Management And Organizations In A Global Environment

Management: Organizations in a Global Environment

Main body

Describe about the Management and Organizations in a Global Environment?
 

Globalization often considered as a cause that arises on the boom time that many economies of the world has experienced before the global financial crisis in 2008. The growth in the global supply chain and international trade were viewed as the prime forces for the prosperity of the global economies. It highlighted that the enthusiasm for the globalization would viewed as economies shrank after the financial crisis. Since, world trade took a hit that increases the fear and protectionism was described. However, many processes had been set so that the world can continue able to gain benefit from the globalization concept. These observations draw connection between globalization and economics, politics and businesses. Many studies have recognized globalization as the kind of phenomenon that may be an effect and cause of several events and with the implications of several disciplines. International events that appear to be beyond the control of anybody can actually have serious impact on the business decision making by influencing the environment within which the business operates. For example, the financial crisis in the USA affected hugely in-spite of its occurrence in an industry with several regulations that is spread across the world. The lack of progress in the negotiation of Doha that commits to free global trade which affects exports of the firms. Governmental responses and terrorism have led to closer examination of the cross boarder movement of the products that raises the operational cost of the businesses. Many restrictions on the visa and immigrant issues are also bounding international choices of developing staffs that actually affecting the globalization process. The evaluation of globalization has to be accommodating the complexity of the present multidimensional nature. However, the globalization concept has able to generate considerable strength in the past few years. Especially, in the industrial sector, introduction of globalization have generate huge amount of opportunity for the companies. Since, it provided them the opportunity to expand the business all over the world. In fact, studies have identified the fact that globalization plays a key role to a new dimension of the businesses.

As opined by Ghemawat, the 2008 global crisis have forced many individuals to reformulate their beliefs about the globalization and market. The book of world 3.0 highlighted the crisis and its afterwards affects on the economy that covers several reactions across the economic and political spectrum. Many experts have expressed their belief that want and need of the world market and want the financial system of the world to continue its trajectory. Many also argue in favor on the government, as they perceived that the government has little impact on the process of globalization as compared to the marketers. However, financial crisis have influenced economies to restructure the entire economical processes so that it can actually manage to handle future situation like this much more effectively. According to Aas (2013) society have to respond according to the change in the economic condition with completely new strategies. However, Ghemawat brings together completely opposite standards as it joins economic integration with national rules and regulations. The book also proposes more integration so that the economy can able to achieve higher propensity within the rules imposed by the government to surpass those problems that an unbound market can actually cause to the economy. Altbach (2015) emphasizes on the semi-global market. Since, geographical distance or national boundaries are considered as the important distinction.

Factors affecting globalization

The problems that cause problems for majority of the people about globalization are not that complex, if businesses, individuals, and political authorities approach them with new attitudes and ideas. Understanding of the global market is crucial to fix the problems that are arising from the issue of globalization (Scott 2013). The fixing of the global problems depends on several factors that the economy has to counter. Firstly, the economy will have to focus on the issue of global concentration (Palan, Murphy and Chavagneux 2013). Fears of oligopolies and monopolies arise primarily from the misconception that single-world economy is possible in the market. Many studies have made on the international companies that actually depicts increase amount the competitions among the businesses. Therefore, it reduces the chances of forming global concentrate economy. Global externalities are another factor that mentioned in the book of world 3.0. As many complains that globalization increases activity in both domestic and international market, pollution level also tend to increase (Baylis, Smith and Owens 2013). However, the study mentioned the fact that the environmental affect has minimized with the use of green technology. In fact, global cooperation has cut rain up to 65% in the recent years. In addition, private organizations are also trying to focus on the global ecological issues in order to minimize the negative impact on the environment.

Anthony Giddens illustrates globalization as the intensification of social relations linking societies in such a way that all the local incident are shaped by the events, which is happening thousands of miles away (Beck 2015). However, all attempts at defining the processes of globalization not necessarily results in simplification. Giddens describes four factors of globalization. Firstly, it focuses on the world capitalist economy. Since, the major concentration of power is come from the capitalist economy. The international and domestic economic policies of these capitalist states involve many forms of rules that cover economic activity. However, institutional companies maintain insulation. It allows variety of scope for the international activities of the businesses (Benería, Berik and Floro 2015). In present time, the biggest transitional organizations have budget higher than those of all but few countries. The second factor of globalization has participated long in the reflexivity characteristic of modernity as a whole. According to Docquier and Rapoport (2012) sovereignty have to be evaluated as something that monitored reflexively. It also related to the replacement of the frontiers at the initial state of the nation-state system. In fact, the state claimed the autonomy inside the territory that is passed by the recognition of borders by different states. The third factor illustrates the world military order (Fujita and Thisse 2013). This is crucial since the modern weaponry holds massive destruction power. In fact, every states processes huge excess amount of military. Even the third world weak economy countries are also having powerful military system. At the time of the cold war, the two most developed countries in terms of military power, Soviet Union and the United States of America develop a bipolar system of military alliances of truly global scope. Fourth factor of globalization deals with the industrial development (Dunning 2014). The prime aspects of this expansion of the global division of labor, which includes the differentiation between less and more industrialized areas of the world. 

