Origin of Globalisation
Discuss about the Globalization and Environment Reader System.
Globalisation is regarded as one of the major forces that is believed to shape the contemporary word, affecting the society, environment and business. In business context, it is a term that refers to the integration of the operations, strategies and processes of an organisation into the diverse cultures, ideas, services and products (Boons and Ludeke-Freund 2013). All the suppliers, consumes and the corporations over the world are linked with each other by the materials, information and the capital flows as because of the processes of production all around the globe has become increasingly dispersed and distributed. The process of globalisation is an ongoing process that is also referred to as a totalitarian representation of any system which is formed and shaped so as to vigorously reconstruct the political, environmental, social and economic factors for the improvement and betterment of the mankind. It has triggered the unchanged and fixed current that was previously prevailing in between the fast and the slow paced world.
The origin of globalisation has long been an ongoing debate among the scholars and the researchers. There are many scholars who consider this phenomenon to take place in the modern period, while the others believed it to be a phenomenon with a very long history. According to Najam, Runnalls and Halle (2016), the process of globalisation is triggered by the modern period majority of the developments took place in the areas of both business, connectivity as well as infrastructure all around the world with a very rapid pace. It in turn has led to the growth of more infrastructure and connectivity among different nations and the sharing of innovative ideas, culture, tradition and other different specialities in this way occurred. All these changes have put in both direct as well as intense effects on the process of globalisation. In context to economy, many trade linkages have took place among different nations on a global scale and it further has influenced both the global and national or domestic economies to a very great extent (Rodrik 2014). With the same, there are different scholars who pointed out that the history of globalisation can be traced back to the ancient civilisation as because of the fact that there were numerous instances such as the emergence of trade links in between the Sumerian Civilisation and the Indus Valley Civilisation in the third millennium B.C, that are proving the existence of trade and business links among different nations (Farmer, Sproat and Witzel 2016).
Impact on Business Competition
However, there are some studies that mentions that as globalisation has increased the trend of integration of global economic integration, it is one of the biggest force that is affecting the economies of the world at present (Gereffi 2014). The present period of the increase in the process of globalisation would have a major ramification for the business economies around the world. This paper is going to elaborate on the discussion and identification of the impacts of globalisation in the business today and on the knowledge about globalisation that the international managers must possess in order to stay ahead of the game. It would also shed light on the identification of how the process of offshoring and outsourcing contributes to the globalisation through using an example of a company’s case study in order to identify the barriers, identification and the opportunities present in today’s world due to the increase in globalisation.
It is because of the globalisation that there is such a notable increase in the competition in businesses (Hoffman and Kumar 2013). These competitions are based on series costs, product quality, product process, technological adaptation, target market etc. When a business produces its products and services with less cost, it then increases the share of its market. This is due to the extensive competition growth among the companies that the international bards have been forced to improve the standards of their products and the consumer benefits that are believed to positively affect most of the people in an international level. With the same, it has also contributed in a notable rise in the level of technology that is used in the present world. There are many entrepreneurial and globally oriented companies that have achieved the assistance of technologies in order to exploit the opportunities of the new businesses (Cavusgil and Knight 2015). One of the good examples of such is the increase in usage of the procedure of E-commerce in most of the businesses today. Technology is one among the primary tools of competition as well as the quality of products and services (Sakas, Vlachos and Nasiopoulos 2014). The process of globalisation has allowed great increase in the speed of technological transfer and apparently, has also improved the gross technological quality. There are many companies present in the capital intensive markets that are at a high risk and which is why they are in great need for well efficient and good technologies along with R&D management in their businesses. Moreover, with the increase in the process of globalisation, there is a huge increase in the rate of employment all around the globe (McMillan, Rodrik and Verduzco-Gallo 2014). There are many countries which have opened up great job opportunities for the young and worthy candidates. Students no longer have to waste their entire lives in search of jobs. There are variety of jobs present for each and every talents in the current business market. With the same, globalisation has also created the beneficial concept of outsourcing. The works of marketing, software supports, accounting and many more have been given to the developing countries like India, Nepal and Pakistan.
