Nobody downloaded yet

Benefits and pitfalls of globalization for business - Essay Example

Comments (1) Cite this document
Summary
Businesses have realized the importance of globalization of operations for growth and profitability and have been aggressively strategizing operations for competing on global scale. Democratic governmental institutions and adherence to the rule of international laws are considered essential for successful globalization of operations. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.7% of users find it useful
Benefits and pitfalls of globalization for business
Read TextPreview

Extract of sample "Benefits and pitfalls of globalization for business"

Download file to see previous pages Anthony Mcgrew defined globalization as a “process of deterritorialization – as social, political and economic activities are increasingly stretched across the globe…” (n.d., “Ch.1: Globalization and global politics”). This comprehensive view gives a glimpse of the trend towards borderless economic societies of the future from the current nation-states based on political considerations. Given the vast differences among the different countries and their peoples in respect of socio-political and economic conditions, this trend gives rise to both promises and pitfalls for the global businesses.
Globalization benefits can be expected from cross-fertilization of ideas, access to best available talent/resources, creativity and technological growth arising out of global competition, creation of networks of alliances, etc. while pitfalls include uncertainty of political conditions and economic policies, impact on local industry and employment, fear of dominance etc. (Ali, 2006, pp.78-81, 141-143). Cross-fertilization of ideas occurs when firms come across different ways of solving a problem or completing tasks, which are more cost effective or in identifying newer opportunities and demands. For example, housing shortage in poor countries can give rise to generation of fresh demand and exploitation of newer/locally available materials and methods of construction. Coming to talent, it is noted that many global firms employ foreign nationals at all levels of organizations recognizing merit. Again, global firms like Procter & Gamble compete at global level through heavy investment in R&D and this in turn creates new technologies and products. Networking is another beneficial aspect of globalization by which global firms and local suppliers join hands to create value for customers. Global firms face uncertainty when political changes occur which may impact international agreements apart from operations. Stability of government policies on investments, employment, profit repatriation etc. is essential for a business to thrive. Competitive politics give rise to issues like job losses, exploitation, dominance, interference etc. Further, events in one country or a region will quickly impact business prospects of global firms in many other countries. For example, the recent downturn in the US economy is impacting firms across Europe and Asia. Given the above analysis, governments, businesses and organizations like WTO are working towards co-operation among nations by promoting democratic governments that respect international laws and strive for the economic prosperity of their citizens. This means that global businesses take on the responsibility of actively promoting local industry, skills and employment to create a win-win situation. Q.2: Address to shareholders Dear Shareholders, In the competitive world of business, we have to constantly strategize our operations and our decision to invest in Franistan eight years ago was based on sound economic and business principles. That the decision was right is seen in the nearly 19% reduction in cost of manufacture of our products and the more than corresponding increase in the net profits over the last five years. As per our corporate policy, your ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Benefits and pitfalls of globalization for business Essay”, n.d.)
Retrieved de https://studentshare.org/business/1390419-benefits-and-pitfalls-of-globalization-for-business
(Benefits and Pitfalls of Globalization for Business Essay)
https://studentshare.org/business/1390419-benefits-and-pitfalls-of-globalization-for-business.
“Benefits and Pitfalls of Globalization for Business Essay”, n.d. https://studentshare.org/business/1390419-benefits-and-pitfalls-of-globalization-for-business.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
em
emmerichelyse added comment 5 months ago
Student rated this paper as
Precise work done on the %topic%. I think it is the best sample I have seen so far.

CHECK THESE SAMPLES OF Benefits and pitfalls of globalization for business

The Pitfalls of Conformity

...?The Pitfalls of Conformity Population explosion has made the notion of social order a truly complicated and difficult issue. More people mean more competition in the race towards the top of the food chain, so to speak, or even be simply part of that chain. This further implies greater potential for chaos and anarchy. Historically, society attempts to solve this problem by using the biggest tool it has in its arsenal: collective pressure. As progress and civilization advance, peace and order become a must. To achieve this condition, society is forced to define and impose certain boundaries within which individual behavior is controlled and limited. The struggle for self-survival and the quest for more progress often compromise... brutal...
6 Pages(1500 words)Essay

How globalization benefits America's economy

...? How Globalization Benefits America's Economy Summary Argument The believes that economic challenges such as poverty experienced in many countries around the world are something that can be turned around by instituting good policies. The author applauses the role globalization has played in economic development and strongly disagreed with the fact that globalization has enhanced inequality. He asserts that it is through globalization that most poor countries have experienced rapid economic growth rate and per capita income (Wolf, 2004). The recent advancement in Asian economy is really transforming the world and the notion that...
5 Pages(1250 words)Essay

