Business In Global Markets - Term Paper Example

Business in Global Markets Globalization is a market approach that has been in use in the world since integration of world markets. Many countries and businesses have embraced globalization since it is one of the attributes that has been enhancing businesses. Many people and businesses have been trying to perfect globalization by bringing new approaches and enhancing the strong points in establishing better markets. Some of these approaches have been successful as they have been harvesting the positivity in globalization (Hopper 21). However, some other aspects that affect globalization are not easily controlled. It takes a lot of time and resources to change certain aspects that affect globalization. One of these aspects that have been affecting globalization is culture. The culture of a place is not easily changed as most of the societies in these areas savor their culture. In most cases, the behaviors of a society are connected to their culture. Therefore, it is not an easy task to separate behavior of people from their culture as the two are cemented together. Primary Components of Culture. Culture comprises of various primary and secondary components. Primary components are vital in a society as they have a direct impact on the society. Most of the primary components of culture are given priority as they have an impact on the whole community and society. The first primary component of culture is language. The language in a cultural society is the way the people in the society communicate to each other. Some of the people use verbal way of talking while others use signs. It is explained that language is a way of communicating to other members of the society and an important aspect in interaction. Therefore, globalization and spread of business will depend on the acceptance in communication with the society through language. The second primary aspect is the beliefs of the society (Meyer 17). Some societies have strong beliefs about various products that are sold in the market. Therefore, this is likely to affect the issue of globalization and spread of businesses in such an area. For example some areas have beliefs that people are strictly vegetarians. In such places, consumption of animal meat is prohibited. Therefore, a business that specializes in meat production is not likely to sprout in such an area. The third primary element of culture is the norms in the culture. Norms are stipulated in a community to help in orderliness in the society and culture. The culture upholds the need for orderliness, discipline and stability in the society. Without this, the society will not be peaceful ads many people will not be in peace. Similarly, the norms of a culture explain the social control that is instilled to the members of the society. This ensures the members of the society are having social control and peaceful coexistence. This could affect globalization in a number of ways. For example, when there is no social control, the environment will not be conducive to business. As such, businesses will have the fear of selling products in the market. The fourth primary aspect is values of the culture. A value is a strong aspect in a cultural society and has effect on the decisions that are made by the people. Apparently, the values of a society explain anything that people have unanimously accepted to aspire to hold it in high esteem. Therefore, when a community values discipline, all the members of the community have to be disciplined. Without such, the society is likely to punish the people that deviate from discipline. This is one of the aspects that affect globalization and business orientation in the community. The last primary component of culture is the roles and statuses of the people in the society. Many societies have various roles that should be performed by various groups. These roles are strictly observed by these communities and people have to respect such an arrangement. Deviating from such an arrangement is considered unacceptable and can be met with stringent measures. These social agreements can affect the issue of globalization and establishment of businesses in the area. For example, when some groups are not allowed to perform certain duties, it is almost impossible for some people to perform such tasks. For example, in the ancient societies and cultures, women were not allowed to perform certain chores and tasks (Meyer 32). Women who violated such statuses as stated by their culture were at times punished while others were burnished. With such an approach, there are many businesses that are affected. This especially directed to the issue of gender equality in businesses. Some tasks are best executed by the other gender that is not allowed to tackle such tasks. Socio-Cultural Forces. There are several socio-cultural forces that are considered vital in a society. To begin with, there are social-cultural differences that affect globalization and businesses. For example, some societies have some cultural practices that are at heart. As such, they will have undivided respect to such and they are not changed in the long run. This is a force that could affect a business (Rehbein 13). While some cultural practices are strengths to a business, others are retrogressive and could affect the business adversely. Since some of these social cultural practices are not changed, the business could be affected as long as it is still in operation in such a cultural society. The second force that could affect a business is the child rearing practice. Some societies are categorical about rearing their children and this could affect the business establishment. For example, child labor is an offence in some countries. Therefore, these countries consider it a punishable offence where child labor is explored. However, some societies are enhanced by the issue of child labor. The third force that affects business and globalization is the issue of cultural change. Some cultures accept change since change is inevitable. Many societies have gone through various changes citing the change in the world. This is at times a positive attribute in business as the culture changes to favor businesses. For example, some societies and cultures have changed the statuses of many groups. This also brings change to businesses as they exploit the change to favor business (Hopper 24). The fourth force in culture is the issue of discrimination. Some cultures discriminate various aspects of the community. This could affect businesses as they strive to reduce the effects of discrimination. The last force in culture is cultural identity. Some cultures are categorical about their identity and will maintain their identity through all odds. This could affect any business establishment as they do not accept fusion with other aspects. Therefore, there is no instance where the culture of a society will accept fusion with other cultures. This could affect a business especially when the business wants to incorporate various aspects of different cultures. Importance of Awareness of These Forces. Before starting a business, there is a need for the management to conduct a research in the area to familiarize with the socio-cultural forces. To begin with, the business will know how to control these forces. This will enhance the business to greater heights. Apparently, knowing these forces will ensure the business is prepared to make the appropriate changes to limit the effects on the performance of the business (Meyer 23). However, neglecting such an approach will be detrimental to the business as it will be short of control measures. This could lead to dismal performance of the business. Consequently, this is one of the aspects that have had a negative impact on globalization as many businesses are established before any awareness of the socio-cultural forces that could affect the business. Advantages and Disadvantages of Trade Protection. The first advantage of trade protection is that there is creation of employment. Many countries are faced with the atrocity of unemployment. However, when there are massive businesses established in the country, many people find employment avenues. This helps a great deal as many people work to the benefit of the nation. As such, the country gets substantial taxes. Secondly, business protection helps other businesses to have constant access to raw materials. This is a positive attribute to manufacturing industries that need constant supply of raw materials. For example, agricultural businesses provide consist supply of raw materials to other businesses that need them. Thirdly, business protection provides continuity of business. Some businesses thrive through protection as they provide vital services and products (Meyer 15). For example, protection ensures food producing businesses are in constant operation. This is a positive attribute to the consumers as they find constant supply of the products and services they need. As such, there are very few cases of price escalation. Lastly, trade protection ensures there is constant supply and demand of products. This reduces instances where people have to pay excessively for vital products and services. As such, the economy is defined in a stable manner. On the other hand, trade protection is a disadvantage in various ways. First, it leads to unwanted competition. Some businesses in the economy do not produce the best products and services but they still get high demand. This affects other businesses that are striving to give high quality products and services. Secondly, some infant businesses are gagged. These businesses are disadvantaged as the already established businesses are holding dominance in the market. As such, the infant businesses find it hard to sprout in the same market. Thirdly, trade protection leads to dumping. Some businesses concentrate on production of low standard products and dispose these products in some markets. This affects the market as it has to deal with the menace of these low standard products (Hopper 25). Lastly, trade protection is a disadvantage as it encourages monopolization. Some businesses hold a large market and they remain the sole suppliers of such products. As such, the market does not have options in the supply of these products. This could adversely affect the market as it has to use the product offered by these monopolies without settling on any other option. In conclusion, trade protection is a prudent approach to business. Trade protection ensures various businesses are operational and provide constant supply of products and services. However, there is a need to enhance trade protection in various aspects (Rehbein 21). For example, some businesses monopolize the market, making it hard for entry of new businesses. This affects other businesses that would have provided high quality products and services. Works Cited Hopper, Paul. Understanding Cultural Globalization. New York: Polity, 2007. Print. Meyer, Sonja. Globalisation, Culture and Work. New York: GRIN Verlag, 2008. Print. Rehbein, Boike. Globalization, Culture and Society in Laos. New York: Routledge, 2007. Print. Read More