Impact on Technology
However, it is also to mention that globalisation is not all about good. It do have some negative impacts as well. It has contributed in the fluctuation of prices of the business all over the world in several different areas. With an increase in the level of competition, the business companies in the well developed countries are compelled to lower down their product prices. One of the very good example of it would be China. In China, they produce their products at very lower prices as compared to the other countries and this has led the other organisations and firms present in other parts of the world to lower their prices as well in order to maintain loyalty and customer satisfaction. It is indeed a negative effect as it reduces the potential of the firms to sustain the social welfare. Also, as globalisation has increased the rate of employment all over the world, it has also increased the level of job security in the businesses as well. In the developed nations, there is a significant amount of job insecurity (Czaika and Haas 2014). The process of globalisation have led the companied to outsource their jobs to the developing countries and this in turn has also led to less number of job opportunities in the developed countries. The concept of outsourcing took place as the businesses need to manufacture their services and products at cheaper rate that is possible in the developing nations like China and India where the cost of manufacturing and the wages are much lower than the highly developed nations. As mentioned above, the jobs like that of the accountant, software programmer and marketing etc. are outsourced into the developing nations and this has further led to huge number of people belonging from the same profession to lose their jobs.
Due to the emphasis of globalisation on diversity, it also a great impact on the manners companies manage their workforce and employees (Saxena 2014). Hence, having a proper knowledge and understanding of the impacts of globalisation on the management could assist the international managers in order to better equip their firms for the increasingly global business environment. From the early nineties, globalization has demanded a great amount of skills, resources and efforts from both the public and private organizations belonging from the already developed as well as developing countries with an aim to enable the international managers, public officers, researchers and executives in order to deal with a new reality and equating challenges. Although the former definition of the international management, management crossing borders reflects only the needs and interests of the big business firms as well as their managers. In the current business world, globalisation has greatly influenced the mind-set of both customers as well as the management and that too in a profound ways. However, unfortunately, the global economy at present does not reflect the existence of the political organisations that are defined as “Nation State” (Miller and Rose 2017). Today, there is an emergence of a new “Great Game” that is continually reconstructing the global economy not only around a specific collection of distinctive countries but one with the global economic institutions and with the membership well beyond the G-20 or G-7 group of nations. The barriers of globalisation are extremely complex.
Impact on Employment
With the rise in globalisation, the companies irrespective of their sizes are now interacting with the stakeholders and customers from the diverse cultures, social backgrounds and languages. When managers think about the things that could influence their roles, they often think in some of the concrete terms such as worker productivity, the products and services and the chain of command. Even in the smallest business, the issues of globalisation and intuition can greatly affect the managerial roles. With the globalisation, there is an increase in use of modern technologies in the business areas such as of internet, cellular information and high speed air travel and they have made doing the businesses across the borders very easy. According to Cavusgil and Knight (2015), more number of businesses are now “born global”. Expanding the business to the foreign markets is now not the only option for the first world firms. In fact, the small scale business from the small countries are now quickly reaching out the larger marketing in order to sustain themselves. In this world of globalisation, the international managers therefore must gain innovative perspectives and walk through a thin line in between the focus and efficiency on each of the individual market. They must be solely willing to examine the customers in every markets as well as to develop the services and products uniquely tailored for all their customers. International managers must be resilient, responsive and adaptable to the different demands while delivering their business customers seamlessly. They must deal with the cycles of changes that globalisation is bringing in and must try to stay ahead of the game always. They must always try to ensure that their business and the business executives are always close to the customers. In this globalised world, creating an inclusive and diverse workforce as become very important and they are believed to mirror the customers (Nishii 2013). Hence, developing staff knowledge, mind-set, ability to service the customers as well as creating a learning environment has become very crucial so as to support a flexible working in the workplace.
With the same, the process of globalisation of business could have a significant influence on the decision making process of the international manages in order to make such complex and interrelated decisions. The international mangers need to overcome the legacies of poor execution (George et al. 2016). Globalisation n has enables and ensured the introduction of innovations and new ideas from the outside sources such as countries, businesses, regions and industries. If the organisations are to succeed, they need excessive aggressive strategic policies at all the levels, inclusive of the ones that are made as well as pushed for by the international subsidiaries that has the ability to teach the headquarters that domestic innovations could create global opportunities for the success of the business.
