The Effects of Globalization to Business Organization

THE EFFECTS OF GLOBALIZATION TO BUSINESS ORGANIZATION

 

      Globalization is the term used for connecting the economy and businesses around the world it provides an easier access to their needs for technology, communication, infrastructure and manpower to do transaction internationally. This result in an increase in opportunity for local and foreign business, more products and services are provided. Globalization is more and more becoming a practice of business while countries are joining and interchanging their business through economic growth providing common means of distribution that has become networks that is govern by international rules and regulation as implemented by International trade policy.

      The emergence of globalization changes the system of business through more production output due to more customer based opportunity by open communication using various technologies like the internet. This changes various organizations including government through their purchase, manufacturing companies may increase their orders, even medical organization uses international adaptation to progress and innovation for faster efficient medical services. It led the organization to be motivated to participate and be involved in global approach in distribution even the newly established technology can understand the system that is now the current trend for growth.

      Business Process Outsourcing is a globalization process connecting countries to work together for a common goal and success in their industry. Usually a certain business may propose to do their business in their target country this will give their people employment generation and income opportunity and revenue for the government while the sponsoring business will reduce overhead while providing growth to another countries. This partnership creates a win-win situation for both countries.

      Globalization revolutionized information technology and openness in communication allow companies all around the globe instant access to provide business organization to create an alliance and networks according to their needs for example a certain garment factory in India would need additional materials for production and they felt that they are short in supplies they can gain a network of suppliers in China using the globalized marketing trends to immediately relief their needs. The network of supplier from other country will be very happy to gain new customers through globalization exchange.

      The use of the Internet created much more than expected it can even bring additional online business that can be developed, produced and processed online. Businesses can use and create their own websites to promote their business internationally, they can even gain more customers by using such technology more than buying and selling they can build customer based through personal interaction. There are various changes in business and organizational practices because of this new found technology and usually it is fast, accurate and safe practices.

      The business in Tourism in most countries has also benefited in globalization since people have a needs to travel for investment purpose as much as leisure. Tourism in most countries has been equally promoted because of globalization it opens up the multi-cultural approach in business interchange because of its policy, there is also an interchange or respect between countries because they must learn cultural preferences, norms and common practices including their local government policies of such countries in order to study their business practices and it opens up in a globalized industry. For example, the promotion of Export processing zone of South Africa has led Matla Corporation to study the people and their culture; somehow their tourism has also been promoted due to this practice.

      There are also controversies in globalization and in fact there are various businesses that have been affected negatively about the process that is it disguising to be revolutionary while in fact that accordingly it is a system of monopoly and only big companies can benefit. Their export markets has been taken over by other industries because of open market while they have been the one who have suffered much because they may not produce a bigger volume order that other countries can, they have lost customers even if they are the pioneers. Another is that higher cost of pesticide makes them impossible to use it. Globalization makes most farming products increased in its price. (Vandana Shiva 2002)

      In U.K. there are threats in their export products because of the imposed policy that has been set by the World Trade Organization they felt like they were taken over by big corporation in other countries and they could not do something about it. They are forced to follow the rules and if they could not comply to the conflicting ideas their exports would remain at risk, they felt like they are being exploited because such rules remains on the side of the bigger companies in other countries it should be reviewed or revise (Policy Statement on Manufacturing and Globalization, March 2002). Small and medium businesses in Asia have also express their ideas that only the bigger corporation will largely benefit in globalization, while most of their people becomes the laborers like the women in India. (http://members.tripod.com/global_india1/negative.htm.)   

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