Challenges to Globalisation: Strategies for Companies

INFORMATION SYSTEM

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Contents
Introduction............................................................................................................... 2
Body....................................................................................................................... 2
General.................................................................................................................. 3
Discussion.............................................................................................................. 4
Conclusion................................................................................................................ 5
REFERENCES........................................................................................................... 6

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Introduction
Advancements in technology have led to increase in the globalisation or say it has created a
more interconnected world. But in the last few years it can be seen that there is increase in the
stiffness within the globalised world. This is also evident from the fact that world trade has
become more complex (Brondoni, 2014). Governments are forcing companies to invest more
in their countries so that there can be more job creation in the country. Due to tensions in the
global business environment, bigger nations are creating tax barriers for each other. In spite
of the fact that proportion of information, trade, people crossing borders as well as capital
flow have increased significantly but there is tit for tat kind of tariff being imposed by
different countries on each other. The growth is slow and the amount of FDI has decreased
significantly. The opportunities and the challenges in the international market have increased.
Body
It is seen that firms all across the globe is trying to make their position in different markets so
as to find new sources of income but most of them are failing to make significant mark in
their market. Most of the companies that have crossed borders are only present in few
markets or mostly in the neighbouring markets. This is due to the fact that CAGE (Cultural,
administrative, Geographical economic) factors plays a major role in the success of the
organisation in the foreign markets. The larger the distance between the two nations, more is
the difference in terms of CAGE factors (McGuire and Bagher, 2010). This will have
significant impact on the way business is being done in any nation. Even the world’s largest
firm are generating 60% of their revenues from just four nations. Home nation plays most
significant role in their profit generation. Where to compete is a big question for all the
companies irrespective of their size structure and strengths. The companies that are having
marginal competitive position in the abroad market are more likely to fail. There is a need of
creating rebalance in the international strategies that are time-tested (Ghemawat and Altman,
2019).
Most of the firms have tried to become more local than the local firms. This has taken their
uniqueness. In order to show themselves as local companies they are even changing their
names. Marketing has just become the game of perception. It is still easier to win at home
rather than winning across borders as agitation against globalisation is increasing (Orbie,
2016). In the last few years companies are retreating much faster than ever and are giving