Exploring Contemporary Business Issues in a Globalized World

This essay examines the impact of globalization on contemporary business issues. It begins by defining globalization as the increasing interaction of countries through international flows of money, culture, and ideas. The essay discusses how globalization enhances competition, promotes technology advancement, creates opportunities, and increases investment. It identifies several contemporary issues related to economic developments, competition regulation, outsourcing, labor costs, health and safety, and legal perspectives such as agency, employment law, contract law, and tort law. Furthermore, the essay explores the external environmental factors affecting globalization, including socio-cultural, economic, political, and technological factors, and how these factors influence business industries, wealth creation, political stability, and technological applications. The essay concludes by emphasizing the complex and multifaceted nature of globalization's impact on business operations and strategies.

Contemporary Business Issues in a Globalized Environment
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Table of Contents
Introduction..............................................................................................................................................................3
Discussion of the Globalization...............................................................................................................................3
Conclusion...............................................................................................................................................................8
References................................................................................................................................................................9
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Introduction
Various concurrent business issues in the globalized environments determine varying number of external
factors, which affects the operations and strategies of a business. It enables all the delegates to establish critical
awareness of implications of those factors. This also facilitates the development of practical and academic
understanding of operational and strategic implications specifically for the business organizations. Delegates
with varying kinds of opportunities are provided in order to develop several most significant skills of problem
solving and analysis for use inside the organisation. Here, in this present study, globalization has been discussed
briefly. How this globalization can affect the business organizations, and their concurrent business issues are
also mentioned in this chapter. This essay has shed lights on three environmental factors and how these affect
contemporary business problems.
Discussion of the Globalization
Globalization is the enhancing interaction of countries, states, and people along with the growth of international
money flow, culture and ideas. Globalization is initially the economic integration process with cultural and
social aspects. It includes various economic resources, goods and services, data, and technology. Globalization
leaves huge impacts on the business organisation. According to Scherer, 2014, global business conduction has
always leaves a great impact on both financial and pleasurable experiences. The ability of international
business conduction is too much necessary to compete with the several competitive business markets worldwide
(Dunning, 2014).
Expansion of geographic footprints in one business has the risky and expensive propositions. In current years,
globalization has softened the free trade, national borders that in turn enhanced the integration of current
economy. It also affects the revolution of communication and information (Malm and Hornborg, 2014).
Furthermore, based on the innovation’s culture, the new economy has been developed that involves new
technologies, new ideas and new initiatives. Economic development and growth of the new economy are
preceded by a difficult structural realignment of business enterprise cluster, investment streams, production
process transformation and adoption of the approach of niche marketing. This results in fundamental
restructuring of the economic society. Innovation acts as a catalyst and its role drives the economic growth that
surely required to be acknowledged (Kasemsap, 2014). Globalization affects most of the developed as well as
developing countries and as a result, the following results have been identified.
 Competition has been increased: one of the most important benefits of globalization is, ‘enhanced
competition’. With increasing competition from different foreign companies and brands throughout the
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world, including UK, every nation is impelled to enhance the quality and standards, customer services
and satisfactions (Wetherly and Otter, 2014). It benefits the economy and customers simultaneously and
also raise everyone’s living standard. Sometimes it leaves a negative impact on UK’s economy.
 Technology advancement: Rise in technology and knowledge in UK are always opened to the specific
area, which is based on the expansion and growth. Good knowledge of the companies helps to make an
international business with generating large number of revenues within a short spell of time. In current
years, huge technological changes bring positive impacts on UK based companies. Besides, it also
affects the tertiary sectors along with the primary and secondary industries always in optimistic manner
(Malm and Hornborg, 2014).
 Opportunities are rising: A large number industries have been developed throughout the world and as
a result numerous resources are available. It provides opportunities to a lot of people to grow
exponentially with innovative resources. Specially in UK, and many other foreign countries, there are
vast ranges of jobs available as the countries have decided to give employment to all the interested
people. According to Floud et al. 2014, this is the only reason why more and more people are willing to
take these lucrative benefits.
As a result, immigration rates are also increased and provide them a greater chance to grow socially and
economically. Millions of people immigrate to the developed countries in order to get a god employment
opportunity. For that instance, globalization has really helped the people to bring the changes.
