University Financial Management Report: Globalization and Strategies

This report on international financial management delves into the multifaceted aspects of globalization. It begins by identifying the key factors that drive globalization within organizations, such as technological advancements, economies of scale, tax system differences, and growth strategies of multinational companies, alongside strategies to prevent failure. The report then examines the critical issues concerning financing and investment decisions within financial management during globalization, including communication and technology, ethical business practices, organizational structure, and leadership challenges. The analysis considers various aspects, including technological changes, market access, remote staffing, and competitive landscapes. The report concludes by highlighting the implications of these factors and challenges within the context of international financial management, offering valuable insights for students studying finance and related fields. The report provides a comprehensive overview of the complexities and opportunities associated with globalization in the financial sector.

Running head: INTERNATIONAL FINANCIAL MANAGEMENT
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Name of the Student
Name of the University
Author Note

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Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................2
Answer to Question 1:................................................................................................................2
Answer to Question 2:................................................................................................................5
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Executive Summary
This report provides a brief knowledge related to globalization. The first part states
the factors that influence the process of globalization in an organization. Some of the factors
that mainly influence globalization are resources and markets, technologies, political factors,
etc. and more are discussed in this report. After that, certain steps are being explained so that
the organizations can prevent failure in globalization. In the second part, all the issues are
listed related to the financing and investment decisions in the financial management. All the
issues are discussed considering the time of planning globalization
Introduction
Globalization can be discussed as the process through which more than one country is
involved to conduct the business activities, and it is usually done across the national
boundaries which resulted in international trade (Beck, 2018). Through this trade, the
countries are more inter-dependent between themselves that the transaction resulted in a
worldwide scale. This trend does help some sector and national economies to grow and it
helps in the trend towards global market, production, and competition.
Answer to Question 1:
 Technological change: There are some sustainable technological change that will help in
reducing the cost of communicating and transmitting information. Many stages help the
technology in certain particular fields which will rise in the import and export of the
goods and services form the country (Eriksen, 2018). There are many countries which are
developed, they export their high technological goods to the underdeveloped countries.

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Some of the good and services which is related to the computer and software are also
exported to the countries where there is a need for that technology
 Economies of Scale: Most economists believed that in some industries there is an
increase in the minimum efficient scale (MES). It has been regarded that in a domestic
market, the opportunity is much less to satisfy the selling needs of these industries if the
minimum efficient scale (MES) is rising. It has been observed by the economists that
some emerging countries have their transactional corporations (Hirst, Thompson &
Bromley, 2015). The movement of the goods and value addition is being determined with
the cost of goods and values of the end-user. It is one of the important factor that is being
considered in globalization.
 Differences in the tax system: Some countries have changed their tax system as the
organizations have the desire to benefit from lowering the labor costs and there are also
favorable production factors that attract them to foreign direct investment (FDI) (Steger,
2017). Though some of the countries have engaged themselves so that they can take
advantage of the foreign investment projects.
 Less Protectionism: There are some old techniques through which there is non-tariff
protection, these are related to the controlling of foreign exchange and import licensing.
Most of the border of the countries have open and there is a fall in the average import
tariff level (Baylis, 2020). To achieve real economic growth there has been a rise in the
non-tariff barriers and in that response there is persistent trade and deficit in the current
account.
 Growth Strategies of Multinational Companies: To increase the revenue and growth,
most of the organizations are trying to reach their level of business at the international
level and for this, they have invested in expanding their business structure internationally.
Particularly for this case of business, most of the brands have proven them to be on that

