Introduction
The modern world can be characterized by the gradual disappearance of borders and barriers that, for centuries, have been slowing down the speed of interaction between various states, nations, and cultures. The emergence and development of different means of transport, including aviation, made long travels faster and safer. The evolution of technologies and digitalization facilitated information exchange and provide individuals with huge data amounts. The combination of all these factors contributed to the growth of a globalized society deprived of limits and full of opportunities for successful cooperation. All these alterations also impacted business, one of the most important spheres of human activity in the modern world. Today, people can observe drastic changes in methods and approaches used to manage various companies and accomplish essential tasks that emerged under the impact of globalization, and it’s becoming an integral aspect of international relations.
Definition
The scope and complexity of the process, along with its significance for the modern world, preconditioned the appearance of various definitions. From the perspective of the business sector, globalization can be determined as a spread of products, information, jobs, relations, and services across national borders and engagement of all cultures in this interchange (Steger 15). Economically, it also means the increased interdependence of all nations because of the new options for trade and cooperation (Steger 15). The majority of giant and the most influential corporations today act at the global level because of numerous benefits associated with this method to continue the evolution and achieve success. In this regard, globalization can be taken as the factor that preconditions fundamental shifts in the ways business operates due to the need to meet the requirements of the new, almost borderless environment.
Rivalry
One of the first serious effects that are associated with this phenomenon is the rise of rivalry. The appearance of chances to enter new markets and affect new areas also means the need to compete with local actors that have certain positions and also try to preserve its dominance in the region. That is why under the impact of this factor, developing companies, foreign brands, and other international organizations have to improve their standards and devote more attention to consumer benefits to satisfy their diverse needs and guarantee a high level of interest in offered products or services (Power). From a global perspective, it has a positive impact on populations as they acquire the opportunity to enjoy high-quality goods that were previously unavailable to them. The ability to choose between brands is one of the issues that is also associated with globalization and its impact on the business world.
Development
Another sphere that was changed under the impact of globalization is the companies’ development vector. Correctly realizing the growing importance of the international market and multiple benefits that are associated with it, rising brands shift their priorities with the primary aim to affect wide populations and expand internationally to enter new areas and guarantee the broadening of the target population. In such a way, the modern business operates considering the existence of multiple regions where products or services can be sold or distributed to generate stable and high income and to overcome the closest competitors (Power). This change affects the structure of corporations that have multiple offices or departments in strategically important areas that can guarantee the improved interaction with the local population, consideration of their needs, and introduction of products that are designed regarding the existing demand.
Employment
Globalization also critically affected the employment sector by preconditioning the emergence of many changes in the approaches utilized by companies to work with its workers and organizations’ perspectives on staffing. Due to the impact of this factor, people from various regions and countries are now provided with jobs that can help them to improve the quality of life and self-actualize (Collins). Additionally, the rise of global organizations introduced the concept of outsourcing, which can be determined as the practice of hiring employees outside a company to perform special tasks, services, or manufacture goods that were previously created in the country of firm’s origin by its own staff (Wild and Wild 67). The given approach helps to include many populations into the work of various corporations and promote further cultural exchange and globalization. Moreover, diversity became the central element of the modern business sphere as in the majority of companies’ team consists of representatives of various cultures, who acquired a chance to work there due to globalization issues. It contributes to the generation of new ideas and increased effectiveness of departments if the correct approach to managing diversity is utilized.
Technologies
Digitalization can be taken as another change in the business that was promoted by globalization. The appearance of new markets and new regions that should be affected by companies means that there are many new departments and offices and that there is a need for more effective approaches to their management. Under these conditions, effective data exchange becomes a fundamental element of modern business (Wild and Wild 67). Moreover, many entrepreneurial and global corporations use technology to create new business opportunities such as E-commerce or improved cooperation with clients to acquire a competitive advantage and continue their evolution (Steger 87). That is why the technological aspect became one of the essential elements of global business. There is a certain interdependence between these two factors as the appearance of new devices contributes to the evolution of new types of business. In their turn, new ventures demand technological support to continue their gradual growth.
Environment
Unfortunately, there are some negative issues that are associated with the rise of globalization and the development of global corporations. For instance, there are multiple environmental concerns that appear due to the fast expansion of various industries needed to meet the demands of the business. The question of waste and pollution becomes one of the most topical problems of the modern world as humanity produces too huge amounts of harmful substances causing substantial damage to nature, deteriorating the quality of water, soil, and air (Collins). There is a tendency towards the shift to sustainable development among global corporations and decrease of the negative effects; however, the problem still exists and should be solved.
Conclusion
Altogether, globalization can be taken as one of the most powerful forces impacting the modern business world and preconditioning the emergence of various alterations in it. The development of new devices, increased level of rivalry, new perspectives on staffing, and diversity in teams can be taken as only a few examples of how this factor shapes the ways the sphere evolves. Unfortunately, there are several negative tendencies such as growing environmental problems that can also be associated with globalization, and that should be solved to ensure that high levels of sustainability will be achieved.
Works Cited
Collins, Mike. “The Pros and Cons of Globalization.”Forbes, 2015, Web.
Power, Rhett. “This Is How Globalization Is Affecting Entrepreneurs.”Forbes. 2018, Web.
Steger, Manfred. Globalization: A Very Short Introduction. Oxford University Press, 2017.
Wild, John, and Kenneth Wild. International Business: The Challenges of Globalization. 9th ed., Pearson, 2018.