Globalisation: Examining Positive and Negative Effects on Business

This essay delves into the multifaceted impact of globalisation on business development. It begins by defining globalisation as the integration of financial products, services, technology, and culture across national borders, emphasizing its role in increasing production and facilitating international exchange. The main body of the essay explores the positive effects of globalisation, such as enhanced opportunities for business growth, access to resources, innovation, and the ability to build a strong brand image. It also discusses how globalisation removes trade barriers, expands market reach, attracts new talent, and enables businesses to produce low-cost products. Furthermore, the essay acknowledges the challenges associated with globalisation, including cultural and linguistic differences, increased competition, and unequal profit distribution. The conclusion synthesizes these points, highlighting globalisation's significance in providing opportunities for business while requiring strategic planning to mitigate its negative impacts. The essay references various academic sources to support its arguments and provides a comprehensive overview of the topic.

Developing English
Lang Skills (DELS)
(Distinction Criteria)

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
REFERENCES................................................................................................................................4

INTRODUCTION
In today's world, business environment is becoming dynamic and innovative that it is
changing very rapidly. There are various reasons for business world to change drastically such as
competitive pressure, globalisation as well as quest for productivity (Andrews, Gal and
Witheridge, 2018). Every business enterprise wants new opportunities in order to increase the
profit. So, they expand their business in the global platform which is an emerging trend in
business environment. This particular essay covers the aspects of globalisation along with the
positive and negative effects of globalisation.
MAIN BODY
Globalisation refers to process of spreading the business, financial products, services,
technology across the national borders. It is basically an economic process of integration and
interaction that is associated with different culture as well as social aspects (Perraton, 2019). Due
this production has been increased as well exchange of goods and services takes place on
international platform. Through globalisation business enterprise gains competitive advantage. It
is basically an economic process of integration and interaction that is associated with different
culture as well as social aspects. In the modern world, globalisation has become one of the most
important aspects as it leads the business to grow more rapidly and increase the efficiency of the
business (Aryal, Cockfield and Maraseni, 2018). Through globalisation business have numerous
opportunities to grow and get success. Business enterprise can tap the resources of other country
in order to develop new products and be innovative. In order to become innovative, business
requires latest and updated versions of technology and this can only be achieved through
globalisation which results in increasing market base. This also leads the business enterprise to
build good brand image and goodwill among the market.
Globalisation has removed the barriers to trade as well as communicate with the people
of various countries. Due to rise in globalisation, there are major changes happening in the
business world. As it helps the business to get access to larger market as instead of selling
products in their country, they are expanding their sales to the various other country also. This
leads the business to boost their sale and increase profitability also (Berdiev and Saunoris, 2018).
This also leads in acquiring new customers as well diversify the revenues as well. Along with
this globalisation also allows the business to access the new talents as well. Globalisation gives
opportunity to the businesses to explore new talent which are not available in their country. This

will assist the business management to be competitive in the global market (Smith, Burke and
Ward, 2020). Globalisation also leads the company to produce low cost product by finding new
ways of producing the goods or through different resources as well as technology. This helps
them to drive down the prices of their products in competitive market and develop immense
number of choices in front of their customers (Beumer, Figge and Elliott, 2018). Through this the
business can get access to foreign culture, religion, food which can have a positive impact on
their profitability as well as brand image. Through globalisation business gets wider
opportunities to make investment. This allows the companies to issue share in global platform
through which makes their financial position more strong. This allows the business to get access
of the share in the international economy which can make the country build goodwill among its
competitors.
Globalisation offers many benefits to the business but there are some challenges which
business needs to face because of advancement in globalisation. As the country in which the
business organisation is expanding their functions or provide service have different culture,
language and religion. Due to which they may face problem in recruiting and managing the
employee which can hamper the normal functioning of the business. The business also needs lot
of research and survey of the particular economy in which the business organisation is expanding
its operation (Hammudeh and et.al., 2020). This can be very expensive and time consuming for
them. They must be update with the political, legal environment which can be very challenging
for the business management. Due to globalisation the competition is not local but competition is
on the international platform. This can affect the capital of the business as lots of investment is
required in the process of marketing. As already established business have strong market base as
well as competition which can be difficult for the upcoming business to gain market position.
There is unequal distribution of the profits in the global market as they need the resources which
are unique and dynamic but getting access of those resources can be very costly (Sutcliffe and
Glyn, 2019). So, due this their domestic as well as international business can be affected and
balance of profitability gets affected.
Globalisation have both positive and negative impact on the business. As some of the
positive impact can help the business to achieve the growth and success on the international
platform (Nerad, 2020). While some of negative impact can make the business fail. If the proper
survey and research are done on the global economy, then business can find the opportunities as

well as threat. By identifying and evaluating opportunities and threat the business can make
proper strategies that can help them to expand the business on the global platform.
CONCLUSION
From the above essay, it can be concluded that globalisation is considered as one of the
most phenomena due to which business have lots of opportunities. This can help the business to
gain competition as it grants the business to use different technologies, specialised manpower
and many more. This leads in developing the products of lower cost as well in a dynamic
manner. In addition to this, globalisation have negative impact also which can hamper the normal
functioning of the business. So, business requires lots of strategies planning in order to expand
the business in global platform.

REFERENCES
Books and Journals:
Andrews, D., Gal, P. and Witheridge, W., 2018. A genie in a bottle?: Globalisation, competition
and inflation.
Aryal, S., Cockfield, G. and Maraseni, T.N., 2018. Globalisation and traditional social-ecological
systems: Understanding impacts of tourism and labour migration to the transhumance
systems in the Himalayas. Environmental Development, 25, pp.73-84.
Berdiev, A.N. and Saunoris, J.W., 2018. Does globalisation affect the shadow economy?. The
World Economy, 41(1), pp.222-241.
Beumer, C., Figge, L. and Elliott, J., 2018. The sustainability of globalisation: Including the
‘social robustness criterion’. Journal of Cleaner Production, 179, pp.704-715.
Hammudeh, and et.al., 2020. Nonlinear relationship between economic growth and nuances of
globalisation with income stratification: Roles of financial development and
governance. Economic Systems, 44(3), p.100761.
Nerad, M., 2020. Governmental innovation policies, globalisation, and change in doctoral
education worldwide: Are doctoral programmes converging? Trends and tensions.
In Structural and Institutional Transformations in Doctoral Education (pp. 43-84).
Palgrave Macmillan, Cham.
Perraton, J., 2019. The scope and implications of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Smith, C., Burke, H. and Ward, G.K., 2020. Globalisation and indigenous peoples: threat or
empowerment?. In Indigenous cultures in an interconnected world (pp. xviii-24).
Routledge.
Sutcliffe, B. and Glyn, A., 2019. Measures of globalisation and their misinterpretation. In The
Handbook of Globalisation, Third Edition (pp. 77-90). Edward Elgar Publishing.
Tridico, P. and Paternesi Meloni, W., 2018. Economic growth, welfare models and inequality in
the context of globalisation. The Economic and Labour Relations Review, 29(1), pp.118-
139.