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international level and they have reached that there successfully (Papastergiadis, 2018).
Therefore, it does help the economy in faster growing and there is also growth in the
number of consumers.
There are certain ways through which the organizations can prevent failures in the
globalization are described below:
 Access to the global market: One of the most common impact that the globalization has
is that most of the organizations has the internet connection. Through this use of the
internet connection, they have access to the buyers and suppliers almost halfway across
the world (Reader, 2017). Thus, the consumers are getting benefitted as they have access
to all the product and services with the smartphone. Through this, the sellers are also
getting benefitted as they are getting more revenue before the globalization.
 Remote Staffing: It can be observed that in most parts of the world there is the
availability of the remote staff. In one part of the world, in some areas, the staff are
working manually because there is no advanced technology and in the other part, it can be
seen that there is digital marketing through which the employees can work more fast,
efficiently and accurately (Claessens & Van, 2015) . Thus, it can happen that there should
be an advancement of technology through which the organizations can cut some costs
with the technological advancement and can raise revenue.
 Competition around the world: The organization needs to improve the quality of the
products as the competition of the products and services is increasing day by day there
will be availability of good quality products and services at a much lesser price. There
will be a risk because of the globalization as there will be more competitors with a much
more variety of the same product and services (Goryakin et al., 2015). Thus, it should be
beneficial for the organizations to deliver good quality products so that they can exhale in
the competition.

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 Business Equalizer: To prevent the failures in the globalization, the organization need to
use the internet as their equalizer. From there the organization can get all the information
like the marketing tools, information about the other information and the other established
organizations (Rahman & Miah, 2017). If they can successfully implement all these
factors in the organizations and change their strategy by following theses information
they have get, they will more opportunity and market presence in their economy.
Answer to Question 2:
Through the help of globalization, the whole world is becoming well connected. Most
of the countries that are still developing is participating in the global stage and they are trying
to compete with their neighbor countries and also other countries around the world. Thus,
some organizations need to plan their process of globalization at the time when they are
operating globally (Compton, 2018). All the issues that the organization faces are explained
here including the financial management issues which include investment and financing
decisions.
Communication and Technology: One of the biggest challenges that most of the
organization faces is that across the boarders all the employees that are operating are
having a centralized communication system. Thus, it makes the organizations face more
competition and have an effect on the department and their particular branches (Swain &
Jägerskog, 2016). Another challenge that the organizations face is that organizations run
different technological systems, it is a bit challenging at times to synchronize most of the
systems and enhance the communication within the organization.
Environmental Conservation: The whole world is having an interest in keeping the
environment conserving and thus reversing the effects of globalization. It is one of the
important matter that the organizations consider no matter in which of the world the

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organization belongs. There are different rules through which the organizations through
which all these issues are being taken care of through energy consumption, recycling and
making use of the green packing (Niami et al., 2019). Through all these incorporations it
will help in the business operations and it will not affect the environment.
Ethical business practices: It is considered one of the biggest challenges that the
multinational organizations face is through ethical business practices in certain areas
which includes the labor, safety of the product and regulatory compliance. These factors
do affect the success and failures of the other global player. To avoid all these ethical
practices there are implementation of the laws that will help in avoiding the corruption
with the business people (Lambregts, Beerepoot & Kloosterman, 2015). Through this
implementation, the organization s can maintain high ethical standards that will help in
operating in the other nations all it will be also beneficial for the multinational
organizations.
Organizational Structure: There are various problems which the organizations suffer
from is that there is less ability as the organizations try to operate in new regions. It does
faces problem in creating the value chain and in the corporate structure. In the case of the
international expansion, in certain cases there is a huge requirement of the capital
investment which will help in the development of the Strategic Business Unit (SBU), this
will help in the managing of the accounts and operations (Awan, 2016). Through this
way, it will help in creating values in the organization even though it will have a fixed
organizational investment as it is required in taking the initiative for the global
corporations.
Legal and Regulatory Structure: There is a need for certain laws and regulations
through which the organizations used to operate and are governed by. Though there is a
need for a law expertise so that they help in understanding the law and can compile with