 Rise in the level of investment: A large number of investments in the foreign countries helps the native
cites and other local industries to grow at a rapid rate. It signifies that every nation should always be
opened since they face highly beneficial ventures for them. A large number of foreign investments help
various companies in UK and other developed countries make huge profit in terms of revenues. Now,
numbers of countries imports various things so that global growth can share their abilities and resources
that have not been done in previous 50 years. As described by Stroeva et al. 2014, the main viewpoints
of globalization offer various opportunities for growing the UK based industries at rapid pace. As the
countries are growing rapidly with enhanced resources, this is not impossible for its internal industries
that they will also grow with all the necessary benefits.
This is another most important thing that needs to be considered within the new economy. This is based on
different export based models of growth that in turn espouses the overall economic benefits of the export
process. This is done in the form of income generation, creation of employment, contributors of economic
growth (Malm and Hornborg, 2014).
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From the economic and legal perspectives, several contemporary issues related to developments are included
here,
 Economic developments
 Regulation of the competition
 Globalization that includes the outsourcing, productivity gap, labor cost and migration issues, imbalance
of world trade of UK
 Health and safety particularly at work
 Agency: duties and right, termination and formation, authority of the agents
 Role of employment law involved in business
 Contract: validity, formation, contracts of standard forms, implied terms, remedies of contract violation,
end of the contractual duties.
 Tort: liabilities of the occupiers, defamation, negligence, and vicarious liabilities.
 Implications and characteristics, and the form of varying kinds of business organisation
These are some of the contemporary issues faced by most of the industries in UK and other developed countries
(Carroll and Buchholtz, 2014). Globalization plays an important role here by measuring the macro and micro
economic policy. It positively affects the growth of those industries.
The external environmental factors affecting the globalization are:
Socio-cultural factor- The social and cultural globalization involves the crossing of border movements and
openness of media that has also raised the population awareness and the benefits involving the foreign lifestyles
as well as the food behavior. The effect of social factor on globalization has therefore severely affected in the
urbanization of the different technologies that are associated either with the deduction in energy expenditure
over the time period. In addition to that, the several elements of globalization consist of further integration of
different indicators of around 80,000 individuals.
According to Lapiņa et al. 2014, one of the major impacts of globalization involves the combination of difficult
social structure and increasingly upgraded technology. All these are actually sustained by several changing
ideas as the most desirable progress are always accelerated by social changes. When the dimension of
globalization affects the societies, work, culture regarding to business or work, this refers to the social impacts
of globalization. There are various other social aspects beyond the working dimensions, social protection,
income, employment. In every large industries and SMEs, the whole concept of social justice has become one
of the most distant dreams that have to be accomplished (Malm and Hornborg, 2014). This specifically aims at
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establishing such a society that is based on solidarity and equality concepts, dignity of all human beings and
also the usefulness of each and every human being.
When the talk is raised regarding the gender gap in terms of globalization, this has been observed that women’s
participation is widely increasing in every field including the business industries. However, evidences have
shown that women are working as casual labors till now. Due to increasing influence of socio-cultural aspects,
media, crimes and violation against women has considerably increased in current years. According to (), as
globalization is still in progress, the future cannot be predicted too much for the business industries in UK and
in other developed countries (Lapiņa et al. 2014).
Economical factor- The prime measure of economic globalization is the appropriate KOF sub-index that is
complex measurement consisting of various elements such as trade (in percentage of GDP), foreign direct
investment (FDI), stock exchange (in percentage of GDP), investments regarding portfolios (in percentage of
GDP), foreign incomes (in percentage of GDP), taxes levied upon the foreign goods and services (in terms of
present revenue), etc. The Index of Economic Freedom from the Heritage Foundation has taken into account the
number of factors that is potentially important in the decision-making through the foreign investors that is
engaged in the economic relationship with the country concerned which includes quantitative measure of the
capability to initiate the operation that is closely associated with the business. The government definitely
introduces some programs in order to get benefited from the business sector including both imports and exports.
As stated by Chen et al. globalization involves the maximization of economic activities, across the boundary of
different developed as well as developing countries. In between UK and other developed countries,
globalization has been indicated with advancing economic interdependence and economic integration.
Enhanced cross border movements of technology, goods and services, information in terms of economic aspects
and people has been developed. According to Stroeva, 2014, globalization brings a complete new potential for
wealth creation and development. There is an argument that economic impacts create inequality, unemployment
and poverty issues, whereas according to the views of others these all aspects are reduced by globalization. The
main aim of globalization is to meet the requirements and need of the business industries, enhance the growth
and maximize the revenue generation within short span with the international expansion of business.
