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Globalization Impact on Business Operations Report (Assessment)

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Updated: Sep 8th, 2021

The world is undergoing a profound transformation that changes the whole way of life of humanity. Today, it is impossible to talk about the isolation of processes occurring in different regions of the globe. Fundamental changes in the economy and corporate structure of business sectors, the largest scientific and technological achievements, the creation of a worldwide information space lead to the formation of a global human civilization. Globalization is the most visible and dominant trend of modern world development. It is the totality of the processes of the formation of unified systems in the economy, finance, technology, political and legal sphere, information environment, as well as in culture and other areas of human activity.

Many studies, scientific, philosophical, and journalistic works are devoted to the study and comprehension of globalization. Firstly, this is explained by the fact that globalization is becoming a reality, which is open, multidimensional, and multi-level (Ariely 5). Its system-forming parameters are developed in the process of forming a unified world. Secondly, this process covers almost all spheres of public life, such as social, economic, political, and spiritual. Thirdly, the variety of definitions is due to the fact that scientific research reflects the different perspectives of globalization, which are characteristic of specialists in various fields of knowledge. Fourth, this diversity is due to differences in the objectives of the study and ideological landmarks. According to experts, the changes currently taking place are connected with a profound transformation of the world (Khondker 177). For several decades, society has been restructuring itself by changing the world view, core values, social and political structure, culture, and key institutions.

There are different and often diametrically opposed assessments of globalization. Some see the imminent onset of a bright future for humanity without borders. Other researchers of globalization predict an end in the form of the inevitable Americanization of the whole world and the transformation of the cultural diversity of modern civilization into a unified system (Roudometof 23). However, regardless of the assessment by researchers of globalization, most of them adhere to the point of view that the modern world is experiencing a certain critical period. It is defined as the bifurcation point, transitional age, and the era of uncertainty. According to a number of authors, globalization is a European phenomenon since, in the western part of the European continent, the most frequent is the deterritorialization of social and especially political norms (Roudometof 31). It is manifested in the erosion of national borders and the increasing role and significance of supranational principles. Many researchers believe that globalization is the process of forming a world society that transcends federal and state boundaries and acquires common economic, political, environmental, socio-cultural, and civilizational characteristics. All these descriptions are essential components in the overall formation and development of the global society.

A new business economy based on the principles of multidimensional communicative space began to take shape. Information technologies, transport highways, telecommunications, and other technical achievements of civilization significantly strengthen the significance of corporate space (Kim 269). The polarization of the world economy is intensifying, where supranational poles of economic and technological development are formed. Experts interpret globalization as a specific version of the internationalization of the economic, political, and cultural life of people (Khondker 173). It is focused on accelerated economic integration on a global scale with the maximum use of business and technological achievements and free-market mechanisms. It also involves the combination of existing national entities, a fundamental change in social, and cultural and civilizational, and natural ecological imperatives.

In the context of globalization, the national state ceases to act as the only entity that exclusively integrates the interests of large communities and represents them in the international arena. Transnational corporations with their multi-ethnic personnel, global professional communities, non-governmental organizations, informal interest groups that emerge on the basis of the internet are playing an increasing role in world politics and economics (Khondker 175). Globalization leads to a decrease in the function of state borders, an increase in the mobility of labor and capital, the development of uniform standards and norms, and, consequently, the unification of the world (Kim 278). There are a radical transformation and change of national institutions of state power. Globalization is a process in which nation-states and their sovereignty are woven into the web of transnational actors and subject to their power capabilities, their orientation, and identity. All these changes directly impact the business sector of many nations.

Leading nations require maximum scope for the action of economic forces and the restriction of the main forms of state influence on economic development. It is important to note that the globalization process has both a positive and negative effect on the enterprises by making them Americanized and free (Roudometof 19). This is accompanied by a growing socio-economic polarization between and within countries, increased trade and currency wars, aggravation of environmental problems, and other contradictions. The processes of globalization open up new opportunities for states and societies, but at the same time, they bring with them new challenges. Taking advantage of these opportunities and countering these challenges requires the development of a systemic security strategy by each national community. However, this implies the existence of a strong state capable of resisting the ideology of globalism and the methods of shaping the global market, which is imposed on the world by rich countries (Ariely 4). It should be noted that among scientists, there is no consensus on the existence of national states in the context of globalization.

The globalization of the world economy and business leads to changes in the nature of the world production process, contributes to the deepening of the international division of labor, and strengthening scientific and technological progress. It also significantly accelerates the process of internationalization of the activities of economic entities (Ariely 6). The globalization of the world economy opens up new business opportunities for business entities. In the context of globalization, small and medium-sized businesses (SMEs) are more mobile and able to quickly adapt to changes in market conditions, actively introduce new technologies, often successfully compete with large companies. SMEs in modern economic life can be viewed not only as entrepreneurial activities of business entities of various forms of ownership with the aim of earning profit through the production or sale of traditional and innovative products and services. Small and medium business is an independent sector, bearing a certain economic and social responsibility, with significant innovation and production and export-oriented potential (Roudometof 27). SMEs ensure the stability of socio-economic development, creating new jobs, and saturating the market with those goods and services that complement the system of public consumption.

In conclusion, globalization can be defined as a complex, dialectically contradictory transformation of previously existing processes of internationalization. It directly affects the economic, political, social, and cultural life of nations, their sharp acceleration and profound qualitative transformation, which leads to the formation of new commercial, geopolitical, sociocultural spaces. The result of such a change largely depends on the forms and methods by which it is carried out and will be carried out.

Works Cited

Ariely, Gal. “The Nexus between Globalization and Ethnic Identity: A View from Below.” Ethnicities, vol. 1, no. 1, 2019, pp. 2-7.

Khondker, Habibul Haque. “Globalization and Inequality.” International Sociology, vol. 32, no. 2, 2017, pp. 170-179.

Kim, Wonik. “Economic Globalization, Inequality, and Protest Movements under Capitalist Political Regimes, 1970–2007.” International Journal of Comparative Sociology, vol. 57, no. 5, 2016, pp. 267-287.

Roudometof, Victor. “Nationalism, Globalization and Glocalization.” Thesis Eleven, vol. 122, no. 1, 2014, pp. 18-33.

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