and attitude problems in the foreign country. Globalisation also impacts
the consumer behavior with the positive attitude of buying with variety of products. They also
get benefit of the after sales service in a proper and efficient manner.
The outcome of this project also includes the two theories, the theory of Liberalism and the
theory of Constructivism which impacts the working of the globalisation the in regards to the
global impact of the working in the foreign country. This project highlights the working impact
of the globalisation on the consumers and the business venture as well. The concept of
globalisation includes a wide approach to the understanding the working pattern and the
engagement of the operations in the particular industry. The globalisation provides the multi-
functionality in the industry and firm level both.
Thus, from the above discussion it is concluded that globalization has a major positive impact on
the individual as well as on the country. The rise of globalization has developed harmonious
relations between various countries. From the individual’s point of view, it has assisted in
generating higher employment opportunity, less unemployed people, availability of more
alternatives products, availability of better quality products. Thus, it has helped the individuals in
enhancing their lifestyle. Hence, globalization benefits cannot be ignored as it has many positive
impacts.

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