Definition of Globalisation
Discuss about the Development And Globalisation Of Antimicrobial.
The essay helps in analysing the different kind of issues caused due to globalization in different contemporary organizations. Globalisation is defined as the trend of increasing the interaction between the companies or individuals on worldwide scale as there is advances in communication and transportation technology. It helps in representing global integration of the investment, international trade along with cultures. The stages of the phase model of globalisation has to be identified along with analysis of the advantages and disadvantages of the same.
Global Business is referred to the international trade wherein it is the organization doing business across the world. The exchange of the different goods and services in multiple countries and it engages the business among multiple countries as well. the global strategy of business is the strategic guide to globalization and it allows the revenue of the business not to be confined by the other competitors (Lee & Vivarelli, 2006).
Globalisation is defined as the international integration and this is the general process of unification of the whole world that includes social, economic, cultural and technological unification. The advent can be divided into three eras that includes pre-world war era, during the world war and post-world war era (Andersson & Andersson, 2017).
The advent of globalisation has changed the process through which the companies performs that includes change in structure, leadership strategy and changing in the planning strategy of the different functions of the organizations. These kinds of different factors that has been resulted from the different changes include:
- Cross-cultural differences
- Workforce Diversity
- Emergence of different global managers
From the above points, it can be analysed that globalisation has brought in different kind of positive and negative effects in the developed countries. Globalisation has tried to remove the poverty from different developing countries wherein both developing and developed countries has benefitted from globalisation. With the help of globalisation, the different countries have opened the capital market and this has assisted the different organizations in operating easily in different countries as they could change the currency as per the choice of their own and this has attracted foreign investors (Mitchell, Font & Li 2015).
Furthermore, it has been seen that in the era of the globalisation, it has been difficult to operate in multiple countries as there are different types of regulations. The education is the positive impact of globalisation as this has allowed the different individuals in learning and gaining training facilities from all over the world (Law, Tan & Azman?Saini, 2015). For instance- When a person who wants to learn a subject that is not available or taught in one specific country, then the person can move to the country for learning the indigenous subject and spread the specific knowledge.
Global Business and its Strategic Guide to Globalization
Lastly, globalisation has assisted in boosting export and enhanced the technological advancements. The different large organizations are adopting different technological advancements to deal with various operations in an effective manner. The necessary training is provided to the employees as to make them understand about the different kind of collaboration with the big companies (Muscalu, 2014).
Unemployment is one of the major issues that is faced by different developing countries as the individuals prefer working with the organizations in the developed countries. As there are different companies, wherein the use of the technology is limited and they are not able to compete with the multinational companies in the developed countries. Globalisation has caused the unemployment more in developing countries as the employees are shifting from the developing to the developed countries for search of jobs.
Globalization has increased inequalities and the gap between the rich and poor has increased and this has increased in the skilled jobs. There are different individuals who are skilled enough to get skilled jobs, however there are individuals who do not have much quality on the different new technological advancements and this is making difficult for the individuals to get skilled jobs.
The outsourcing work has increased to a huge extent as the foreign workforce offers cheaper labour for different service-related positions. The outsourcing of the work is an internal function that helps in minimising the expenses of the company because of the language barriers. In Australian economy, it has been seen that there are organizations that offer jobs and this can lead to suffer in the quality work and this will be affecting the rights of the workers in the organizations as well and there is increase in the competition among different companies in both developed and developing countries (Oberlander, Disdier & Etilé, 2017).
The globalisation has been accelerated by the falling of trade barriers and harmonisation of trade in the electronic age. This brings reduction in the bureaucracy surrounding the entire international trade in the world. There are four stages in the four phases of globalisation are based on the different kind of Australian Companies that includes the following:
- Exporting
- Cooperative Contracts
- Strategic Alliances
- Wholly Owned Affiliates
The first phase is export that is derived from conceptual meaning that means to ship different goods and services out from one country and this literally means domestically produced goods and services to the different customers in foreign countries. There are different advantages and disadvantages of the export that includes the following:
Advantages and Disadvantages of Globalisation
- There can be expansion of the market and this will be less dependent on single one
- The greater production leads to better margins and greater economies of scale
- The development and research development budget work harder and this helps the products in the new markets (Kohler, Guschanski & Stockhammer 2018)
- Main risks are involved with exporting are high financial kind of costs, trade barriers and political along with cultural complexity
- The cost of administration may rise as there are different kind of export regulations when trading with European Union (Zajda, 2015)
The next phase is the cooperative contracts and this includes licencing and franchising. Licencing is the agreement in which the domestic country that is the licensor receives payments of royalty for allowing the other organization that is the licensee to produce the products and sell the services in specified foreign market (Hsieh, Lee & Yang 2015).
