The Impact of Globalization on Organizations

The Impact of Globalization on Organizations

Table of Contents

Hypothesis 3

Introduction 3

Scope 5

Methodology 6

Research data (evidence , findings ) 9

Conclusion 10

Hypotheses

This discusses the impact globalization has had on businesses and the way companies have to align their practices and structures to meet a competitive status

The hypothesis that we have established for research is that global companies have an over-growing and dynamic positive impact of the globalization process in terms of increased sales , lower cost , better internal structure and improved

competitive status

Our hypothesis is derived from the importance of globalization in the present economy as is evident from the explosion of trade liberalization , information technology , and international division of labor . The study is based on secondary research conducted on leading firms in the global economy in terms of their sizes , industry and countries

Introduction

Globalization is the hot of the new era . It is the subject of profound debate and deliberation by theorists , social scientists economists , politicians and the like . Proponents of globalization argue that it has nurtured a stream of information exchange , increased the living standards of the poor , integrated and increased the awareness of several cultures worldwide , toppled the previously unleashed forces of communism and propagated democracy in the real sense , increased the purchasing power of all social classes and decreased inequality between the rich and the poor . Corporations are expanding in terms of increased commerce in local and global markets , more efficient and greater productivity of the employees and the firm itself , improved customer service and a better competitive status . In contrast , opponents argue that globalization has created inequality in all dimensions and has materialized the West at the expense of the developing countries

It is difficult to define globalization because of a number of different interpretations . At times , different meanings have led to different opinions , leading to a segregation of popular view on the subject Globalization has been simply defined as the growing interconnectedness of the world through cross-b flows of information , capital , and people (Held , 1999 ) and as a process consisting of technological , economic , political , and cultural dimensions that interconnect individuals , firms , and governments across national bs (Dierks ) Anderson (1999 ) has divided the definition into five distinct components

1 ) The increasing tendency for firms to think , plan , operate , and invest for the future with reference to markets and opportunities across the world as a whole

2 ) The growing ease and cheapness of international communications , with the Internet the leading aspect

3 ) The trend towards closer economic integration , resulting in the diminished importance of political boundaries . This trend is fueled partly by the first two trends , but even more powerfully by official policies aimed at trade and investment liberalization

4 ) The apparently growing significance of issues and problems extending beyond national boundaries and the resulting impetus to deal with them through some form of internationally concerted action and

5 ) The tendency toward uniformity (or harmonization , by which norms , standards , rules , and practices are defined and enforced with respect...