Global Expansion Management Strategies

Global Expansion Management Strategies

Introduction

Today, operational processes differ from country to country and organizations in this regards use various different measures to realize potential growth in new regions, as to increase their market share, competitiveness, and for better growth in regional and global profits. In this regards, the paper provides an in-depth analysis on the global expansion and strategies that are implied by the organizations to achieve such potentials. Moreover, the paper enhances reader's knowledge about global world economy and the importance of globalization in today's global economy. In addition, the paper will also provide thoughts with practicalities on how political and cultural differences act in regards to considerations of global expansions. Furthermore, lastly, the paper will gave suggestions and recommendations according to the analysis conducted for global expansion management strategies.

Global World Economy &the Importance of Globalization in today's Global Economy

Globalization is the more recent phenomenon of the capitalist world economy as it is the result of developments in technology and science. The efficiency of the means of transport, communications, and the construction of supranational institutions that support it, such as the WTO (World Trade Organization) and the various regional economic blocks that just over a decade are in the process of consolidation characterized by the free movement of goods, capital, and services between countries (Hughes & Rog, 2008).

Today, more than ever, the market is controlled by large multinational corporations that have investments across five continents, and the state ends up being an instrument of expression of these corporations. The globalized world has defined a new organization of geographical space, with an impact on all regions of the world, increasing the differences between the developed and under-developed, and between social classes within each of them.

The scientific and technical achievement promoted by this new phase of world capitalism was out of reach for many. Several movements have emerged around the world, because of the negative consequences caused by globalization, which reached all countries, including developed. Such movements assume that multinationals have gained so much power that is shaping the world according to their economic interests (Karatayev et al, 2007). There are strict rules that organize the global trade in goods and services. These standards are set and controlled by the WTO, which theoretically has the power to decide on all world trade, although prevail in applying these standards, the interests of the major powers.

WTO rules aim to promote greater flow of goods and services between countries belonging to it, mainly by reducing tariff barriers, since globalization requires more open markets to the movement of goods and services. When defending their economic interests, developed countries are ensuring, above all, room for expansion of multinational corporations. Already underdeveloped dispute their investments, opening their markets by reducing or exempting the payment of taxes, donating land with all necessary facilities such as transportation, communication, sanitation, etc. to attract install branches of these large corporations.

Globalization does not stop here. With the Internet and advanced telecommunications, sellers and technical experts present more trade, more markets, ...