Why globalisation should be encouraged

The intertwined growth of globalisation and technology still runs the risk of creating inequality. Cultural differences need to be taken into account by leaders — both international and organisational — when transacting with foreign markets and parties in this increasingly international environment. Globalisation has also facilitated diversity within employment markets.

Despite the political backlash towards immigration, it remains an important factor within tech markets. However, thinking globally is not without its challenges. Different countries mean different political landscapes, new regulations and regimes, shifting trade agreements, among other factors that business owners have no control over.

The fluid and unstable landscape certainly opens the conversation and initiates the question many countries have begun to ask; do the pros of globalisation outweigh the cons? Globalisation and technology have placed developing countries such as China and India in the spotlight, and the fourth industrial revolution is opening the markets for robotics and automation. Pascal Lamy, a Global Policy Board Member, believes that globalisation is set to continue due to two reasons: technology and politics.

What does our future hold? Our social and international systems seem to be in dire need of reconstruction, one that recognises diversity, and complexity. Political priorities are indeed changing, as are the processes that facilitate globalisation. Will this global phenomenon see a complete stand-still? For now, no; the gates to world economic trade have been opened, and closing them will take a significant transformation, and possibly revolt. But perhaps globalisation is indeed slowing down.

Currently, the force that is globalisation continues to power through, and our global economy still intrinsically relies on it. It was originally thought to be the solution to consistent financial growth, but economic leaders, political policy-makers, and innovative entrepreneurs are starting to rethink their predictions. How will you prepare for a new global landscape?

And in time trade barriers would drop to support even more multinationals expansion and economic gains while geo political cooperation would flourish. There is no question that globalization has been a good thing for many developing countries who now have access to our markets and can export cheap goods.

Globalization has also been good for Multi-national corporations and Wall Street. But globalization has not been good for working people blue or white collar and has led to the continuing deindustrialization of America. Globalization is a complicated issue. It is necessary to evaluate the pros and cons before drawing any conclusions. Supporters of globalization argue that it has the potential to make this world a better place to live in and solve some of the deep-seated problems like unemployment and poverty.

Free trade is supposed to reduce barriers such as tariffs, value added taxes, subsidies, and other barriers between nations. This is not true. There are still many barriers to free trade. The proponents say globalization represents free trade which promotes global economic growth; creates jobs, makes companies more competitive, and lowers prices for consumers.

Competition between countries is supposed to drive prices down. In many cases this is not working because countries manipulate their currency to get a price advantage. It also provides poor countries, through infusions of foreign capital and technology, with the chance to develop economically and by spreading prosperity, creates the conditions in which democracy and respect for human rights may flourish. According to supporters globalization and democracy should go hand in hand. It should be pure business with no colonialist designs.

There is now a worldwide market for companies and consumers who have access to products of different countries.

Gradually there is a world power that is being created instead of compartmentalized power sectors. When expanding into new countries, companies must be aware of how to navigate new legal systems.

Otherwise, missteps lead to impediments and severe financial and legal consequences. The political climates in the United States and Europe show that there are different viewpoints on the results of globalization.

Many countries around the globe are tightening their immigration rules, and it is harder for immigrants to find jobs in new countries. This rise in nationalism is mainly due to anger from the perception that foreigners fill domestic jobs or at companies moving their operations abroad to save money on labor costs.

For example, the Economic Policy Institute reports that the U. Both the benefits and challenges of globalization change how a business operates in different ways. When companies decide to go global, they must be ready and willing to change internal processes.

This helps to accommodate new markets and make their global workforce feel comfortable and accepted at work.

Companies see many aspects of their businesses change once they enter the global marketplace. For example, globalization makes the workforce more diverse. This diversity is an overall positive change, but it creates some challenges, such as language barriers and differences in cultural expectations. Before starting to branch out from headquarters, firms have to put an established internal communication plan in place since global employees likely work in a different time zone and have a different native language.

Software and other digital tools help smooth global communication hurdles and allows teams to connect easily. Zoom, Slack, and Google all provide valuable tools for companies trying to manage employees in multiple offices, countries, and time zones. Foreign employees have different expectations when it comes to things like salary and benefits, as well as how they manage their daily work schedules.

Companies that want to take advantage of globalization and hire foreign workers need to accommodate them as much as possible. HR teams must also ensure their offers are competitive and on-par with local expectations during the hiring process. Similar to communication changes with employees, companies must also plan for how they run customer service and support in new countries. Customers in the new market where you offer your products or services might not speak your native language or be close to your time zone.

International companies have to adjust more than internal operations. Going global opens up new revenue streams and increases availability to talent. Because of these attractive benefits, and the ease of going global due to services like International PEO, the global marketplace is competitive. As globalization becomes the norm, many companies often seek the same foreign markets, which increases competition for businesses. Just like hiring employees in different countries creates internal communication challenges, marketing your products or services to a completely new audience creates obstacles for companies.

Businesses need to adjust their marketing strategies to communicate the benefits of their product in a way that resonates with a foreign audience. Global companies stand to capture stronger growth and profitability if they can make headway into these markets. At the same time, international operations contain innate risk in developing new opportunities in foreign countries.

Potholes in Poland: Poor road infrastructure can be difficult for businesses that rely on road transportation. For organizations operating in developing and less-developed countries, additional challenges can arise, particularly in the following areas:. All of these factors—both benefits and challenges—should go into decisions about whether and how to expand globally.

Marketing, along with other business functions, can be affected for better or for worse by the advantages and disadvantages posed by global business. Organizational leaders must consider carefully how to balance costs and risks against the potential for gain and growth. Answer the question s below to see how well you understand the topics covered in this outcome.

This short quiz does not count toward your grade in the class, and you can retake it an unlimited number of times. Use this quiz to check your understanding and decide whether to 1 study the previous section further or 2 move on to the next section.

Skip to main content. Module Marketing Globally. Search for:. Reading: Globalization Benefits and Challenges Defining Globalization Globalization is a term used to describe how countries, people and businesses around the world are becoming more interconnected, as forces like technology, transportation, media, and global finance make it easier for goods, services, ideas and people to cross traditional borders and boundaries. Watch the following short video for an overview of globalization and its impacts.