Globalization on business management is an interconnection of international markets and managing businesses in a global industry. These produces greater opportunities for companies to open up additional markets, allowing customer harmonization as a result of the increase in shared cultural values, provision of a superior lower operating costs in other countries , access to new raw materials, resources, and investment opportunities.
Globalisation means that businesses are now much freer to choose where they operate from, and can move to cheaper and efficient locations. Although multiple locations and distributed operations may lead to reductions in cost, it can also lead to increasing complexity in management of the interactions between different cultures. With larger number of industries and resources available, the opportunities for people grow exponentially too, thus increasing complexity and more and more people are exposed to the lucrative benefits of moving abroad. This increases immigration rates as well as difficulties in managing people across different cultures and believes. Interestingly, globalisation comes up with consumer expectations, as consumers all over the world get better informed, they develop demanding expectations. Consumer anticipations are becoming diverse, what may be considered quality/cheap in one market may not necessarily be so in others and hence there is a need to manage expectations. The rise in knowledge levels of countries as newer cultures and technologies are opened lead to issues of fair trade as people start questioning their rights as employees, they get knowledge on how the business they work in operate in other areas and would want the same or similar treatment which may not always be ea...
... middle of paper ...
...d West Organizations by Jihyun Kim Bloomsburg University of Pennsylvania, USA, Renée A. Meyers, University of Wisconsin-Milwaukee - USA
2. International Journal of Business and Management; Vol. 8, No. 13; 2013, ISSN 1833-3850 E-ISSN 1833-8119 Published by Canadian Center of Science and Education
3. ETHICAL ISSUES IN INTERNATIONAL BUSINESS - The Annals of The "Ştefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration Vol. 10, Special Number, 2010
4. http://www.tutor2u.net/business/external/globalisation_effects.htm
5. The Impact of Globalization on Business May 22, 2006, By Mike Myatt, Chief Strategy Officer, N2growth
6. Intercultural: Cultural ethical dilemmas in business- from bribes paying to political affairs by Irina Budrina
7. http://business.laws.com/business-ethics/international-business-ethics#sthash.OhPEWFoa.dpuf
Ferrell, O.C. "Business Ethics." Ethical Decision Making and Cases. Michele Rhoades, Joanne Dauksewicz. Mason: South-Western Cengage Learning, 2011. Print.
Globalization can not only affect a company opening an office in another country but it can affect a small local business as well. As the internet brings the world closer together it becomes far more likely that a business that opened with no intention of selling internationally will have customers form different parts of the world asking for their product. For instance a steel company located in Pennsylvania may suddenly find orders coming in from South American factories. How the steel plant chooses to handle this new international customer could mean ...
The Millennium report advocated that the greatest challenge we face today is to ensure that globalization becomes a positive force for the entire world's people, instead of leaving billions of them behind in foulness. Inclusive globalization must be built on the great enabling force of the market, but market forces alone will not achieve it. It requires a broader effort to create a shared future, based upon our common humanity in all its diversity. Today the most significant changes in the world economy over the past decades are the upsurge in globalization of markets and industries. There are numerous forces that have greatly contributed to the rise of globalization, factors such as reductions in multilateral and regional trade barriers, mergers and acquisition that enhance assess to new markets and competition. Globalization can be claimed to have major and crucial positive implication on the businesses today.
In this paper, I will attempt to discuss what should be the norm for international business and optimal resolution for ethical dilemmas that all multinational organizations should adhere to as part of its normal conduct of business. Furthermore, I will discuss how to resolve the dilemma around fair wages paid to its employees, keeping the organization sensitive to various international cultures it operates in and to not let any local corruption and bribery shadow the good efforts and image of the organization.
Economic activity always has an ethical aspect. No matter what type of business is taking place there is always an aspect of ethics. A business transaction occurs when people exchange a product or service for money. If the exchange is fair then both parties benefit and therefore both parties’ interests are served. Therefore this interaction between parti...
When businesses deal globally to expand their markets they may face dilemmas which must be dealt with to avoid conflict. The types of issues many companies encounter deal with legal, ethical and cultural encounters. From our example we see the legal issues in settling disputes for international transactions can become very complex. Ethical issues concerning the workers, the culture, and the environment are all contributing factors international companies must be ready to address. CadMex Pharma and Gentura must establish a business agreement that protects both of the company’s interest from issues concerning the social, legal, and ethical norms of the host business.
Zaharia, I. 2010. Business Ethics in Third World Countries. A Romanian Representative Case: Roşia Montană. BRAND. Broad Research in Accounting, Negotiation, and Distribution, 1 (1), p. 1-7 Available from: doi: ISSN 2067-8177 [Accessed: 8 Nov 2013].
Globalization refers to the absence of barriers that every country had. Yes, it has helped to demolish the walls that separated us .Globalization, which is the process of growing interdependence among every country in this planet, can be seen as a sign of hopeful and better future by some, but for others it represents a huge disaster for the whole world. That’s why we are going to see the negative effect that globalization has on culture then focus on the ethical disadvantage it brought, to finally talk about the damage it did to skilled workers.
As a conclusion international business best described as a Globalization. A globalizing business sector advertises viability through rivalry and the division of the work it permits individuals and economies to keep tabs on what they specialize in. It also allows people to go globally. Globalization has stretched the assets, items, administrations and markets accessible to individuals. The increasing set of reliant connections around individuals from distinctive parts of a world that happens to be separated into countries
“Because it is widely seen as inevitable and nearly inalterable, globalisation is often presented as a force that must be embraced without reserve, but doing so benefits some people while putting others at grave risk.” (Timmnos Roberts J., Bellone Hite A., 2007). Globalisation has been a widely discussed topic and a frequently used term to describe the worldwide movement toward economic, financial, trade and communications integration(ref). It has been described and defined by many and it is difficult to provide only one definition of the term as it covers so many aspects of our lives and everything around us. Many argue over its advantages and disadvantages with a goal to determine whether it brings more harm or good to the world, but one
Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.
Globalization is huge part of the success of some the biggest firms today, from Apple, General Electric, to Google. It allows a business to develop international. It allows reduced costs by maximizing production known product lines, allowing to expand into different markets gives a more competitive edge and expanding to new technology helps to increase to a bigger company, having more political edge within trade agreements.
The interrelation and the integration of people, companies, governments and nations can be described as globalization. Globalization was produced due to international trade and investments with the help of technology. In today’s world, globalization is very essential. The advancements and technology help the process needed it for globalization. Many countries and organizations similarly are affected by this phenomenon, on the other hand, smaller countries have benefit from larger contributors in the world’s market.
Stonehouse, G., Campbell, D., Hamill, J. & Purdie, T. (2004). Global and Transnational Business (2nd ed.). Chichester: John Wiley & Sons.
Larsson, Thomas. The Race to the Top: The Real Story of Globalization. Cato Institute, 2001.