Trends in the Global Business Environment

Running head: TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
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1TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
Introduction
The process of facilitating integration and interaction among companies, government
and people across the world is known as Globalization. The phenomenon of globalization
have grown in the presence of the advanced of communication, transportation technology.
The enhanced level of interactions results in the growth and development of culture,
international trade and ideas (Doan and Wan 2017). The phenomenon of globalization is
considered as the economic process in regards with integration and interaction which
associates/connects with the cultural and social aspects (Steger 2017). The purpose of the
paper is to discuss about the changing state of globalization in today’s world. The problem
with the lack of understanding and knowledge about the lack of knowledge will be
highlighted in the paper. The information about the changing state of globalization is
important because Globalization is believed for opening international access as well as it
contributes towards lowering the cost related to customer service. The core article selected
for the paper is the State of Globalization in 2019. Four questions will be deduced from the
paper in regards with the core article as well as each question will be linked with four related
articles. The paper will be concluded by presenting a summary and link of the selected
articles.
Body
The core article depicted the changing nature of globalization. In the year 2017, the
world experienced a strong growth in regards with the DHL Global Connectedness Index.
The article reflected the scenario of 2018 which the globe experienced threats as the tariff
increased from the dispute of United States and other trade partners. Moreover, the countries
strategically tightened the screening of the foreign corporate takeovers, immigrations and
advanced policies of data localization (Ghemawa and Altman 2019). The development of
such tightening has started to reflect on the international flows. The core article demonstrated

2TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
the declining flow of FDI (Foreign Direct Investment) and a steady increase of trading
activities (Ghemawa and Altman 2019). The article indicated that although the momentum of
globalization is strong but the integration of market is still in limited terms. The multinational
companies’ foreign operational activities around the world generates only 9 percent of global
output as well as the exports of services and goods amounts up to 29 percent of the world
GDP (Ghemawa and Altman 2019). The core article depicted survey results of six countries
in the year 2017, which indicated the trade metrics and international production of around 41
percent and 37 percent respectively. The article indicated that even the trading activities
across the borders may be difficult but the firms, which specializes for overcoming the
challenges, reflects the capabilities of transforming barriers to rewards. The core article
presented various recommendations for the strategies like how can the firms compete and the
functional areas of competing in the presence of global trading activities and the
understanding about business architecture (Ghemawa and Altman 2019). The question of
how to compete in the changing global scenario is answered by the core article. It depicted
that the companies with a marginal or minimal competitive positions in foreign boundaries
will become vulnerable with the increasing threats of globalization. The changing policies
and scenario have to be responded by strategic planning of long-term development. The
question of ‘where’ can be answered by the specific preferences of the firms as it has been
observed that organizations tend to conduct trading activities in its neighbouring countries
(Ghemawa and Altman 2019). Lastly the core article indicated that if a firm changes the
geographical footprint or the geographical strategies, the firm would have to restructure its
organizational architecture. The shift towards the aggregation will require the strengthening
of research and development functions (Ghemawa and Altman 2019). The key questionable
factors are – what were the disputes in the United States, what are the impacts of
globalization are, what is strategic planning and how can firms restructure its organizational
architecture.