Define the meaning of the term “Globalisation” and assess its impact on the
way businesses operate.
Introduction
This report assesses the essential aspects of globalisation and its impact on
businesses and outlines both its positive and negative effects.
Globalisation refers to the process by which companies operate internationally to
provide and produce goods and services. This concept has been around for a while
and has evolved to fit the needs of different regions and global settings. International
business allows companies to reach more customers and provides a broader range
of opportunities than ever before. However, Buckley and Casson (1976:10) state that
globalisation is where “firms will attempt to maximise profit in a world of
imperfection." So, globalisation is a complex ideology that connects countries
through various sectors such as trade, finance, technology, and culture. On the other
hand, globalisation has led to economic inequality and job losses in some regions.
Globalisation has expanded over the years due to the ease of connectivity with the
rest of the world. It has envisaged a no-border policy with countries, opening a
broader world market that exceeds local and nationalistic boundaries, resulting in the
free movement of capital, goods, and services across international borders.
Positive impacts
Globalisation has positively impacted various aspects of life by increasing
international trade with a driven approach. Markets have rapidly expanded, allowing
1
, businesses to reach hard-to-reach areas quickly. Thanks to globalisation, we can
now taste authentic goods from around the world at the click of a button. Sicilian
pastries and fresh oranges from Spain have become accessible globally. Not only
this, but anyone from around the world can purchase these goods.
Moreover, multi-trade agreements have enabled businesses to expand into multiple
markets, operate in different countries, and reach more customers, ultimately
boosting trade and sales (Elden,2021). Not only this, but businesses also begin to
understand different diversity and cultural differences, which expands business
ethics and ideas and customer retention. For example, McDonald's offers vegetarian
options in India and adheres to kosher dietary needs in Israel.
According to Guttal (2006), globalisation and liberal democracy are intertwined,
enabling the rise of neoliberal policies that facilitate globalisation. This demonstrates
the freedom of business flow, sharing principles with less government involvement.
However, not every business would benefit from it because cheaper imports may
threaten smaller businesses. Powerful companies entering developing countries
have had negative consequences on local businesses. This has led to the
elimination of numerous small and medium-sized national enterprises, making it
challenging for them to sustain themselves in the market and grow. (Sichula, 2007).
Moreover, according to (Raihan,2019), globalisation has been a driving force in the
business world and has contributed significantly to its growth. For instance,
globalisation and free trade have boosted economic integration, and technology
revolution has made geography and time irrelevant (Passaris,2006). We can see that
products and services are more accessible than ever.
2
way businesses operate.
Introduction
This report assesses the essential aspects of globalisation and its impact on
businesses and outlines both its positive and negative effects.
Globalisation refers to the process by which companies operate internationally to
provide and produce goods and services. This concept has been around for a while
and has evolved to fit the needs of different regions and global settings. International
business allows companies to reach more customers and provides a broader range
of opportunities than ever before. However, Buckley and Casson (1976:10) state that
globalisation is where “firms will attempt to maximise profit in a world of
imperfection." So, globalisation is a complex ideology that connects countries
through various sectors such as trade, finance, technology, and culture. On the other
hand, globalisation has led to economic inequality and job losses in some regions.
Globalisation has expanded over the years due to the ease of connectivity with the
rest of the world. It has envisaged a no-border policy with countries, opening a
broader world market that exceeds local and nationalistic boundaries, resulting in the
free movement of capital, goods, and services across international borders.
Positive impacts
Globalisation has positively impacted various aspects of life by increasing
international trade with a driven approach. Markets have rapidly expanded, allowing
1
, businesses to reach hard-to-reach areas quickly. Thanks to globalisation, we can
now taste authentic goods from around the world at the click of a button. Sicilian
pastries and fresh oranges from Spain have become accessible globally. Not only
this, but anyone from around the world can purchase these goods.
Moreover, multi-trade agreements have enabled businesses to expand into multiple
markets, operate in different countries, and reach more customers, ultimately
boosting trade and sales (Elden,2021). Not only this, but businesses also begin to
understand different diversity and cultural differences, which expands business
ethics and ideas and customer retention. For example, McDonald's offers vegetarian
options in India and adheres to kosher dietary needs in Israel.
According to Guttal (2006), globalisation and liberal democracy are intertwined,
enabling the rise of neoliberal policies that facilitate globalisation. This demonstrates
the freedom of business flow, sharing principles with less government involvement.
However, not every business would benefit from it because cheaper imports may
threaten smaller businesses. Powerful companies entering developing countries
have had negative consequences on local businesses. This has led to the
elimination of numerous small and medium-sized national enterprises, making it
challenging for them to sustain themselves in the market and grow. (Sichula, 2007).
Moreover, according to (Raihan,2019), globalisation has been a driving force in the
business world and has contributed significantly to its growth. For instance,
globalisation and free trade have boosted economic integration, and technology
revolution has made geography and time irrelevant (Passaris,2006). We can see that
products and services are more accessible than ever.
2
