b) Dynamic Work Environment: Globalization has bought a revolution in world economy. Globalization has increased the rates of mergers and acquisition. The increase in competition between the multinational corporations across the globe has increased drastically. Work environment has changed a lot post globalization, c) Information Technology: Improvement in information technology is due to the impact of globalization. The one which has the best potential to change the shape of international management is the advancement of technology.
Globalization has affected every aspect of the business community in one way or another. Globalization in a simple sense is a business’s movement from one country to another. This is done for a number of reasons; amount of readily available resources, labor market, increased number of customers, and to ultimately become more profitable. There is a decisive advantage for a business to move overseas, but there are a number of drawbacks globalization creates on the local economy. When businesses become an international entity the home country experiences increased unemployment rates, the human resource department now has to manage across borders, prices of goods fluctuate, and forcing wages to decrease for unskilled workers and increase for skilled ones.
• Those businesses that are not competitive in the global village are pushed out of business or forced to fold as globalization favors firms that are strategic and can maintain their competitive advantage and exploit their strengths and opportunities. • There has been an opening of worldwide production markets and broader access to a range of a foreign products for both consumers and companies EFFECTS OF GLOBALIZATION • There has been an increase of information flows between geographically remote locations. • Globalization leads to increased competition and this competition can be related to products, service, cost and price. Technological advances have quickened lag and response times throughout all economic
Furthermore, with speedily increasing globalization, international business has become a popular trend and has drawn the attention of business executives, related officials and academics. International business is different from the local or domestic business. As far as the international level, the globalization of the world economy and the differences between countries present both opportunities and challenges to the international businesses. The Forces behind the globalization 1. Increase in and Expansion of Technology 2.
Globalization is the tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of different markets. (“Globalization,”) It also has had the effect of not only increasing the international trade but the cultural exchange. However, when it comes to globalization both its advantages and disadvantages have been greatly scrutinized and heavily debated in the past few years. People who believe in globalization say that it helps the developing nations “catch up” to the much faster industrialized nations. This happens through increased employment and a great amount of technical advances.
What is the impact of such significant downsizing to the Information Technology field in general? For one thing, globalization has cast an entirely new light upon the way that Information Technology companies operate amidst a growing atmosphere of global competition. Every opportunity to cut costs and increase revenue brings a company that much closer to overpowering its industry rival. "There are good reasons…to be skeptical about whether easing the way money flits around the world has brought more good than harm" (Moberg 18). While the globalization of the Information Technology industry greatly depends upon a firm's competitive position in a particular country being significantly impacted by its position in other countries, it can be readily understood that global industry is not just a collection of domestic industries but rather a group of linked industries in which rivals compete against one another upon a worldwide basis.
Globilization and the World Economy Globalisation in general means the effort of a company moving into other territories (outside the national boarders of a country) to sell its goods and services to increase profits as a result of expansion. Globalisation incorporates both opportunities and risks which change the way businesses are managed worldwide. It brings about a well-diversified portfolio for such a company. This is because the company is guarding itself from huge losses in case of economic uncertainty. Significant gain in one company can cover for the losses made in another company.
Globalization as generally understood involves the increasing interaction of the world's peoples through their national economic systems. Of necessity, these economic systems are reasonably compatible and, in at least some important respects, market oriented. During the past half-century, barriers to trade and to financial flows have generally come down, resulting in a significant broadening of world markets. Expanding markets, in turn, have enhanced competition and nurtured what Joseph Schumpeter called "creative destruction," the continuous scrapping of old technologies to make way for the new. Standards of living rise because the depreciation and other cash flows of industries employing older, increasingly obsolescent, technologies are marshaled, along with new savings, to finance the production of capital assets that almost always embody cutting-edge technologies.
The revolutionary opportunities and situations due to globalization raised a new topic of: global Security”. Everyone in the global politics is now concerned about the global security in the context of globalization. I will discuss issue of global security and possibility of its achievement in detail in the context of globalization and I will also highlight global security and the globalization link in the eyes of liberals and realists the two dominating school of thoughts throughout the world. Globalization has minimized the distances and increased the interdependence of states due to advanced technology and communication means. Nowadays the events are more localized and any event happened in one part of the world has impacts on the whole world due to globalization.
Chances are that every single item you see has been impacted by globalization. Whether the item has foreign parts or is produced entirely outside of your country, it has been directly impacted upon by globalization. Globalization, on the whole, is a good thing. Globalization greatly empowers consumers, enables unprecedented market knowledge, and has pioneered breakthroughs in logistics. However, globalization can act as a detriment as well, to both underdeveloped and developed nations alike.