Globalization and Business Management

Globalization and Business Management

Introduction

Business management involves getting people together to attain desired aims and objectives. Globalization refers to the removal of hindrances to communication, trade and cultural exchange. Globalization in business management deals with the liaison of transnational markets and management of businesses in the global industry. Globalization in business management is done with the help of foreign investments through which companies expand their businesses and invest in foreign countries. Globalization on global shift has created an international business environment which is changing faster than ever before. This has not only simplified the business operations in the world but also created a global village in the environment of business. Globalization has fundamentally augmented the level of economic interactions and business connections between countries. As a result, organizations' management teams are competing to form the abilities and competencies required to comprehend and appreciate a race of beliefs, traditions, principles and customs that are profoundly different from their own. Discussion

Organizations do business in a different way as compare to the way they used to do a generation ago. The term globalization or global shift is used to describe the impact of changes in the competitive landscape stimulated by the competition worldwide. This is because of the development and progression in technology, education, communication, transport and fair trade regulations. This advancement attracts firms to engage in international trade and international business. Managers face a number of challenges in managing their business in the global landscape due to increased competition within the industry. They need to make good decisions to keep their customers and attract more for their products.

Products that were only available in western countries are now available across the globe. Under developed areas and developing countries can now benefit from the latest technologies from developed areas, and apply them in their business management processes in order to attain increased revenues. World economies are getting highly integrated because of globalization, for example; internet and use of mobile phones have brought people from different geographical areas, closer. Businesses are able to outsource work to any part of the world with the help of internet connection and better traffic infrastructure.

This transformed landscape of business has a variety of positive impacts, which includes cross-cultural management, use of technology, poverty alleviation, lowered trade barriers, integrated world economies and so forth. Other than positive impacts there are major concerns that businesses have to take in to account in order to survive in the global market.

Lowered Barriers

In past few years, industrialized countries applied high tariffs on foreign products to protect local manufacturers. For example, few countries including West Germany, United Kingdom and Italy enforced an average tariff of 25 percent of the price of the products. On the other hand, developing countries adopted the policy of 'import substitution' in which they used to establish high prices for international producers to stimulate domestic industry, and their tariffs were more than 100 percent of the price of the product they ...