GLOBALIZATION AND THE RADICAL CHANGES IN INTERNATIONAL BUSINESS ENVIRONMENT
Globalization in business is the integration process of the world through the use of international trading system it unifies the local and foreign market to make the trading even easier for business people, they have the luxury to choose their option and maximize their business potentials through global participation. The result of such process simplifies the corporate process of canvassing materials, production, distribution and marketing of products and services. The information system is a lot more different than the usual trading and businesses can easily get alliance, supplies and labor forces from other countries as long as they follow the rules set upon the global economic authorities including the International Trade or World Trade Center.
Globalization History can create arguments of when or where it usually started and who have been the pioneers of globalization but we know for sure this is the present conditions that the world has been experiencing. This new form of business relation and practices often referred to as global village which is radically changing the business environment and it is true and highly relevant, valid and accepted in today’s modern economy. In order for businesses to grow they must consider jumping into the globalization challenges to be able to compete and gain market shares. This has been the rules of the most successful business leaders around the world because the opportunity is there to bring different nations and businesses closer to one another.
Look around many establishment and you can find that international businesses are all around, FRANCHISING makes business easy to expand all over the world that a certain person who has the capacity to put up business from Asia can franchise a business in America and other countries examples are Mc Donald, Levis, Seven Eleven, Sarah Lee, Avon and many other stores scattered around the world because of globalization. There are many advantages in this process and anyone who would like to take a franchise business is almost assured of success because of its brand, they have ready market all over the world that has gained popularity, franchisor even offer full marketing assistance that makes your business franchise grows using their adaptable marketing expertise that they will be shared upon franchising such business.
BUSINESS PROCESS OUTSOURCING (BPO) makes a certain business maximize profit by partnership from other countries, businesses like JP Morgan and Chase, IBM Daskh, Teletech, ICT and other companies in Europe and America usually hire and establish businesses in our countries such as the Philippines and India since they are highly skills in English Communication. Usually their local people will be the one to handle jobs like Sales, Customer Service and Technical Assistance from customers around the world pretending they are a part of such company.
Through this process the company like IBM can cut cost their labor expenses while they enjoy productivity because of their highly effective BPO in other countries while people from other countries enjoys a good privilege from their job because of high salary. This can happen because of currency differences from other countries example is the Philippines 1 peso is equal to 44 in US currency. This means that they mutually benefit from this process. This has been the reasons why BPO is highly increasing demand of people. In the Philippines alone there are at least 100,000 Call Center people needed to fill in the vacancies of various BPO Companies.
ONLINE TRADING is the cause of globalization and advancement in technology that businesses can easily tap in customers using the internet, they can gain high market potentials using their website acting as an store-front to advertise their products and services that can be open 24 hours a day seven days a week. Hotels and Restaurant, Air Aviation and Local Businesses including individuals can easily use the internet to gather customers around the world. This can also cut cost their labor and transportation expenses through online participation, customers can simply fill in their information and take the orders and it will be delivered via cargo forwarding, the process is also convenient to their customers since it only takes a few clicks of a button to get an order. These practices also includes the IMPORT EXPORT trading that includes free trade or open participation that can give opportunity to most business organization and individual to gain international customers around the world.
There are also some Countries and Unions who believed that Globalization are somehow negative that only the strongest corporation makes the domination and small business may not grow. Some believed that credit based economy has not done any good but false claims that leads to heavy debt burden while some small businessman believes that globalization is only for imperialistic purposes. In other European and Middle East Countries somehow they believed that globalization may only favor for internationally known companies and this is not a free trade but the opposite. They are the Anti-Globalization Communities who are against this process, however their claim maybe, globalization will continue to dominate the business world.
References:
(http://www.newworldencyclopedia.org/entry/Globalization)
(http://sedonacyberlink.com/?p=816), (http://en.wikipedia.org/wiki/Globalization)
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