The Essay Explores Globalization's Impact On Business, Both Positive And Negative.

Positive Effects of Globalization on Business

 The study discusses the positive and negative affect of globalization and its effects on business.  Globalization has enabled society or people to enjoy numerous advantages, involving increased global cooperation,  decreased risk of worldwide conflicts, and reduce costs for commodities and goods. Unfortunately, it mainly led to negative impacts on the business environment. Industries as well as businesses that operate worldwide have an inducement.  Globalization can be defined as trying to enter the global business market as well as gaining influence in it. With the help of globalization, a specific organization can build international relationships and experience a constant flow of technology, information, and goods for consumers and countries. It can be considered that this study describes the key positive and negative effects of globalization on international business. In addition, introduce the liberalism and Marxism theories that define the key prospects for globalization here as well. It is worth mentioning that with the implementation of a globalization culture or strategy, an organization can easily prioritize such issues and have a significant impact on their business practice.    

Globalization in business makes available both foreign and local products to the customers and therefore maximizes their choices and preferences. Globalization mainly leads to tough competition among manufacturers which upgrades the quality as well as reduces the costs of products.  Globalization is perceived as the procedure by which organizations and businesses develop international impact and begin operating on a foreign scale.  This refers to the main open flow of details, products, and technology among nations and customers.  This openness takes place through the different relationships from technology, business, and also geopolitics to media and culture (Chowdhury, Dhar, and Stasi, 2022).   Globalization's positive effects are the spread of innovation and technology, reduce costs for goods,   access to specific new cultures, markets, and talents, and "higher standards of living across the world".   The study has identified that there are some challenges in the globalization process are managing worker immigration,   loss of local jobs and immigration issues,  difficulties in global expansion, cultural identity loss, foreign employee exploitation, compliance, and payroll problems, and incurring export fees, and tariffs.  Globalization can change regular business operations. The negative and positive effects of globalization transform how a company or business operates in various ways (Erixon, 2018). When businesses select to mainly go global,  the companies must be willing and ready to transform internal processes. This support to accommodate specifically new markets as well as make their global employees feel comfortable accepted and valued at work.  Organizations observe several aspects of the business transformation once they start and enter the new marketplace.  For instance, "globalization" makes the organization's workforce diverse.  Moreover, diversity is perceived as an overall effective and positive change, yet it creates several challenges like cultural expectation differences and language barriers.  The study has examined the organization of the operational change should anticipate from globalization involve:  international worker expectation, increased competition, global communication issues, supporting international consumers, communication, and also marketing changes. With the help of globalization, a particular organization can build international relationships and experience a constant flow of technology and information along with goods for consumers and countries. Dabic, Maley, and Novak (2020) observe that with globalization, the organization is enabled to engage with new advanced technology and innovation that helps other organizations increase their business values. This is the most effective positive impact of globalization. As such, developing countries are constantly innovating new technology that is providing organizations with the flexibility to improve their working performance, along with productivity, and with globalization, other companies are getting opportunities to get that technology into their business operations. Another positive effect of globalization is that organizations can enter a new culture and experience a new working framework within other countries' cultures. According to Tang, Wang, and Yu (2020), with the adaptation of such a culture, organizations get the opportunity to hire new talent in their workforce that belongs to different cultures. For example, a person sitting in a UK-based office is experiencing an Asian country's working ambiance in their workplace.

Negative Effects of Globalization on Business

Globalization, according to the Liberalism theory, is the process of expanding and changing a specific business. The common result of globalization is that it fulfills human beings' economic desires and gives them political liberty (Zajda, 2018). When a specific organization is planning to enter a specific country, they need to follow this country's political factors. With globalization, organizations are enabled to understand the political factors and modify their business strategy and operations depending on such political factors. Also, with globalization, the organization gets an advantage in some particular fields, such as communication and translation, along with getting suitable legal acknowledgment and arrangement of institutions that sustain the flow of their business. It can be considered that customer exceptions from a specific brand are widely determined by their cultural interests, and for the organization, it becomes necessary that they develop their product along with service as per such cultural interests. Because it is influential in developing a good brand image in a competitive market. With the adoption of a globalization culture or strategy, the organization can easily prioritize such things and impact them widely in their business practice (Tijssen, van de Klippe, and Yegros, 2019).