Negative Impacts of Globalisation
The concept of outsourcing has long been one of the critical part of the circuit of businesses and is also greatly applied in the businesses of the modern days (Toffler 2013). It has first started in the textile industry and is increasingly spreading during the seventeenth century. With the increase in globalisation, outsourcing has become more relevant in the business process around the world and the global market has also now found out a new concept in the offshore outsourcing that is integrated with its numerous benefits. However, still as the applications and process in the business environments of today have become much more complex than ever before, the offshore outsourcing is extraordinarily making a transition towards the business process outsourcing. Globalisation has become a universal language as it has invaded all the important fields present in the human history inclusive of the business and the management. The growth of globalisation is apparent in majority of the aspects of business functions (Crystal 2013). Globalisation has furthermore paved the way for the tactical procedures such as offshore outsourcing and it has proven its potential in the InfoTech such as software management and data analysis. On the other hand, the offshore outsourcing has proven itself as one of the most useful products of the process of globalisation (Taylor 2017). Still, with the progress of time, outsourcing has experienced an exceptional speed. The offshore outsource not only offers innovations to the international market, it also has proven its potential to connect all the countries toward one development. Offshore outsourcing has built up linkages in between many countries and has also decreased the likelihood of ears among the supporting nations (Bardhan, IAFFEE and Kroll 2013). Globalisation has contributed a lot in making the offshore outsourcing possible and this has led the concept of outsourcing in helping in globalisation mobility. The concept of outsourcing is aiding today’s businesses by playing an important part in the globalisation mobility.
Hence, the influence of offshore outsourcing in the progress of globalisation is displayed by its impact in the global market that are the signs of globalisation. As of the fact that offshore outsourcing is involving exchange of the services, therefore, it is resulting in an increase in the global flow of capitals. It is also promoting the sped of multiculturalism and greater people access to the present diversity. The employees belonging from the outsourcing companies face more amount of cultural exchange because of the fact that they work in an environment that is different from the rest. With the same, the offshore outsourcing ease the development of the global telecommunications infrastructure as well, which in turn instigates a better connection in between different nations (Taghavi et al. 2014).
In the current years, the concept of offshoring of high paying service jobs to nations like India, has received a great attention from media. According to the estimation of last three years, off shoring has accounted near about 0.5 million people. The average lay-offs per year is 250,000 or say, it is less than 2% from the other 15million Americans who automatically lose their lay-offs every year (Boyle and McDonnell 2013). They are extremely beneficial to the current global economies as because of the fact that international trade has continuously increased over the 20th and 21st centuries and it is believed that this trend is going to continue for the coming years as well.
There are many companies who have used the concept of outsourcing in their business and they are indeed successful in it as well. Some of them include the AppSumo, Microsoft, Alibaba, GitHub, Groove, Fab.com, Slack, SeatGreek, and UpWork. Considering the case of Alibaba, a well-known E-commerce B2B company, has paved the way for the companies looking towards outsourcing. Before outsourcing most of its production to the China, the company has initially outsourced its developed to a firm in the United States as well (Simmons, Stringer and Rees 2013). At those times, the development of the overseas talent was still in very short supply and the United States had the skills that Alibaba required to compete with the ecommerce giants such as the eBay. With the same, it is also to note that the company did it all behind the internet restrictions in China. The company has realised the importance of outsourcing at its early technological development.
