Globalization and its Impact on Business Today: Outsourcing and Offshoring Contribution to Globalization using Apple Inc. Case Study

Student Name
[Email address]
Research, discuss and identify how ‘globalization’ impacts business today,
and what international managers must know to stay ahead of the game.
Identify and discuss how outsourcing and offshoring contribute to
globalization using a company case study to identify the challenges,
opportunities and problems that globalization presents.
MANAGING ACROSS
BORDERS
Institutional Affiliation(S)

P a g e | 1
Executive summary
Globalisation of businesses includes flow of services and goods to foreign countries,
enhance capital flow, spreading of technology, reducing trade barriers and tariffs along with
spreading knowledge beyond cross borders. Globalisation of companies can impact decision
making processes in management due to complex and interrelated decisions which requires
global managers develop skills and abilities to stay ahead of the game. In globalisation,
outsourcing and offshoring have also developed consequently due to increased knowledge of
technology and enhanced transportation available between cross border nations. Moreover,
such openness of knowledge has allowed growth in businesses where every firms have
become more or less dependent upon each other and ones who reflects best practice, stays
competitive and successful in global market. This paper will analyse concepts related to
globalisations and its impacts on current businesses along with finding out what global
managers require to achieve success in global business environment. To understand benefits
and risks associated with outsourcing and offshoring, this paper will analyse literature related
to it along with applying it in Apple Inc. company to analyse the case study reflecting
outsourcing activities undertaken by Apple Inc. while considering globalisation and cross
border operations.

P a g e | 2
Table of Contents
Introduction................................................................................................................................3
Main body..................................................................................................................................4
How does globalisation impact contemporary businesses”?.................................................4
Essential skills required for managing global firms...............................................................6
Outsourcing and offshoring contribution to globalization.....................................................7
Case study..............................................................................................................................9
Conclusion...............................................................................................................................12
References................................................................................................................................14

P a g e | 3
Introduction
Globalisation can be considered as an opening of intercontinental borders to allow
flow of trade, immigrations, foreign direct investments and exchange of technology and
information. However, many authors and researchers view globalisation as a rise in
movement among humans, capital and products through many global boundaries.
Globalisation was first derived from a Greek word ‘Globe’ that means worldwide. Later, this
got developed and started reflecting the integration of international and national economies
through capital flow, trade and migrations. It can be noted that high rate of inter-linkages and
interdependence among different nations is been occasioned by speed of cultural, social,
economic and political interactions that can define globalisation in more specific way. At
present, globalisation is considered as very complex and multifaceted phenomenon due to
continuous growth seen in global companies where they need to understand the reason behind
selection of appropriate international managers who poses skills and knowledge required to
manage global firms effectively (Edwin & Okpara, 2015).
Global managers are the ones who runs and develops international firms and requires
working under various international positions, and to stay ahead of the game, they play
interpersonal roles to coordinate and make interactions with employees alongside providing
direction and instructions. Offshoring and outsourcing are another element that can be related
to globalisation process in which international firms hires external organisations to perform
business functions in other country like developing or manufacturing products. Offshore
outsourcing builds new trend within business management at a global scale and are based
upon entrusting and performance of activities in those entities where the registered offices are
situated in foreign nations (Rzepka & Hławko, 2016). Though such activities bring various
opportunities and advantages to the global firms, they come with additional challenges also