Globalization and International Business in 2020 What is the future of our lives will look like? Specifically, what will business and business management will be like in ten years from now? Also, when it comes to the concept –The word is Flat- how this is effecting globalization and international business. When thinking about the future, international business is an important key point to think of. There have been various changes related to international business. From past to present even to the future, international business and its management will keep changing and there will be many different factors affecting it such as technology and other factors. Looking at businesses in the past and how they were being international is totally …show more content…
Also, managers need to look at the countries that they want to expand their business to. Some managers may want to expand their business to specific countries while other managers may not find it beneficial for their business to be in these countries especially because of the that in each country there is a different type of management system. For instance the management system in China will be totally different from the management system in India or in Brazil. As a result of the importance of international management, many different researches have been made over this topic. About 14 percent of the total publications of AMJ Company were made about international business management (Kirkman et al 378). This implies that international management is an important topic to talk about especially after the idea of …show more content…
This point by itself will change the way companies use outsourcing. For example, “Over the past decade, China has routinely experienced 8 percent to 9 percent annualized growth and India has followed closely with 7 percent annualized growth” (The Impact of Globalization on Business). This explains how companies are more willing to use work force from China, India and other develop part of the world because to their cheaper workforce. However, after having enough workforces from these places, companies will be looking for cheaper workforce which might be
One of the hottest trends today for big corporations is outsourcing and offshoring. Outsourcing simply means a company based in one nation will hire from other nations in order to more efficient accomplish its goals. It makes sense on the part of the corporation, why pay a programmer in the US $80,000 a year when they can pay a programmer in India less than 1/10th of that salary, and make him a very happy man. This because even when he is earning 1/10th of the US salary, he is still earning more money than he ever hoped to get in that industry in India. It seems like a win-win situation1, but there is still a loser: The growing unemployed population of the US. As more jobs go overseas, more US citizens are finding themselves becoming obsolete.
Demographic: It is very likely that a decline in the ratio of the working population in wealthier countries will take place in the near future. And in order for developed countries to continue their functionality and stay competitive, they will have to seek employees from the outside. This shortage of skilled labor in wealthier countries can be covered by external resources located abroad. India and other developing countries have a younger workforce with the levels of skills and education required to fill the likely scarcity of high skilled employees in the developed world. India produces over 2 million graduates each year for example; this gives companies sufficient options to select from, when they recruit workers for their offshore operations.
Hiring workers in foreign countries can allow your company to work around the clock, because workers are in different time zones. Also workers in other countries maybe more proficient with technical and service skills and improve overall performance. Outsourcing can eliminate investments in capital, such as computer equipment and office space. The money saved can be used to invest in day-to-day operations.
Saturation of domestic markets and the need by firms to diversify their markets have provided firms with the need to go international (MA sum, & Fernandez, 2008). Internationalization can be defined as the act by companies to explore international markets, although there has not been a clear definition of internationalization (Andersen 1997, p.28). Internationalization is a huge decision by firms and the wrong strategy can lead to ultimate fall of the organization. Internationalization allows firms and companies to own or control businesses and activities in several countries; a process that affects the whole organization making it more international (Dunning, 1993) and by going international, companies can gain competitive
The most important issue of all issues is finding a competent core workforce. When a company has built its reputation on the quality of its products or even the quality of its workers; when these key components are changed it could leave the company with a bad reputation. When the workforce is not competent will companies got the extra miles to properly train these outsourced workers, will their lack of investment in these issue ruin them overall as a company because they are no longer producing the quality that their consumer base has come to know and
It has become evident that countries must make these changes in order to be able to compete in the worldwide economy. In addition to the technological improvements, occupational changes are imperative to the contribution of a flat world. The term outsourcing involves the sharing of management control and or decision making to an outside entity. It is most often heard when a company outsources its workforce. It usually occurs when management decides they can hire cheaper and more cost efficient labor often in another part of the world. This is why much of the articles of clothing we wear, say “made in China” or “made in Taiwan.” A company based in the United States can pay workers oversees a much lower rate than they can in America. This doesn’t sound like much, but outsourcing in an age of an ever improving communication system is really bringing the world closer together.