Ethical Pitfalls in Negotiation

...Ethical pitfalls in Negotiation Ethics is system of moral values and principles that is the standards of rules that govern the conduct of the members of a profession and accepted ethics of the right and wrong. The word Ethics establishes the means of doing a fair, right and honest work. Ethics plays a very significant role in negotiation, which is an interpersonal process of decision making that is vital whenever one cannot achieve their goals independently. In simple words, values and ethics stand to be very important in the present business environment. However, there are certain Ethical pitfalls in negotiation. The biggest ethical pitfall in negotiation is bluffing...
4 Pages(1000 words)Essay

Benefits of Globalization

...and organizations While answering the first question I learnt what basically is globalization. Who benefits from it and who doesn't. How can organizations benefit from globalization. The changes that occur in an organization due to globalization. Changes that can or will occur in international market in the next five years due to globalization and how will these changes affect the ways and strategies of international marketing. While answering the second question I got to learn what are ethical issues. What types of ethical issues are related to globalization. What type of ethical issues organization face while doing...
4 Pages(1000 words)Essay

International Business (Globalization)

...Running Head: INTERNATIONAL BUSINESS International Business s International Business International businesses areusually known as multinational corporations. An additional, important feature of globalization is the nature as well as supremacy of multinational corporations. Companies like these are at the present responsible for almost 33 per cent of whole world’s output, as well as almost 66 per cent of world trade Significantly, somewhat close to a quarter of world trade takes place inside multinational corporations (op. cit). This final point is well explained by means of operations of manufacturers who make cars they normally get their...
7 Pages(1750 words)Essay

Group Communication Pitfalls

... the best ideas in a writing project. Brainstorming is a technique in problem-solving where members spontaneously share solutions (John, 2005). References John, O. (2005). Group Communication Pitfalls: Overcoming Barriers to an Effective Group Experience. New York: Sage Publications, Inc. Marion, N. (2010). Spirals Series Circle: Developing Language and Communication Skills through Effective Small Group Work. Washington, DC: Routledge... XCOM WK6 DISCUSSION QUESTIONS Question To begin with, group members should understand each other. This is very important since it helps the members determine their strengths and weakness. This helps in division of work according to the strengths of members. Weaknesses are dealt with easily through group...
1 Pages(250 words)Essay

Pitfalls

...Pitfalls in the Uses of Statistics to Solve Problems in Business I.D. of the Pitfalls in the Uses of Statistics to Solve Problems in Business If proper statistical tools are not chosen that are most suitable for the specific purpose of business under investigation, erroneous conclusions may be reached at. In today’s management sciences, qualitative and quantitative analyses are used in conjunction. Even if there are a lot many qualitative concepts present in relation to a particular business problem, statistical interpretations are necessary so that business stakeholders can be informed and convinced. 1. Making...
1 Pages(250 words)Essay

Benefits,Limitations, Pitfalls and Challenges

...Benefits, Limitations, Pitfalls and Challenges of Strategic Planning Benefits, Limitations, Pitfalls and Challenges of Strategic Planning Benefits One benefit of strategic planning is creating a chance for the focus to be placed on the crucial things in the organization. In this case, resources such as time, talent and money are allocated appropriately to the relevant activities in a way that benefits the organization. On the other hand, strategic planning creates awareness concerning changes in the environment by facilitating required change (Bryson, 2011). Moreover, it offers a platform for analyzing internal organization culture through an evaluation of its influence on the performance. Furthermore, through strategic planning... , the...
1 Pages(250 words)Essay

Tax inversions, benefits and pitfalls

...Tax inversions, benefits and pitfalls Tax inversion is an American term used to refer to the relocation of headquarters by corporations to nations where taxes are lower. The relocation takes place, but the corporations retain the operation materials in the original nations where taxes are high. This term is largely used in relation to corporations in the United States. Tax inversion is a recent phenomenon. Even though it is hard to be definitive, its prevalence and practice came in the 1960s when many corporations sought for tax havens such as Bermuda. Recently, due to changes in the U.S law, publicity has aimed for corporate inversions where companies merge with those in lower-tax foreign nations. This...
2 Pages(500 words)Term Paper

Benefits in Business

...ESSAY, BUSINESS SECTION A1 The benefits of providing free data (such as those of Land Registry site) often outweigh the costs by some significant margin. However, it is not always easy to recognize the benefits than the costs. Benefits include transparency, corporate accountability, and improvement of decision-making, better public services, economic and social growth. Benefits may amass in a number of ways and these include efficiency gains, costs savings and better opportunities of developing value by doing things in new ways. These things are not easy to quantify because they always develop with time and can only be seen in the forthcoming days. There are a number of ways of measuring the public sector information (PSI... ) and...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Benefits and pitfalls of globalization for business for FREE!

Contact Us