Globalization: Global Arena Analysis Report - Business Development

This report provides an in-depth analysis of globalization, examining its various dimensions and impacts on businesses. It defines globalization and a global company, exploring the globalization of market presence, supply chains, capital base, and corporate mindset. The report discusses the drivers of globalization, including free market ideology and technological advancements, and explains why globalization is here to stay, highlighting its effects on poverty reduction and technological progress. Key features of the digital economy, such as mobile and email communication, are discussed, alongside the impact of digitization on the global landscape, including enhanced customer access and reduced transaction costs. The report emphasizes the importance of companies adapting to the changing environment and provides insights for managers navigating the global economy, including the need for global knowledge, language skills, and cross-border experience. The report concludes by underscoring the importance of adapting to the current business environment.

Analysis of the Emerging Global Arena
Globalization: Globalization is the process by which businesses or other organizations develop
international influence or start operating on an international scale. It differs at worldwide level, at
the level of a specific country and at the level of a specific industry. It is a process of interaction
and integration among the people, companies, and governments of different nations, a process
driven by international trade and investment and aided by information technology. Likewise, for
centuries, people and corporations have invested in enterprises in other countries.
Global Company: There are arguments regarding the definition of Global Company. There is a
fact that globality is a multi- dimensional phenomenon and can never be understood fully from
just one perspective. In a sentence, a Global Company is a company which operates in at least
one country other than its origin.
Four Dimensions of Corporate Globality:
 Globalization of Market Presence
 Globalization of Supply Chain
 Globalization of Capital Base
 Globalization of Corporate Mindset
Globalization of Market Presence: In this dimension, companies target customers in all major
markets. Within the same industry, globalization of market presence can range from relatively
low to high.
Globalization of Supply Chains: In this dimension, companies expand their business to the
location where they can make their maximum profit, then less than the previous location, after
that less than the previous location and it goes on.
Globalization of Capital Base: In this dimension, companies intend to target the most optimal
sources of capital.
Globalization of Corporate Mindset: Corporations create a correlation between culture and
markets with an ability to integrate across the diversity of them. According to the article, some
key outcome indicators of the globalization of a company are: international dispersion of

revenue, international dispersion of asset base, intra- firm trade in intermediate and finished
goods, and intra- firm flows of technology.
What is Driving Globalization: Globalization occurs because specific managers in specific
companies make decisions. Globalization is becoming increasingly feasible and desirable. Free
market ideology, technical advances, shifting of economic center of gravity, opening of borders
to trade, investment, and technology transfers- these are the main reasons why globalization
occurs.
Why Globalization is Here to Stay: Globalization has changed the world economy forever.
Globalization has caused reduction of poverty rate since the capital mainly comes from a few
rich families in international trades. Moreover, technological progress is also an effect of
globalization.
Key Features of the Digital Economy: Mobile Communication, E-mail communication etc. has
put a great impact on globalization. It is no wonder Internets is a blessing for globalization. The
usage of internet and other technological equipment results in the benefit of business.
Impact of the Digitization on the Global Landscape: In Business, Digitization has enhanced
access to customers, ability to create information- based products. Digitization ensures
transparency of information and increased ability to access technology, ideas, and talent from
around the world. Moreover, it also has decreased transaction cost.
Globalization for Companies: Every company must keep pace with the dynamic changes in
environment. Companies should be unique while adapting those changes so that they can have
some extra advantages in this competitive world. There are some fundamental changes in
world’s economic landscape which are considered as inevitable. These trends may help
companies to bring changes in their steps which should be taken by thinking of future.
Globalization for Managers: A company’s future depends on how it is getting managed in
national and cultural borders. With this rapid change in world’s economy, a manager must adapt
global knowledge, skills and experience. Formal education regarding development of language
skills, knowledge regarding diverse market and culture can help them in this competitive world.

Participation in cross- border terms and projects depict coordination with company’s activities
across border. Immersion experience in foreign culture can also be another quality.