Introduction
During the last three decades, the world economy has changed from independent national economies secluded by trade obstacles and administration systems towards a situation where the obstacles are diminishing, values are joining and international markets are amalgamating (Ciravegna, Fitzgerald & Kundu, 2013). This has impacted businesses in Britain in that they now look beyond Europe for investment prospects.
Most companies have an opportunity to move to emerging markets and the threat of competitors entering the British market as a launching pad to the European market. Companies in America face similar fate. Hong Kong companies face the challenge of competitors entering the free China market.
International Business
The global economy is being altered by globalization. Organizations can no longer disregard activities being conducted outside their national borders. Events that transpire in one location impact the rest of the world. Persons who consider acting in seclusion simply because they work in a small domestic company are unrealistic.
Individuals who ignore these facts stand a poor chance of working even in the small domestic companies. The management of these companies are aware of the fact that even small companies require taking advantage of international opportunities hence require employees with international business knowledge (Philips, 2013).
Globalization has been made certain and real by technology. The advancement in technology has made the world a small village. This is through modern communication, information dispensation and swift transport thus bringing the world almost together. The availability of the internet is probably the single most important innovation of the 20th century that has increased the speed of communication and availability of information fundamental to conducting business.
Such information is available in real-time. Without technology, globalization would not have been possible. Through communication technologies, organizations can easily locate manufacturing conveniences in the world, organize undertakings among different divisions and transport raw products to the plants and finished goods to the consumer more efficiently than in the past when technology was limited (Kirkman & Law, 2005).
There are four central tenacities for undertaking universal commercial learning. First, it is important to understand the origins of differences in different countries and the effects on businesses.
Second, the array of challenges encountered in international platform is broader and more multifaceted compared to domestic business settings. Third, multinational companies need managers who are able to operate within the confines of administration interventions. Fourth, one requires the understanding of how to transact using different currencies involved in transactions.
During the last 20 years, the use of internet has shot up. Billions of people are currently using it. Among the largest repercussions of the internet is its part as an equalizer. All business organizations stand the same chance of attaining requisite information and equal communication chances for conducting business.
The location of businesses, scope and time zones are no longer issues of concern in terms of communication. The location of any given business is no longer an obstacle or advantage in conducting business. Operations are connected through the internet thus permitting companies to manufacture in advantageous places.
China is continuously moving towards free-market restructurings. Therefore, if and when these trends continue, it will become a trade giant in predictable future. The country has over one billion people. However, it is chiefly an unexploited marketplace for companies. Founded on the purchasing power parity (PPP) foundation, it is estimated that the economy will be greater than that of the US. Currently, the yearly foreign direct investment (FDI) has soared from $70 billion in 2007 to over $100 billion.
The European and US-established multinationals are experiencing the pressure emanating from corporations based in China. Chinese-based multinationals enjoy low-cost production hence are able to offer the consumer with high quality goods at lower prices hence effectively edging out the competitors. Such is the case with the China’s Hisense which has disrupted the international market and proved to be a topnotch competitor (Peng, 2004).
The production of plane television panels is moving to dissimilar global localities due to globalization of trade. Various economies are assimilating founded on the surge in commerce, quick know-how development and amplified monetary movements. There is free movement of resources, knowledge and technology. New locations are also offering better opportunities by reducing the production costs.
Conclusion
Globalization tends to generate both victors and failures. The winners in this regard are the companies that openly and quickly embrace changes such as technology. The winners see the opportunities and seize them. They are able to harness opportunities and make the best out of them ahead of competitors. The losers are companies that are rigid and inflexible to adapt to the changing times. They are effectively phased-out by companies that spot the advantages of globalization (Tsui, 2007).
This would affect the economy of the US. The cost of production in the US is higher compared to other production locations such as China and Mexico. The price of the panels would be higher. On the other hand, such a move would benefit the population since those willing to manufacture the panels in the US would create employment opportunities. However, majority of the consumers may not afford the panels hence the manufacturers may shift the manufacturing plants to other locations and sell the panels to other markets. It would not be a good thing for the US economy.
Reason for selecting topic (Globalization)
The increasingly competitive global market is rapidly being affected by the advancements in technology. Technology has played a major role in closing the physical boundaries of economies by enabling real-time communication. Modern businesses that do not embrace technology are bound to fail since they will not be competitive. Globalization enables businesses to gain competitive advantage hence the need to explore globalization.
References
Ciravegna, L., Fitzgerald, R. & Kundu, S. (2013). Introduction to emerging markets and the new international economy. Web.
Kirkman, B. & Law, S. (2005). International management research in AMJ: Our past, present, and future, Academy of Management Journal, 48(2), 377–386.
Peng, W. (2004). Identifying the big question in international business research. Journal of International Business Studies, 35(1), 99‐108.
Philips, A. (2013). International business, competing in the global marketplace. New York, NY: McGraw-Hill Higher Education.
Tsui, S. (2007). From homogenization to pluralism: International management research in the Academy and beyond. Academy of Management Journal 50(6), 1353‐1364.