Major Shifts Caused by Globalisation

MASSEY UNIVERSITY

School of Management (Albany)

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Honesty Declaration 

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1. Paper number: 152.261 International Business.

2. Question :Major shifts caused by Globalisation

3. Due date: 10th August 2015 (4pm)

4. Student’s name. Kothare, Amit

5. Student’s ID.15101296

6. Student’s contact: amit.kothare@rediffmail.com , Mob: 0223930856.

7. Lecturer’s name: Dr Yuanfei Kang.

This essay is about the Major shifts caused by Globalisation. We will explain what Globalisation is and would also see the major shifts caused by Globalisation. We will then see Globalisation from the point of view of a general consumer, worker, company and an environmentalist. First it is important to understand what Globalisation is:

“The term Globalisation refers to the shift towards a more integrated and interdependent world economy” (Hill, Cronk, & Wickramasekera, 2015)

To explain Globalisation, we can say that the world has now moved from a trade, investment, language, government regulations, culture and business systems which were restricted within a country to a more diverse and open market trade which is now global. The world has now become small due to innovations in transportation and communication technology which are now adapted worldwide. Due to this, the economy of a nation is getting interwoven and heavily relies on global economy. We can refer to this occurrence as Globalisation which has given birth to International business. This is the world where products are designed and created using ideas which comes from across the world. A developed country’s economic stability becomes uncertain because of a crisis in a developing country’s economy and vice versa. As stated by (Hoen, 2014) Globalisation makes a “smaller” world by institutional convergence.

As globalisation created international business, in this business world the concentration were on the major shifts which were globalisation of markets and productions. We can refer globalisation of markets to the combination of ancient individual national market into a giant cross country global market. This has diminished the limitations of trade and made it easy to transact, purchase or sell globally. These has not benefited only the consumer who has now wide range of options to select from but has given a boon to industrial goods and materials that cater to the global needs. For example the commodities markets which deals in iron ore, oil and wheat; for industrial products such as motherboards, memory cards; and for financial markets such as foreign exchange and bonds.

In the global market we can see that the same companies compete with each other. Major companies like Samsung and Apple. A company would follow the other company to a country of their non-existence to prevent their competitor from getting the 100% of the market share. When a company starts a new venture in a nation it brings with it their learning in other market, the ideas that worked for them, along with their products, operating and marketing ways and the most important their brand. This brings quality of being all of the same kind across the global market. The benefit of the globalisation is not only enjoyed by a giant company but also a small company is benefited as it might be supplying a key component to the big company.

We can refer globalisation of production as getting the goods and services from places around the world to take the advantage of the cost difference and quality of factors that are the key elements for the production (such as labour, technology, land and capital). By adapting this policy it helps a company to enter in this competitive market with its product at a competitive price an excellent quality and expertise service to the end customer. When a company outsources to a supplier it will see that it gets the best and would rely on a supplier who is the best in that particular category. By doing so the finished product of the company enhances its chances of garnering orders in the global market.