Conclusion
Hence, to sum up it could be said that globalisation is a social transformation and is an increased unity in between different countries. It is both constructive and destructive. It is imposing both positive and negative impacts in the businesses today. People all over the world desire the positives to outweigh the negatives but the prolonged exposure to the process of globalisation is something that is unavoidable and the one and only solution to it is that to make use of the resources present in the world in the best possible ways for the improvement and betterment of the society and businesses today. Furthermore, the sign of globalisation mobility are considered in the impacts of offshore outsourcing in the international village. The influence of the offshore outsourcing as one among the fastest developments in the current business world is evidently continuing to widen up its grip or range of various advantages. Apparently, it is also to note from the above discussion that offshore outsourcing is greatly benefitting the businesses today through widening its horizons from the various different companies and service providers to the entire global society. With the same, in this global world, the quality of the management is one of the central features of the success and growth. How the nations around the world and the companies present struggle with the great game of globalisation has now become the central test for the productivity and wealth creation process. Globalisation is indeed pushing the frontiers of the management thinking. It is also concluded that development of outsourcing to the contractors could provide steep talents to a start-up business when it requires it the most. The success story of Alibaba demonstrate that whether or not a business opts to outsource to a company, outsource work overseas or hire contractors from U.S individually, the correct approach could lead to success.
References:
Bardhan, A., IAFFEE, D. and Kroll, C., 2013. The Global Lessons of Offshoring. The Oxford Handbook of Offshoring and Global Employment, p.1.
Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-the-art and steps towards a research agenda. Journal of Cleaner Production, 45, pp.9-19.
Boyle, B. and McDonnell, A., 2013. Exploring the impact of institutional and organizational factors on the reaction of MNCs to the global financial crisis. Asia Pacific Business Review, 19(2), pp.247-265.
Cavusgil, S.T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies, 46(1), pp.3-16.
Cavusgil, S.T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies, 46(1), pp.3-16.
Crystal, D., 2013. A global language. In English in the World(pp. 163-208).
Czaika, M. and Haas, H., 2014. The globalization of migration: Has the world become more migratory?. International Migration Review, 48(2), pp.283-323.
Farmer, S., Sproat, R. and Witzel, M., 2016. The collapse of the Indus-script thesis: The myth of a literate Harappan civilization. Electronic Journal of Vedic Studies, 11(2), pp.19-57.
George, G., Corbishley, C., Khayesi, J.N., Haas, M.R. and Tihanyi, L., 2016. Bringing Africa in: Promising directions for management research. Academy of Management Journal, 59(2), pp.377-393.
Gereffi, G., 2014. Global value chains in a post-Washington Consensus world. Review of international political economy, 21(1), pp.9-37.
Hoffmann, J. and Kumar, S., 2013. Globalisation–the maritime nexus. In The handbook of maritime economics and business(pp. 65-94). Informa Law from Routledge.
McMillan, M., Rodrik, D. and Verduzco-Gallo, Í., 2014. Globalization, structural change, and productivity growth, with an update on Africa. World Development, 63, pp.11-32.
Miller, P. and Rose, N., 2017. Political power beyond the state: Problematics of government. In Foucault and Law (pp. 191-224). Routledge.
Najam, A., Runnalls, D. and Halle, M., 2016. Environment and Globalization: Five Propositions (2010). The Globalization and Environment Reader, p.94.
Nishii, L.H., 2013. The benefits of climate for inclusion for gender-diverse groups. Academy of Management Journal, 56(6), pp.1754-1774.
Rodrik, D., 2014. The past, present, and future of economic growth. Challenge, 57(3), pp.5-39.
Sakas, D., Vlachos, D. and Nasiopoulos, D., 2014. Modelling strategic management for the development of competitive advantage, based on technology. Journal of Systems and Information Technology, 16(3), pp.187-209.
Saxena, A., 2014. Workforce diversity: A key to improve productivity. Procedia Economics and Finance, 11, pp.76-85.
Simmons, G., Stringer, C. and Rees, E., 2013. Country of origin labelling and the New Zealand seafood industry. Dynamics of International Business: Asia-Pacific Business Cases, p.196.
Taghavi, M., Bakhtiyari, K., Taghavi, H., Olyaee Attar, V. and Hussain, A., 2014. Planning for sustainable development in the emerging information societies. Journal of Science & Technology Policy Management, 5(3), pp.178-211.
Taylor, P., 2017. The Globalization of Service Work: Analysing the 12 Transnational Call Centre Value Chain. Working life: Renewing labour process analysis, p.244.
Toffler, A., 2013. Revolutionary wealth. New Perspectives Quarterly, 30(4), pp.122-130.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
