Globalization Communications & Business

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Globalization
Business conducted on a global scale is normally spearheaded by multinational corporations. The companies show economic strength and carry out deals ranging in billions of dollars. International firms have their policies centered on a global perspective. Innovative business culture and wide knowledge of international markets enable these firms to become global competitors in less than four years. Smaller businesses that wish to conduct business on a global scale benefit from structures such as the internet among other technologies that help them reach a global audience at a low-cost. This trend of conducting business beyond regional borders is known as globalization (Wild, Wild and Han 35).
Globalization is the emerging economic, cultural, and technological interdependence among different countries worldwide. Globalization of markets benefits an organization by reducing costs through standardization of marketing processes (Wild, Wild and Han 36). If the market at the organization’s home country is too small or too saturated to make a reasonable profit, globalization helps gain access to larger markets, which, in turn, translates to greater profits. Globalization of production is also beneficial to an organization. It gives access to labor that comes at a low-cost, helping the company save on the production cost and to lower its product prices (Ghauri and Powell 80). It provides access to countries with technological expertise giving the business a technological edge over its competitors. In situations where natural resources are either unavailable or too expensive in the business’s home country, globalization gives access to the regions where these resources are available and at a low-cost (Wild, Wild and Han 37).
Among the factors driving globalization is the eradication of barriers to trade and financial investment. Countries have become less uptight with their trade restrictions. Globally, different nations have realized that creating investment opportunities for foreigners is of benefit to the local community, government, and the business itself. Institutions such as the International Monetary Fund, World Trade Organization, and the World Bank provide enticing incentives for countries that embrace globalization, further benefitting the globalization agenda (Wild, Wild and Han 38-39). Technology has also played a crucial role in promoting globalization. Innovations such as social media and video conferencing have helped ease communication worldwide, while advancements in transportation technology have helped ease the delivery of products and services (Westerfield and Abbink 188).
However, globalization has raised questions over whether it has been of benefit to most countries. In his Article The Pros and Cons of Globalization, Mike Collins analyzes the advantages and the downside of globalization. The first of these arguments is on jobs. Globalization of production allows the business to forego enlisting labor in its home region and instead employ labor in a country where it costs less. Sourcing labor externally deprives the developed country of jobs that would uplift the local economy. It instead creates employment in developing countries, leadin...