Globalization and poverty

According to Evans (2012) globalization is a form of increase amount of integration through investment and trade is an important factor that plays a key role in minimizing the global inequality and poverty. However, effectiveness of globalization depends on many other factors as well. In fact, many argue the fact that there is a misconception regarding the kind of impact that globalization actually can make on the poverty level of the society. They argue the fact that the prime impact has been made by the national policies regarding the implementation of the globalization (Narula 2014). Therefore, government of the countries will have to utilize the globalization in such a way that it actually can able to cover negative aspect of the process. According to Hay and Marsh (2016) poverty is one of the major concern for the entire world. Since, almost 5 billion of people are currently lives below the poverty line. As a result, many argue the fact that the globalization impact on the poverty level is not as much as it looks like. However, many studies also argues with the conclusion that globalization does not have too much impact on minimizing the poverty line of the world. According to Hirst, P., Thompson and Bromley (2015) after the implementation of the globalization, there is a steady decline in the proportionality of the poverty as compared to the whole number of world population. Since, globalization has developed the concept of outsourcing in the business environment. This has played extremely crucial role in developing job opportunities in the developing countries. As a result, the world has able to minimize the number of people lived below the poverty line. Hitt, Ireland and Hoskisson (2012) highlighted the fact that globalization has positive impact on the per capita income of the people of the entire world. Since, many businesses have able to develop and expand because of the globalization. Traditionally, globalization minimizes economies poverty because more number of integrated economies tends to grow very quickly and this amount of growth is diffused widely (Kaplinsky 2013). Particularly, in case of low-income economies, people can actually move to below the poverty line to a better jobs or lifestyle because of the implementation of the globalization process. In addition, globalization has brought about the competition among the economies. This has played crucial role in developing strong and powerful economy all across the world.

However, globalization also has certain amount of negative impacts on the economy. As mentioned earlier, outsourcing of work increases job opportunity in the developing countries but it also increases the opportunity to miss-utilization of the globalization (Murray and Overton 2014). Many incidents were found were companies having practices outsourcing because it has able to get labor or worker at a very cheaper price. In the present environment, globalization has increases job insecurity to new level. Since, it induces employees to face challenges not only from the domestic market but also from the international market as well. Globalization has minimizes the chances of many small size organization or startup firms to develop their businesses effectively (Pieterse 2015). Since, the startup firms now not only have to compete with the challenges from domestic market but also have to face challenges immense competition from the international businesses as well. In the third world countries, many belief that globalization has completely diminishes the popularity of the traditional product of these economies.

According to McGrew and Lewis (2013) globalization is primarily benefited the companies the most rather than to consider the entire society for the development. Many believe that globalization provides opportunities to major multinational companies to utilize the resources of the third world countries. However, they do not focus too much on the development of these host countries. As a result, the benefit of the globalization process restricted among the developed countries people. In fact, many argue that globalization actually increases the differences between developed economy and underdeveloped economy. According to Moghadam (2012) globalization not only affected the differences between the economies but also increases the differences between rich and poor people within the economies. This is a major issue particularly in the third world. Since, globalization influences rich people to become even more rich and poor people to become even poorer. However, the positive impact of globalization cannot be ignored as well. As globalization influences international trade to occur much more effectively, it increases the bonding among the different economies. In addition regarding the globalization process also recently enforces developed economies to manage their businesses in such a way that the benefit of the process can actually shared with both the countries. WTO initiates specific rules and regulations for the effective implementation of the international trade so that both sides can have equal amount of benefit from this processes. 

Conclusion:

In conclusion, it can be mentioned that globalization is an issue that need to be handle very carefully so that it can prevent all the negative impacts affecting the economy. However, it has to mention that the forces behind the globalization process cannot be prevent or stopped. Therefore, it only have to direct in such a way that it actually can able to help the economies to move forward in a developed way. It is also very important that an economy develops globalization that is socially and economically sustainable. Since, sustainable form of globalization proves to be more beneficial to reduce cost that will actually help the entire humanity. Direct impact of globalization is on the health system as well as on multinational trade, policies and agreements. On the other hand, indirect impact of globalization has its affects on the factors like trade liberalization. Hence, extremely important factor actually can make or break an entire economy.  

References:

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