Evaluation of Business Globalisation Essay Example | Topics and Well Written Essays - 1500 words

Evaluation of Business Globalisation - Essay Example This approach supported business to expand operations and gain high profit margins. Globalizing process has affected work organization, business, socio-cultural resources, natural environment and economics. There are four different aspects of globalization identified by International Monetary Fund such as trade and transactions, people movement and migration, knowledge dissemination, and investment and capital movements. In this study some examples shall be portrayed to provide a clear understanding about advantages and disadvantages of globalization. Globalization of business refers to shifting of operations from one region to wide array of geographical regions. The impact of globalization in relation to business environment is divided into broad categories like product globalization and market globalization. Product globalization can be stated as service or product sourcing from other countries in order to gain competitive advantage. Price differences across the globe enables a company to gain long term advantage. The cost of production also reduces due to such globalization of business and in turn low prices are charged from customers. Market globalization refers to barrier decline in terms of selling products or services to other countries apart from home country. Companies are able to operate internationally due to emergence of globalization. Business strategies and marketing programs are designed by companies taken into consideration other cultures. Multinational firms should be able to understand the trend of developing na tions, mainly strategies adopted by government to redefine policies and interests. Globalization brings forth risks for companies and firms need to manage it appropriately (Doku and Oppong, 2011). This trend has benefited business operations since market opportunities can be explored of a wider segment, along with achieving competitive advantage in global market place. Technological advancements