Globalization Impact On International Business

THE IMPACT OF MANAGEMENT IN THE GLOBALIZATION OF BUSINESS

Globalization has had an increasing vital impact on international marketing & a major trend in business. This is nothing new. International trade has been going on since the beginning of civilization. However, in the 20th century, trade expanded rapidly due to advances in communication, transportation, and management. As the cost & complexity of operating overseas is reduced by globalization, more markets are susceptible to international organizations. These organizations or multinational corporations produce & sell products or provide services in two or more countries. There are over 40,000 multinational corporations currently operating in the global economy, most of these corporations are manufacturers operating in fields that frequently involve technical change, e.g. computers & electronic equipment. Corporations in such fields have large research organizations in the country of its headquarters. Most global corporations mandate that their employees learn English which in turn causes some of the workers to experience loss of status & disbelief in their language capabilities. People do not realize how immensely culture influences their behavior until they come across other ways of doing things. Environmental differences are related to cultural variations such as climate, plants, animals, etc. When people have to deal with people from other cultures, even the slightest differences can make them uneasy.