Introduction
Being a ubiquitous phenomenon, globalization has affected a vast number of areas from business to culture, and it continues to have a profound impact on every facet of interactions (Singla, Ahuja, & Sethi, 2017). The business and communication environment has been affected by globalization to a significant degree as well (Aydin, Akinci, & Yilmaz, 2016). The global market has experienced impressive changes, with a massive improvement in the quality of services. The positive changes in product and service quality can be explained by the enhancement of diversity and the promotion of a multicultural dialogue between consumers and companies due to globalization.
Globalization: Definition and Causes
Typically defined as the process of expanding multicultural connections between states in an attempt to enhance international communication, globalization can be seen as a direct effect of economic expansion (Menichinelli, 2016). Exploring new horizons, companies enter the realm of the global market, where they have to communicate with a vast range of players (Singla et al., 2017). However, the subject matter can also be interpreted as a process of cultural integration, which is also a legitimate way of viewing the phenomenon since it implies an enhanced dialogue between participants worldwide (Menichinelli, 2016). Among the key causes of globalization, the improvement of global infrastructure and a drop in the number of tariff barriers needs to be mentioned (Singla et al., 2017). Thus, globalization can be seen as a natural process occurring in the context of the modern economy.
Globalization: Effects
General Effects
The phenomenon under analysis has mostly positive effects on the global economy in general. For instance, the introduction of multiple players into the field of the global economy leads to a steep rise in the levels of competition, thus, encouraging organizations to be innovative in their approach toward producing goods, delivering services, and communicating with their target audiences. In addition, the focus on multicultural communication leads to a drop in the number of misunderstandings and errors made by organizations in a cross-cultural dialogue.
Effects on the 21st-century Marketplace
Among the essential effects that globalization has had on the 21st-century marketplace, one must mention a steep rise in diversity levels (Cummings & Worley, 2014). Because of the focus that globalization has placed on intercultural communication, opportunities for catering to the needs of people from a number of socio-cultural and economic backgrounds have emerged (Singla et al., 2017). As a result, companies can attract diverse audiences and appeal to them respectively. Furthermore, the improved communication has led to a better understanding of target audiences’ needs. Thus, the existing demand is satisfied more efficiently due to the impact of globalization on the marketplace and the companies operating in it.
Moreover, globalization has affected supply chain management (SCM) to a considerable extent. With new technological advances and a strong focus on communication, global organizations use the global infrastructure to its best potential. The resulting drop in the instances of delays, product damage, and miscommunication shows that companies explore the opportunities that the global SCM provides to improve their services and meet customers’ needs (Cummings & Worley, 2014). Therefore, it can be assumed that globalization has vastly positive effects on the global marketplace.
Conclusion
Globalization has become an essential part of the modern world. The subject matter affects every aspect and facet of interactions between people worldwide, economic issues not being an exception. The global marketplace has been flourishing because of globalization due to the enhancement of SCM, communication enhancement, and the focus on quality. Furthermore, the recognition of multicultural issues leads to a vast improvement in the management of customer relationships and the dialogue with partners. Therefore, globalization can be seen as one of the crucial factors defining the existence of the 21st-century global marketplace.
References
Aydin, C., Akinci, M., & Yilmaz, O. (2016). The analysis of visible hand of government: The threshold effect of government spending on economic growth. International Journal of Trade, Economics and Finance, 7(5), 170-178. Web.
Menichinelli, M. (2016). A framework for understanding the possible intersections of design with open, P2P, diffuse, distributed and decentralized systems. Disegno – The Journal of Design Culture, 3(01-02), 44-71. Web.
Singla, A., Ahuja, I. P. S., & Sethi, A. P. S. (2017). The effects of demand pull strategies on sustainable development in manufacturing industries. International Journal of Innovations in Engineering and Technology, 8(2), 27-34. Web.