- Licensor do not have to suffer any kind of losses and it helps in lowering the risks of the government turnovers (Salvioni & Gennari, 2015)
- The licensee has much more knowledge in comparison to the local individuals
- The other firms cannot copy the trademark or patents given to franchisee/licensee
- Conflicts can arise between the licensee/franchisee or franchisor/licensor
- The secrets related to trade can be leaked in the other foreign markets (Gupta & Bhattacharya 2016)
- The licensor can start a new business for the identical product under the slightly different kind of name (Cabello et al., 2016)
The third phase is strategic alliance that is the agreement wherein the different organizations combine with the key resources, risk technology, costs and people. The strategic alliances are prominent in the entire global economy in which more than 20,000 alliances have been formed in the entire world over the last two years. There are four types of strategic alliances that includes joint ventures, equity strategic alliance, non-equity strategic alliance and global strategic alliance. The common form of the strategic alliance is the joint venture wherein two or more organizations are involved in partnership for a specific reason.
- It helps in making possibility for each of the partners to concentrate on different activities that helps in matching with the capabilities (Pieterse, 2015)
- It helps in gaining knowledge from developing competencies and partners that are widely exploited elsewhere (Gunn, 2017)
- There is adequate suitability of the different competencies and resources of the organization for it to survive in the market
- Language and cultural barriers along with clash of company culture and ego
- Dealing with different kind of conflicting objectives, corporate culture and company culture
- The alliance partner can become rival at some point and this can be a great danger for the existing firm
The last and final stage includes the wholly owned affiliates wherein these companies include facilities, foreign offices along with manufacturing plants that are owned by the parent company to the extent of 100%. This wholly owned affiliates include that all the advantages are gained by the parent company and they enjoy all the facilities effectively as well. It helps in creating complete control over the different foreign facilities.
- The parent firm is able to exercise the entire and full control over the different operations in foreign countries (Jayasuriya, 2008)
- It has been noticed that the different foreign companies look after the different operations of the foreign subsidiary on their own, it is not required to disclose the technology or the trade secrets to others
- Business is the expense of building different new operations
- Secondly, joint ventures are superior in nature to Wholly owned affiliates that is highly exposed to the environmental kind of uncertainty
- This includes the risks of delay and opportunistic behaviour
Conclusion
Therefore, it can be concluded that globalisation has different kind of negative and positive impacts on the contemporary organizations. The stages of the phase model of globalization has been discussed that included the different pros and cons of the four stages in an effective manner.
References
Andersson, Å. E., & Andersson, D. E. (2017). Globalisation in stages. In Economics of Globalisation (pp. 95-112). Routledge.
Cabello, F. C., Godfrey, H. P., Buschmann, A. H., & Dölz, H. J. (2016). Aquaculture as yet another environmental gateway to the development and globalisation of antimicrobial resistance. The Lancet Infectious Diseases, 16(7), e127-e133.
Gunn, S. (2017). Globalisation, education and culture shock. Taylor & Francis.
Gupta, P. D., & Bhattacharya, S. (2016). Impact of Knowledge Management Processes for Sustainability of Small Family Businesses: Evidences from the Brassware Sector of Moradabad (India). Journal of Information & Knowledge Management, 15(04), 1650040.
Hsieh, M. F., Lee, C. C., & Yang, S. J. (2015). The Impact of Diversification on Performance in the Insurance Industry: The Roles of Globalisation, Financial Reforms and Global Crisis. The Geneva Papers on Risk and Insurance-Issues and Practice, 40(4), 585-631.
Jayasuriya, R. (2008). The Effects of Globalization on Working Conditions in Developing Countries: An Analysis Framework and Country Study Results.
Kohler, K., Guschanski, A., & Stockhammer, E. (2018). The impact of financialisation on the wage share: a theoretical clarification and empirical test (No. 2018-1).
Law, S. H., Tan, H. B., & Azman?Saini, W. N. W. (2015). Globalisation, institutional reforms and financial development in East Asian economies. The World Economy, 38(2), 379-398.
Lee, E., & Vivarelli, M. (2006). The social impact of globalization in the developing countries. International Labour Review, 145(3), 167-184.
Mitchell, J., Font, X., & Li, S. (2015). What is the impact of hotels on local economic development? Applying value chain analysis to individual businesses. Anatolia, 26(3), 347-358.
Muscalu, E. (2014). Organizational culture in the age of globalization. Scientific Bulletin-Nicolae Balcescu Land Forces Academy, 19(2), 120.
Oberlander, L., Disdier, A. C., & Etilé, F. (2017). Globalisation and national trends in nutrition and health: A grouped fixed?effects approach to intercountry heterogeneity. Health economics, 26(9), 1146-1161.
Pieterse, J. N. (2015). China’s contingencies and globalisation. Third World Quarterly, 36(11), 1985-2001.
Salvioni, D. M., & Gennari, F. (2015). Corporate governance, sustainability and capital markets orientation.
Zajda, J. (2015). Globalisation and its impact on education and policy. In Second International Handbook on Globalisation, Education and Policy Research (pp. 105-125). Springer, Dordrecht.
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