Effects of Globalization on Business
Globalization is the process of incorporating different cultures, ideas as well as technological knowledge throughout the world. In the business sphere, globalization in simple terms means that no country maintains prominence, but the world becomes a single global market of individual consumers. Globalization in business has its advantages, meaning that in this context it would be positively supportive and effective to its activities.
(1, Premise) Culture is a key element in business as it defines the different mindsets, tastes and preferences that people in the marketing environment are traditionally used to. The various cultures have manifold approaches that are equally competitive and are employed to transacting commerce. For this reason, sharing and learning from each of the cultures leads to discovering new business ideas and new relationships. Through globalization, multiculturalism emerges, and people worldwide can mingle and socialize especially through the internet communication. (Boudreaux, 2008). Besides, suppliers find useful information about the needs of people taking into consideration their cultures and attempt to create products tailored for the diverse sets of consumers. (1, Conclusion) Therefore, multiculturalism plays a major role in opening international markets by allowing business people to interact, understand each other and share information concerning business needs.
(2, Premise) Globalization removes the barriers to business activities globally and promotes free trade, which is advantageous to businesses that need to expand their markets. Businesses should have opportunities to explore different markets and limitless opportunities outside their scope. They also need to identify new technologies in order to find the most efficient ways of doing business and serve diverse markets. This necessity has resulted in the disclosing of international markets for business people as well as reducing tariffs, taxes and subsidies between nations. Barriers are completely discouraging various forms of international business; they restrict traders by limiting the amount of products they can import from different countries. Globalization, however, brings relief to businesses through regulating tariffs and encouraging foreign trade. Free trade also facilitates competition since companies invest efforts and innovation to become the best providers of certain products to beat the completion within their industry. In its turn, increased competition means an improvement in quality since companies manufacture good products to not risk losing the market share of their brands. (2, Conclusion) In conclusion, globalization is beneficial because the increased number of business networks internationally signifies that the companies do not have to be locked in their mother country.
(3, Premise) Through globalization, business policies around the world are merging, and the decisions shared by many leaders from different countries are constructive and favorable to everyone. Business representatives from different nations converge to share ideas and renew agreements, thereby showing new ways of doing business and encouraging new relationships between their countries. Thus, business leaders are now more connected with their counterparts from other states and continuously exchange innovations, creating common policies and encouraging entrepreneurship (Collins, 2015). An important facts is that interactive policies have eliminated dominance by some countries through instituting standards on business activities and products. As a result, there is a common expectation from all stakeholders in terms of quality and procedures. (3, conclusion) Thus, a common business policy integration and support for business activities create a healthy business environment when all participants know their expectations relative to the needs by all stakeholders.
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In conclusion, globalization has opened easier channels for business people to interact, share ideas as well as ensured quality goods and services by creating a healthy worldwide business competition. Everyone in this sector now has the access to unlimited opportunities to explore and venture deeper into business all across the globe.
To make the given assumption, deductive and inductive types of reasoning were used. Deductive reason means a number of premises which are assumed to be true are used to draw one conclusion, while inductive reasoning seeks to give strong evidence but not absolute truth of the conclusion. To be specific, in the third paragraph, I employed deductive reasoning by using free trade, reduction of tariffs and increased competition to conclude that globalization is good. However, in the first paragraph I used inductive reasons. The truth is that globalization has integrated diverse cultures such as African, Arabic and Indian; thus, the conclusion is not necessarily true.