[FINANCIAL BUSINESS, THEIR EFFECTS TO THE GLOBAL ECONOMY, LARGE AND SMALL BUSINESS, AND TO INDIDUALS]

by

Financial Business, Their Effects to the Global Economy, Large and Small Business, And To Individuals

(Proposal)

Background

In the past two decades, the world has gone through the method of globalization, one that determinants expanding financial, economic, communal, heritage, political, market, and ecological interdependence amidst nations. There are diverse international components and the international enterprise natural environment that impact the organisational performance. Yet, restricted empirical investigations have been undertook to enquire how globalization really sways organisations. International enterprise scholars (e.g., Clark & Knowles, 2003; Eden & Lenway, 2001: 45 - 50) issue out the need to discover farther the effects of globalization on organisations. Therefore, we aim to enquire the effects of globalization on administration performance. In this study, globalization is characterised as the method of expanding communal and heritage inter - connectedness, political interdependence, and financial, economic and market integrations (Eden et al., 2001 ; Molle, 2002: 25).

Problem Statement

At the macro grade, globalization is discovered to destabilise autonomy in household airline affray principle (Clougherty, 2001: 454). At the micro grade, globalization (operationalized as trade liberalization) is discovered to advance the performance of U.S. multinational enterprises (Oxley & Schnietz, 2001: 54). From these two investigations, we have wise that globalization is a multi - faceted construct. Therefore, the classification of its effects into distinct dimensions and the study of their impact on organisations verify to be worthwhile.

Significance

Since the 2000s, we have seen spectacular alterations in the international and international marketplace. Liberalization of world trade and capital markets directed by globalization has conceived a new and demanding comparable arena for all organisations (Nolan & Zhang, 2003: 14 - 58). With the tendency in the direction of more interdependence amidst countries, some alterations in the enterprise natural environment have emerged. There has been an emergence of international markets for items, services, work and economic capital (Deardorff & Stern, 2002; Hansen, 2002: 75 - 85). Consumers' claims round the world have converged (Fram & Ajami, 2004; Levitt, 2003: 65). Increasing trade and buying into liberalization evoked by improvement in transport and connection technologies has produced in bigger volumes of international enterprise transactions (Deardorff et al., 2002; Fawcett, Calantone, & Smith, 2007; Fawcett & Closs, 2003: 59 - 85). These aforementioned tendencies have conveyed about two key effects of globalization, international market possibilities and international market risks (Hitt, Keats, & DeMarie, 2008; Molle, 2002; Sanchez, 2007: 45 - 85). It is conspicuous that globalization not only presents more possibilities to organisations, but furthermore higher grades of risks (D'Aveni, 2004; Jones, 2002; Oxley & Yeung, 2008: 65 - 74). While possibilities can originate from globalization, affray and doubt are inevitable. Although often cited in past publications, empirical investigations pertaining these effects to administration performance are still scarce. This calls for a need to study globalization - performance relationships. These two dimensions along with our theoretical structure and hypotheses are considered next.

Literature Review

Globalization Effects

According to Harvey and Novicevic (2002: 66), diverse components ...