how diversity impact globalization of business?

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General Management

how diversity impact globalization of business?

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The ability to conduct business internationally is an absolute necessity if you hope to remain competitive in todays marketplace Globalization has served to stabilize business and financial markets in such a dramatic fashion that many industrialists have yet to reach an understanding of the depth and breadth of the impact it has had on lowering political financial and economic volatility Business globalisation is refers to a business expanding its sales and their assets over the national boundaries involving a surge in capital labour goods and services Coca cola is a perfect example as they have profitably expanded their business in the global consumer market Coca cola has used various tactics to achieve this To reduce their production costs they have established transnational corporations They have also focused on product branding and positioning and revised their prices according to the competition In the past two decades globalisation has greatly increased It has had a significant impact on the management of businesses Globalisation is defined as by the OECD is The geographic dispersion of industrial and service activities for example research and development sourcing of inputs production and distribution and the crossborder networking of companies for example through joint ventures and the sharing of assets OECD Globalisation is making the economy of the world increasingly interdependent This can be seen in the growth of trade increase in flow of capital and also a boost in Multinational economic activity For their macroeconomic health world economies depend on each other Glimpse of the Past Globalisation over time Globalisation is not a new phenomenon In reality it has slowly and gradually been making its way in the world economy since the dawn of time Until the recent times its impact has not been visible The Chief Economist of the World Bank Nick Stern divided the expansion of globalisation into three phases Phase One initiated in 1870 and ended during the 1920s and 1930sinterwar period with a descent into global protectionism This was a time of speedy growth in the international trade This growth was increased by the economic policies that aimed to liberalise the flow of trade and also by the rapid development in technology this reduced the costs such as of transportation Phase Two After the Second World War the second phase of globalisation was aided by a rise in the world trade and also the reconstruction of the economy The establishment of new international economic institutions supported this expansion In order to promote stability in the monetary system provide a sound basis for multilateral trade and to help restore economic activity the International Monetary Fund IMF and World Bank were created Their aim was to promote economic cooperation between nations Phase Three The current wave of globalization is demonstrated by a quick rise in the ratio of trade to GDP for many countries and also by a continuous increase in the flow of capital between countries and the trade of goods and services Main Motivations and Drivers for Globalisation A large motivator of globalisation is the desire of MNCs to enhance their profits and returns Globalisation is also driven by the enthusiastic approach that individual national governments have to take full advantage of the wider macroeconomic and social benefits that are a result of increased trade of goods services and the rapid increase in the flow of financial capital The main drivers of globalisation are as follows Technological change especially in communications See Answer

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how diversity impact globalization of business?

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