The tag on my shirt reads “Made in Taiwan,” my pants were made in Venezuela, and my cell phone was manufactured in China. Someone may ask, “How am I driving a car in the United States that was put together in Germany?” The answer is globalization. Products are made and sold across the globe due to globalization. Through modern technology advances, globalization allows countries thousands of miles away from each other to be right next-door, hypothetically. Organizations, people, and companies from all around the world can collaborate ideas and work together with. This is not a new concept. People have been traveling across mass distances to trade products for centuries. However, with the developments that globalization offer, people can exchange goods and insights faster and more efficiently than ever before possible, with minimum effort or financial commitment. Modern communication, such as cell phones, and new technology, like the Internet, are a few of the factors that are advancing globalization at a rapid pace. Globalization is growing quickly and benefitting our world in many ways, both big and small.
The plus points of having your business involved in the international level business are not just limited to an increased exposure leading to tremendous traffic flow and continuous sources of money for filling up your pockets. In fact, letting your business grow in a bigger market houses a wide range of benefits that you might be unaware of. That’s why we have compiled this article to help you in getting an idea of importance of international business.
Globalization, the acceleration and strengthening of worldwide interactions among people, companies and governments, has taken a huge toll on the world, both culturally and economically. It’s generating a fast-paced, increasingly tied world and also praising individualism. It has been a massive subject of matter amongst scientists, politicians, government bureaucrats and the normal, average human population. Globalization promoted the independence of nations and people, relying on organizations such as the World Bank and also regional organizations such as the BRICs that encourage “a world free of poverty” (World Bank). Despite the fact that critics can argue that globalization is an overall positive trend, globalization has had a rather negative cultural and economic effect such as the gigantic wealth gaps and the widespread of American culture, “Americanization”; globalization had good intentions but bad results.
One effect of companies’ use of offshore outsourcing is that it fuels business competition, and business competition is good. It is important because it gives one company an edge over another. According to Winston Pepito nowadays if companies do not use outsourcing they will lose ground against the competition (Pepito). If we look at figure one on the previous page we can see this by examining an illustrator’s depiction of offshore outsourcing. This clever illustration suggests that if a company does not use offshore outsourcing that company may fail. This is noted by the personified factory holding a sign that says, “China or bust.” Winston Pepito writes that some say outsourcing helps companies stay in business while others say it is a “disease” ruining the lives of American workers (Pepito). However, it is more important that businesses stay competitive than losing a few low-end jobs in America. Cyber Futuristics claims that competition forces a business to improve the quality of their products or services as well as provide them for cheaper prices (Cyber Futuristics). The fact...
“You 're right, we do have a lot in common. The same Earth, the same air, the same sky... Maybe if we started lookin ' at what 's the same, instead o ' always lookin ' at what 's different, well, who knows?” Meowth says this in Pokémon: The First Movie as he realizes that he and his clone do not have to fight each other. While the quote signifies peace and harmony in the movie, it can be applied to globalization in the real world. This phenomenon is making the world more interconnected, and it brings everyone in it closer to one another. At the same time, it creates many changes that in turn affect my way of living in the coming years. Due to an increasingly globalized culture, my future lifestyle will improve because of more technological
Globalization describes the increased movement of people’s knowledge, ideas, and money across national borders that have led to increased interconnectedness between the world 's populations, economically, politically, socially and culturally. Sometimes globalization is thought of as the global marketplace, and this process has social and political implications as well. Globalization is thought of throughout the world as making societies educated and wealthier through trade to people around the world. Some people see globalization as a factor in the exploitation of the poor and as a threat to traditional cultures by the wealthy, as modernization changes societies. Location, rather than resources, has pushed places to the center
Urbanization in the 20th century revolves around globalization. This is the link to developments of the 20th century with historical urbanization. The development of urban space and city dwellers depends on the different ways that Americans regulate their cities. Globalization refers to the process of integrating of countries across the world. The process of globalization is accelerated by the dynamic nature of technology, change in price, and liberalization of trade makes it easier for countries to merge their trade rules, minimizing competition. The countries of transition show integration of the global economy as characterized in specific regions. The concept of globalization is complex and controversial happening over time. The growth of globalization over the year’s takes time as numerous features requires the global economic integration. Globalization ensures internalization of the products produced by different countries. The use of globalization in business aids in securing changes in production structure. In the end, the business entities make links with the deepening of capital in international flows. The process of globalization is a process that is likely to be reversed (Datel 125).
Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them.
Globalization affects this world and the people of this world in many ways. It is the idea of making the entire world like a single country.