Academic Research and Writing

Topic: Globalization facilitates the businesses through high competition, rise in technology and
greater employment.

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Table of Contents
Introduction:......................................................................................................................................3
1. High Competition:.........................................................................................................................3
2. A Rise in Technology:...................................................................................................................4
3. Employment Opportunity:..............................................................................................................4
Conclusion:.......................................................................................................................................5
References:.......................................................................................................................................6

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Introduction:
Globalization is hot topic in this modern business area for its long-term benefits and impacts on the
business functions. It enlarges the business area by crossing the national border and
boundary(Badenhorst et al., 2006). The emerging benefits of globalization are high employment,
increased productivity, high industrial dispersion, large sale opportunity, large customers and large
markets(Barringer and Ireland, 2010). The negative aspects of globalization on the businesses are
intense competition, linguistic challenges from various ethnic cultures, international political instability,
different natural destructions, increased labor costs, increased taxes of foreign nations and high export
and import charges(DesJardins, 2011). These can be minimized by taking effective measures those
have been summarized in the report. This report explored the importance and negative issues of
globalization with critical reasoning for supporting the national and global business environment. The
report also found some recommendations in conclusion on how to overcome the challenges those are
created by globalization. The report also has provided the arguments behind each effect of globalization
by the evidence and proper examples from different researches and articles. The conclusion of the
report includes the summary of arguments behind the possible effects and future predictions for
removing the obstacles in business functions in global and national regions.

1. High Competition:
Globalization is defined as the process of enhancing business functions and broadening the business
locations by transferring the productions, machineries, methods and systems and other functions(Hill,
2008). The aim of globalization is to create equality and balance between the world income and wealth
by transferring the capital from one country to another country through the investment. A researcher
considered competition as positive in the sense of gaining competitive advantage. In that situation, the
companies want to produce products and services in low cost that increase the revenue(Lesourd and
Schillizzi, 2002). This trend helps the entities to increase quality, low cost operation, increase
economies of scale and high customer service for satisfaction purpose. In this situation, brands and
companies like to improve services to customers and improve standards and other competitive
advantages that ensure the sustainability over other foreign competitors and national companies. In
international businesses, the companies are conscious about high competition and hence they create
better services to new consumers. In this area, they also treat and consider the staffs as a resource of the
entities rather than only input materials to satisfy them for not leaving the jobs and engage in other
competitors’ establishment. Competition is regarded as the challenging issue due to globalization also.
Conversely, another researcher considered it as a negative side of globalization for the business entity
as the area of businesses have been enlarged globally where many foreign and home countries' brands
available. By this way, new brands in new areas face competition with these global brands that
decreases the sales(Kaplan et al., 2001). So the rebuttal logic behind this though there are negative
sides of globalization but these are removable by the benefits and advantages those are created by high
competition in the markets. For increased competition, the companies are now conscious quality
services and products that satisfy the consumer demands and as a result the sales revenue increased
over its competitors. For example, in China companies enjoy low cost production and offers products at
low price even though competition is high than other countries. Due to globalization companies can
offer low price in many countries for its cheap labor and can face high production cost in other
countries and face competition.

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2. A Rise in Technology:
Another researcher has discussed in his article the rise of technology in this modern trend of businesses.
He explained that most of the global and national firms have taken the opportunity of different
technologies for exploiting the business functions in designing, researching and marketing the goods
and services(Madura, 2001). Technological usage in the productions ensures high quality goods and
services to the international consumers in more satisfied ways. He mentioned that globalization has
increased the technological usage, improvement and quality services also. Most of the companies
require updated technologies for facilitating the R&D and innovation. In addition, technologies in
communication like internet, mobiles, social media and mailing process positively facilitated the
prompt connection with remote areas and help to control and monitor the functions from one place to
different places very prompt way. Information technology through software based storage, and cloud
storage help the companies to share information instantly and facilitate the decisions making aspects of
the organizations. Alternatively, a researcher objected that technologies increased the cost of operation
that is more challenging for small and medium organizations. The technologies incur huge cost in
buying and installation. It is also challenging for user unfriendly and requiring additional training to the
existing human to create capabilities for operating the machineries(Mintz, 2002). These seminars and
training sessions require additional costs that increase the cost for the organizations. He explained that
due to complexities in modern technologies, most old employees want to leave the jobs permanently.
Due to excessive use of modern technology the need of labor decreased as machineries can work more
than traditional way where no need of extra employment. This trend increases the possibility of
unemployment in the economy. The rebuttal from the argument is that though globalization rise the
usage of technologies but it is challenging to adjust with costs. However the increased costs may be
minimized by the increased capabilities and qualities that increase the sales volume and satisfaction of
consumers. The example of increased technologies is the usage of e-commerce for selling and
marketing that touches the customers from international locations. Another example of negative
influence of technologies due to globalization is increased operational cost that decreases the revenue
and increases the price than competitors.

3. Employment Opportunity:
High employment is the positive impact of globalization on the businesses. The industrial transfers
from one country to another country are possible due to globalization as this lowered the entry criteria
in many countries because of many business collaboration and business unity(Needle, 2010). The
outsourcing operation is blessed due to globalization in accounting, labor, marketing and input
materials(Noe et al., 2003). The companies can outsource the accounting functions in developing
nations that increases the employment opportunity in these countries as a result it helps to grow the
economy surely. By the business functions transfers from home country to host country, there is a
possibility to hire new staffs for completing the functions of host companies. Offshoring is also created
by globalization that helps the companies to establish business branch and ventures in another location
for full productions and marketing functions. This is possible for getting skilled and qualified
employees from different cultures and ethnic groups who are famous for distinctive qualities and
innovative ideas. For example, most of the companies have transferred their production units in China,
where the people have gained the increased employment as a results it have raised their economy now.
Another researcher has argued that, globalization increases the possibility of job insecurity in
developed countries than developing nations. He stated that by the outsourcing operations, the
companies’ transfers of the production functions, accounting functions and marketing functions in the
growing economies due to cheap labor and cheat cost of inputs that decreases the employment

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opportunity in rich countries(Teece, 2010). This trend has been developed in the companies for cheap
rate of labor in emerging nations that creates possibility of losing the employment of developed nations.
However, if though there is job insecurity but this can be beneficial for the overall economy and
industries for getting the advantage of cheap labor cost and economy is developed by the greater
employment. For example, huge employment opportunity has been created in China, India and other
south Asian countries in last two decades. But economic recessions have been faced by many
developed countries in last decade due to outsourcing and low employment.

Conclusion:
From the study it can be concluded that even though the effects of globalization are challenging for the
small and medium organizations but it creates benefits and advantages for large size entities in global
locations. Globalization enhances the capabilities of using high technologies in operations due to
availability and functional requirements but it is challenging to cope up with increased installation costs
for small enterprises which have low capital and abilities. The arguments can be summarized in a way
that in case of competition, the company should increase quality to gain advantages over competitors.
In case of employment insecurity, the company should use quota process to hire employees from both
host and home countries so that job insecurity can be minimized in developed nations. In case of high
technology, the company should ensure economies of scale in productions and provide appropriate
trainings to the old aged people of the companies to create ability to use of the new machineries.

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References:
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