It is worth mentioning that with globalization, organizations get offered lower-cost foreign labor in different positions and these positions mostly belong to service-related categories. But with that, their quality of service has been greatly impacted negatively in their business, such as when they were not able to take control of service and, for that reason; the quality of service was sometimes compromised within that position. As per Shittu et al., (2020), the organization experienced a good amount of hidden costs and the whole service process was delayed. It has been observed that this kind of incident mostly takes place because of culture and language diversity. For example, a particular organization hires employees overseas whose native language is a different language. When they come to give service in their country, they are not able to communicate with customers efficiently, which delays the overall service procedure. With globalization, the organization was able to use other countries' advanced technologies in their business, but they faced difficulties with such technology or innovation in their business operation (Asongu et al., 2020). Many countries, for example, develop their technological tools' features and interfaces based on their language, and when they are used by different language-based organizations, they encounter difficulties.

Figure: Globalisation in business

(Source: Researchgate.net, 2022)

As per the theory of Marxism theory of globalization, their principal concern is the development of a specific product or service, and in their development process, the most important part understands the proper expectations of customers regarding the product. Otherwise, they would experience difficulties in their business (Mavroudeas, 2019). Despite all of this, it has been observed that organization management leaders at some point we're not able to understand such expectations of customers. For that reason, their profitability was negatively impacted and that can be considered a negative effect of globalization. It is worth mentioning that with the process of globalization, the organization gets many new investors in their business operations that are held by them to expand their business. But such investors are mostly international, and their cultural intranet is different for that reason. It is developing conflicts among the management leaders.

For every organization, their existing employees are their backbone, and for that reason, they maintain a good relationship with their employees; otherwise, it will negatively affect their work productivity. But when the organization introduces overseas employees to their workforce, it creates a toxic environment in the workspace, along with employees' work productivity gradually decreasing, which is considered a negative impact of globalization. As such, existing employees are comfortable with a particular behavior or language. As per Osinubi, and Olomola (2020), when overseas employees join such a workforce, they communicate with other employees depending on their cultural background, which creates a burden among employees to communicate effectively.

Conclusion 

It can be concluded that organizations that have undergone globalization have been prepared to interact with highly innovative technology and innovation, which assist other organizations in increasing their business values. This is the most significant positive impact of globalization. It can be argued that as a result of globalization, organizations are increasingly being offered low-cost foreign labor in a variety of positions, the majority of which are in the service sector. However, this has harmed their business's quality of service, such as when they are unable to take control of the service.

 References

Asongu, S.A., Efobi, U.R., Tanankem, B.V. and Osabuohien, E.S., (2020). Globalization and female economic participation in sub-Saharan Africa. Gender Issues, 37(1), pp.61-89.

Chowdhury, E.K., Dhar, B.K. and Stasi, A., 2022. The volatility of the US stock market and business strategy during COVID?19. Business Strategy & Development.

Dabic, M., Maley, J. and Novak, I., (2020). An analysis of globalization in international business research 1993–2018: the rise of the skeptics. critical perspectives on international business.

Erixon, F., 2018. The economic benefits of globalization for business and consumers. European Centre for International Political Economy.

Mavroudeas, S., (2019). De-globalisation and the Return of the Theory of Imperialism. Globalization & public policy, p.13.

Osinubi, T.T., and Olomola, P.A., (2020). Globalization and income inequality in Mexico, Indonesia, Nigeria, and Turkey: A dynamic GMM approach. Asian Journal of Economics and Empirical Research, 7(1), pp.91-104.

Researchgate.net, (2022). [online] Available at: <https://www.researchgate.net/figure/The-forces-leading-to-globalization-Source-G-Stonehouse-J-Hamill-D-Campbell-T_fig1_338013119 > [Accessed 23 April 2022].

Shittu, W.O., Yusuf, H.A., El Houssein, A.E.M. and Hassan, S., (2020). The impacts of foreign direct investment and globalization on economic growth in West Africa: examining the role of political governance. Journal of Economic Studies.

Tang, J., Wang, W. and Yu, Z., (2020). Globalization, ICT investment, and firm dynamism. Transnational Corporations Review, 12(2), pp.193-202.

Tijssen, R., van de Klippe, W. and Yegros, A., (2019). Globalization, localization, and globalization of university-business research cooperation: General patterns and trends in the UK university system.

Zajda, J., (2018). Globalization and education reforms: Paradigms and ideologies. In Globalisation and Education Reforms (pp. 1-14). Springer, Dordrecht.