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all the applicable regulations that the organizations need for the operations. It is important
for the organization at the time of entering the new market to compile all the rules and
regulations that are needed (Lilley, 2016). It will help the organizations to take the
strategic and operational decisions at the time of expanding globally so they can ensure
profitability.
Public Relations: Two of the most critical components that can be considered are the
public image and branding. It is a bit challenging for the organizations to have a good
public relation in a new geographic region and it will need a capital expenditure to create
that momentum.
Leadership: At times, it is difficult for the organization to have a leadership role with
appropriate knowledge and certain skills that will help at the time of globalization. The
person should possess a set of strategies that will help in the organizational structure. In
developing an effective global strategy, the person has to have intercultural competence
so that he can able to manage globalization.
Technologies: Due to technological development, there will be a change in the business
structure and the type of operations that is possibly happening. Some organizations will
have some effect as there are certain changes in the technological development in some
foreign countries. The changes that face is in training the workers with new equipment,
because of the poor transportation costs there will be an increase in the production costs
and distribution costs; there is poor communication facilities and infrastructure; there will
be challenges in the technological literacy.
Infrastructure: To operate in society, there is a need for a basic organizational structure
that will help in the functioning in the economy. Certain interconnected elements will
help in the framework and help in the structure of the development. A stable structure
includes roads, water supply, bridges, telecommunication, and electric grids. The

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organizational structure comprises a stable government, banking and financial system,
judicial system and some social services that are basic like hospitals. By looking at the
infrastructure of the economy, it will help in determining the ease of doing business in the
nation (Turner & Holton, 2015). If it is observed that there is poor infrastructure, then the
organization will face some difficulty in transportation. Thus, there will be additional
costs and increased the price of the products.
Conclusion
From the above discussion, it can be concluded that in the 21st century, there is an
increase in the trend of globalization in the international structure of industries. The
information technology has been increased in many ways through which it helps in evolving
the new global modalities. There are also some risk factors that affect at the time of
globalization is being discussed in the report. All the factors that influence in the
globalization of the organizations and the steps that should be considered for preventing the
globalization like using the equalizer and studying the market competition all are mentioned
here. At the time of globalization that affects the organization in taking the financial
decisions are explained briefly.

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References
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Economy. Global Journal of Management and Social Sciences, 2(4), 1-21.
Baylis, J. (2020). The globalization of world politics: An introduction to international
relations. Oxford University Press.
Beck, U. (2018). What is globalization?. John Wiley & Sons.
Claessens, S., & Van Horen, N. (2015). The impact of the global financial crisis on banking
globalization. IMF Economic Review, 63(4), 868-918.
Compton, R. W. (2018). Transforming East Asian Domestic and International Politics: The
Impact of Economy and Globalization: The Impact of Economy and Globalization.
Routledge.
Eriksen, T. H. (2018). Globalization. In Handbook of Political Anthropology. Edward Elgar
Publishing.
Goryakin, Y., Lobstein, T., James, W. P. T., & Suhrcke, M. (2015). The impact of economic,
political and social globalization on overweight and obesity in the 56 low and middle
income countries. Social Science & Medicine, 133, 67-76.
Hirst, P., Thompson, G., & Bromley, S. (2015). Globalization in question. John Wiley &
Sons.
Lambregts, B., Beerepoot, N., & Kloosterman, R. C. (Eds.). (2015). The Local Impact of
Globalization in South and Southeast Asia: Offshore business processes in services
industries. Routledge.

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Lilley, I. (2016). Globalization thinking in Australasia and Oceania. The Routledge
Handbook of Archaeology and Globalization, 279.
Niami, M., Sulistiyono, A., Pujiono, P., & Harahap, B. (2019, October). Impact of the
Indonesia Australia Free Trade Agreement. In 3rd International Conference on
Globalization of Law and Local Wisdom (ICGLOW 2019). Atlantis Press..
Papastergiadis, N. (2018). The turbulence of migration: Globalization, deterritorialization
and hybridity. John Wiley & Sons.
Rahman, S. M., & Miah, M. D. (2017). The impact of sources of energy production on
globalization: Evidence from panel data analysis. Renewable and Sustainable Energy
Reviews, 74, 110-115.
Reader, J. (2017). Reconstructing practical theology: The impact of globalization. Routledge.
Steger, M. B. (2017). Globalization: A very short introduction (Vol. 86). Oxford University
Press.
Swain, A., & Jägerskog, A. (2016). Emerging security threats in the Middle East: the impact
of climate change and globalization. Rowman & Littlefield.
Turner, B. S., & Holton, R. J. (Eds.). (2015). The Routledge international handbook of
globalization studies. Routledge.