In UK, there is maximum number of export import facilities, trade, increasing wealth and trade facilities that
help various most reputed industries grow at a faster pace rather than less reputed industries in other developing
countries (Gupta et al. 2014).
Political factor- It is often noticed that the advantage of the political factor is a complex measure that includes
information regarding the four elements namely the number of foreign embassies within the country,
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participation in the International Organization that is UN Security Council mission where huge number of
international treaties are required to be signed. The element is designed to measure the range of individual
country’s political involvement both nationally as well as internationally. The political conditions involving the
current relationship of people with respect to the government also affects in the globalization to a great extent.
The stability of the people regarding the society involves the financial condition, etc.
According to Kopnina and Blewitt, 2014, impact of political globalization influence all the non-governmental
organizations in UK. Terrorism is growing to a greater extent with globalization, which is actually the response
of specific group of neglected people who are humiliated for several years. Democracy is the ultimate
proportions of political stability. Political Globalization affects various business industries of entire nation of
UK and other developed countries that in turn lead to massive scales of inefficiencies, corruption; lower
transparency (Kasemsap, 2014).
Technological factor- According to Scherer et al. 2014, different technological factors highly affects UK based
business industries to a greater extent. When the particular business is concerned with technological
applications, investments, these all are affected through globalisation. It also leaves an impact on the
technological effects on UK based retail industries and other large investment businesses. The quality and types
of goods and services produced in various regions, varying kinds of equipment and plants that are used by a
company are specifically determined by the technology employed by that organisation (Floud et al. 2014). If the
specific industry in UK targets some of the foreign industry in other places, they can get the access to reach its
brands.
The implementation of new technology has actually helped the country like UK to get an extra advantage in
terms of tourism, education, business sector. One of the key factors of globalization is the adaptation of modern
technology in daily life. The government has taken this into consideration and has applied several technologies
in areas such as transport system, online availability of different facilities for the outsiders as well as for the
citizens of UK. The introduction of online ticket booking and other Electronic Fund Transfer System have been
extremely beneficial for enhancing the overall development of the country as a whole (Tarutė and Gatautis,
2014).
Legal- The different rules and regulations thus developed by the UK government in most cases have turned out
to be supportive for the business sector. But during the recession or inflation period it gets severely affected. A
country is said to be developed only if the business sector existing within country is globalized. For maintaining
a good reputation in front of the foreign countries, the legal parameters of a country must be followed. At times
it has been seen that small-scale industries try to find a gap within the legal structure in order to be in the side of
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profit but this approach from such industries really hampers the growth of a country as the economy of the
nation gets affected.
There is a critical argument that sometimes goes in favor of globalization. It involves several benefits of free
trade. In a business, more freedom always involves greater prosperous society. More political and economic
stability, humanitarian aid is also included in the global culture. Some arguments states that harmony is
encouraged by interdependency. According to Gupta et al. 2014, varying kinds of information exposure is
provided by cultural assimilation. Someone argues that cultural assimilation supplies the huge information
exposure but this argument varies from person to person. In many developed business industries in UK,
different areas are improved that in turn maximizes the growth rate, revenue generation, business development
at a higher pace, and ease of doing business worldwide.
Whereas, according to some other socio-globalization adversaries, different negative impacts of cultural
assimilation outweigh the advantage of global culture. These negative impacts mainly affect particular or
individual communities. From this specific perspective, all the important features are devalued by global culture
that was mainly significant to the predecessors. In order to benefit the specific interests, most of the winners of
large corporations in UK and other developed countries guide the global activities. Skilled and experienced
workers, hard-working personnel, are here considered as the winners. But, according to Dunning, 2014, low-
wage and unskilled workers, less active persons are the ‘losers’ who are very much willing to face various
potential difficulties regarding the displaced business opportunities, just because of outsourcing. On contrary to
this, there is no economic and political instability due to globalization.
Conclusion
Historically it has been surveyed that globalization lasts for a short time period. In UK, globalization lasted for
at least 40 years, not more than that. After few years, it creates a huge rejection from the consumers and that
problem is faced by every large and medium size industries. Economic crises are one of the most fundamental
things that need to be considered in every nation. This is because, it provides technological disruption, and
security in other different fields. However, before implementing the business policy, it is necessary to
understand the overall business environment. This decides whether the business will get success or not. In every
developed countries including UK, the company identifies the specific environment where they can formulate
every important policies in order to reach the global level. This overall study describes various external factors
of globalization by implementing which, achievement of goals and objectives in an organisation can easily be
done with ease.
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