“Globalization of the world economy is the integration of economies throughout the world through financial flows, the exchange of technology and information, trade and the movement of people” (IMF, 2006). Globalization brings opportunities with the opening of the borders. There is flow of resources even in the form of capital, technology and labor. Globalization gives opportunity to people to work with people across the globe and acquire new skills and develop individual personality at individual level. At the national level, globalization plays a very important role for both the developing and the developed nations.
Cultural differences plays a huge role in growing and sustaining a business. It helps companies understand different cultures to provide greater services not only to their customers but a greater work environment for their employees. Some aspects include gender, race, nationality, religion and age group. (Seymen 2006) proposed that values and morals each individual hold have influences on behaviours and ideas in different scenarios. According to (Bateman and Snell 2012), there are many advantages towards the organisation in terms of better market connections, improved international competition, multiplicity points of view and a better team performance.
As a result, there are a number of positives associated with globalization. It creates greater opportunities for firms in less industrialized countries to tap into more and larger markets around the world (McCubbrey, 2015). Globalization has interconnected countries, languages, cultures, and people in a manner that was thought never to be possible. Global economic integration has aided tremendously in bringing together the worlds business professionals. Firms tapping into larger markets around the world leads to more access to capital flows, technology, human capital, cheaper imports and larger export markets (McCubbrey, 2015).
This goal of growth in economy can be achieved through international trade, which involves many countries. Despite the obvious gap between developed and developing countries, economic globalization can manage to bring out positive results for both countries. Benefits arising from economic globalization can be shared among different organizations in various nations. When countries get involved in global trade, companies in those respective countries also benefit from such a move. Nations as well as business organizations are able to explore new markets and therefore increase their output leading to economic growth.
The technological progress is an indispensable part for the economy globalization. Because the rapid development of technological in information dissemination and communication, it not only reduce the cost of commodity circulation and create more export opportunities, but also exploit some new products and service in the world markets (Hibbert, 2000). The improvement of technology creates the conditions for the globalization of production, which is allowed to produce many goods in different countries. Therefore, some developing countries can benefit from significant amount of foreign direct investment form develop countries. The foreign company can corporate with local company to develop product and those multinational companies can exploit local markets.
People share their knowledge and integrate, which allows for both human development and the country’s. Globalization is the process by which the world is interconnected through both technology and powerful infrastructure for the purpose of communicating and managing resources. It is therefore seen as one aspect of development that affects the citizens of the world. This global integration has improved the quality of life within the people by improving the universal market and enhancing service standards to customers. It is important to embrace such a method for development as it has clearly has a positive impact on the lives of the people around the globe with minimum disadvantages.
They also help the consumers have more choice in what they would like. With the increased competition, companies have the fight for a share of the market. To stay in the market, business have to stay up to date and change or improve their goods regularly. Sometimes when a business helps make a product better it can lead to lower prices, which make the consumers happy and eager to
Internationalization is the process of producing and designing products or services that satisfy the needs of and are adaptable to consumers in different cultures and languages (Investopedia, n.d.). It can also be defined as boundless operations of companies besides the domestic market (Business Dictionary, n.d.). Because the products are being internationalized, which means they are available in an enormous market, global marketers not only have a chance to utilize the benefits of the international market to increase profits, but also do they need to consider the barriers to avoid costs. Different preferences, languages, cultures or even laws and regulations are good examples of the international market barriers to global marketers. Thus,
The trend toward a single global economy is expanding markets and providing opportunities to managers.today, countries are going to work together as more of a global economy. Globalization is a process of interaction and integration among the people, companies and governments of different nations. Globalization not only has effects on the economy, but also the political systems, environment, culture and law. Globalization can help to expand a company's market. Expanding the market where an organization does business and promotes its products opens up a larger customer base and possibly greater profit margins.
In the time of globalization internationalization is becoming more relevant for company’s strategies. All companies look for the opportunities in expanding their markets. The main reasons for them are: growing further, creating shareholder value, accessing profit pool, tax barriers transposition, demonstration effects, diversification and sustaining long term competitiveness. Globalization created resources and organizations, which build a great supportive platform for companies to go abroad. Internet, WTO, low-cost communication technologies and increased knowledge about different cultures made the way of internationalization much easier and transparent.