International Business: Globalization Impacts and Analysis

This report delves into the realms of international business and globalization, elucidating the core concepts and their intertwined relationship. It defines international business as encompassing commercial transactions across nations, driven by profit for private companies and political factors for governments. The report highlights the features of international business, including large-scale operations, economic integration, global competition, and industrial development. Furthermore, it explores globalization as the integration of markets, technologies, and cultures, leading to increased international trade and interconnectedness. The report then analyzes the effects of globalization, categorizing them as positive, such as foreign investment, competition, security, and cultural management, and negative, including job insecurity, price fluctuations, and cultural impacts. Ultimately, the report concludes that globalization brings progress to businesses and improves living standards. It also acknowledges both positive and negative impacts, with a stronger emphasis on the positive contributions to business, socio-cultural development, infrastructure, and technological advancement, as well as increased exports. The report references key academic sources to support its findings.

Running head: International Business 0

International Business 1
International Business
2017
GLOBALIZATION

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Table of Contents
Introduction.................................................................................................................................................2
International Business.................................................................................................................................2
Globalization...............................................................................................................................................3
Effects of Globalization...............................................................................................................................3
Positive effects of Globalization..............................................................................................................3
Negative effects of Globalization............................................................................................................4
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6

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Introduction
This assignment is about Globalization and International Business. The positive and negative
impacts of globalization and the issues involved in future of Globalization which is a process of
economic integration of markets globally in terms of business and finance. It is one of the
emerging trends in business. The act of globalizing to other parts of world comes with various
issues and that are explained here under the assignment.
International Business
International business is used to describe the transactions which are all commercial in nature
includes investments, sales, logistics, government transactions and they take place between two
or more business or nations operating in different countries. The purpose of private companies
behind taking deals and conduct overseas transactions is to earn profit and on the other hand
government undertake such transactions or deals for the purpose of political factor. So it can said
that it is a broad term which refers to the activities (exchanging goods, services and resources)
involving cross border transactions between two or more countries. The companies that are
indulge in International Business or have an worldwide approach to manufacture goods in
various nations can be referred as International Corporations also Multinational Companies.
International Business transactions includes transfer of goods and services, technology,
managerial knowledge and also involves imports and exports. International Business has various
features as follows:
1. The operations they conduct, marketing and production activities are on a huge scale.
2. There is an integration of economies of most of the countries as they use finance, labor,
technology and infrastructure from different countries.
3. It has to face a keen competition in the global market.
4. It gives benefits to the participating countries and a rapid industrial development to those
who are engage in international business activities.
5. International Business also faces few restrictions from other countries in terms of entry or
inflow and outflow of capital.

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Globalization
The term Globalization refers to the penchant of international trade and investments in goods,
services, informational technology and outsourced manufacturing in order to intertwine the
diverse countries together. Globalization lead to increase both the international trading and the
cultural exchange. To conclude it is a process of integrating companies, people and government
of various nations.
When companies open up their trade and investment to multinational corporations and go global
by attracting global capital this result in integration and interconnectedness of the economies of
countries. Globalization is a win win situation for the countries that are producing a particular
product in large quantity as they can export those larger quantities to other countries that are less
efficient in producing that particular product. Looking at various dimensions of globalization and
its impact on global economy and migration of people from lower class status to middle class
(Baylis, Owens, & Smith, 2017).
Effects of Globalization
Through global communications, markets and production Globalization has opened up the gates
of global activity in regard to money making. It has bought many benefits in developed countries
as well as negative impacts with it.
Positive effects of Globalization
It is not possible to describe the extent of positive impacts of globalization, it does include
number of factors which competition, technology, trade, investment, employment, culture and
education (Appadurai, Giddens, & Wallerstein, 2015).
 Foreign investment: It is one of the strong positive aspect of Globalization is the flow of
foreign capital. The amount of foreign investment inflow that flows into countries mainly
developing countries. A lot of companies directly invest in developing countries as these
countries give investors the good proposals and a wide market.
 Competition: Globalization comes with a positive approach towards competition by
improving the quality of products due to global competition. The domestic companies are
compelled to raise the standard of their product in order to compete with the foreign

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investors in this way customers and economy of the country get positive results and
grow.
 Stabilized security: The large part of the economy depends on the Globalization in
financial terms as there is so much violence goes around in the world but globalization
has stopped many conflicts by way of improving financial health of the country. So
Globalization helped in indirect way by improving world security.
 Cultural Management: Countries that are rich in their culture, wealth and education are
the symbols of affluence, a popular cultural force and embrace other countries by
providing western styles in their product and patterns of behavior.
Negative effects of Globalization
As every good thing comes with its own pros and cons here, Globalization do have negative
impacts to the developed countries. These impacts include various factors which suffer
negativity from globalization they are insecure jobs, price fluctuations and currency fluctuation
(Hirst, Thompson, & Bromley, 2015).
 Insecure jobs: People have insecure jobs in developed countries and outsource
manufacturing and white collar jobs it results in lesser job for their people in home
country. Most of the people from the field of accountants, programmers and scientist who
have lost their jobs because they get outsourced cheaper employees from other countries.
 Price Fluctuation: Due to the high rise in competition, developed countries are bound to
decrease their prices for products because other countries are offering the same product in
a cheaper rate. This situation result in price fluctuation to maintain their customer and
this becomes a disadvantage as it reduces the ability to improve the social welfare in their
own country.
 Western Culture: Globalization has led to spread western culture all over the world.
People get influence by the varied culture and practice the same by ignoring their own
culture in the country they are residing in. The dressing styles, language and other habits
they practice which ultimately cause misunderstanding and creates language barrier.

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Conclusion
It is concluded from the study on International Business and Globalization that this trend bring
an emergence in the economy of developing as well as developed countries by integrating the
economies of the world and improving the living standards. The effects of Globalization has both
aspects negative and positive but the weigh is on positive side as it brings progress in business,
socio-cultural, infrastructure, technology advancements and increased number of exports.

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References
Appadurai, A., Giddens, A., & Wallerstein, I. (2015, October). SOCIAL IMPACT OF
GLOBALIZATION ON DEVELOPING COUNTRIES. In National Conference on (p.
72).
Baylis, J., Owens, P., & Smith, S. (Eds.). (2017). The globalization of world politics: An
introduction to international relations. Oxford University Press.
Hirst, P., Thompson, G., & Bromley, S. (2015). Globalization in question. John Wiley & Sons.