Globalization & Contemporary Issues in Business Management

chandimaharishchandra@gmail.com

Contents

Introduction..........................................................................................................................1

Theoretical Approach..........................................................................................................2

The KOF and the Dimensions of the Globalization..........................................................4

The Concept Of "Too Big to Fail"......................................................................................5

The Impact of Globalization & Contemporary Issues on Business in Developed and

OECD Countries..................................................................................................................6

The Impact of Globalization & Contemporary Issues on Developing Nations..............7

Internal Political Situation and Leadership to Overcome the Challenges......................9

"A Healthy Economy Should Be Designed to Thrive, Not Grow."...............................10

The World Order and Globalization & Contemporary Issues in Business World......11

Conclusion...........................................................................................................................12

References...............................................................................................................................13

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Introduction
Globalization refers to the process of increased interconnectedness and interdependence
among countries, businesses, and individuals around the world. This phenomenon has
transformed how businesses operate and has brought about many contemporary issues in
business management.

One of the most significant impacts of globalization on business management is increased

competition. Globalization has opened up new business markets, but it has also increased
competition from domestic and international competitors. Businesses must adapt to these
changes to remain competitive and maintain their market position.

Another critical issue is the rise of digital technology and the internet, which has transformed
how businesses operate. Companies must now have an online presence to reach customers
and stay competitive. However, this has led to the emergence of e-commerce and digital
marketing, which are now essential components of business strategy.

Environmental sustainability is another contemporary issue in business management. As the

world becomes more interconnected, businesses must consider their environmental impact
and take steps to reduce their carbon footprint. Consumers are increasingly concerned about
sustainability, and companies that ignore these concerns risk losing customers and damaging
their reputations.

Finally, social responsibility is a critical issue in business management. Consumers are

increasingly aware of the social impact of their products and services. Companies must
demonstrate their commitment to social responsibility to maintain their reputation and attract
customers. Moreover, this includes ethical sourcing, fair labour practices, and diversity and
inclusion.

In conclusion, globalization has brought about many contemporary issues in business

management, including increased competition, digital technology, environmental
sustainability, and social responsibility. Businesses must adapt to these changes to remain
competitive and maintain their market position (Delios, Perchthold, & Capri, 2021).

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Theoretical Approach
Prospectives, liberalism, realism, Marxism, and constructivism are different schools of
thought in political theory that can be applied to theoretical approaches to management and
economics, as well as spatial growth. However, the perspective emphasizes the importance of
uncertainty and risk in decision-making. A prospective might argue that theoretical
approaches to management and economics should be flexible and adaptable to account for
changing market conditions and unexpected events. They might also argue that spatial growth
should be cautiously approached, given the unpredictable nature of future developments.

This perspective emphasizes the importance of individual liberty and free markets. A liberal
might argue that theoretical approaches to management and economics should prioritize the
interests of individuals and businesses over the state's interests. They might also argue that
spatial growth should be driven by market forces rather than government intervention.

This perspective emphasizes the importance of power and self-interest in international

relations. A realist might argue that theoretical approaches to management and economics
should prioritize the state's interests. That spatial growth should be approached strategically
to gain a competitive advantage over other states.

This perspective emphasizes the importance of economic and social equality. A Marxist
might argue that theoretical approaches to management and economics should prioritize the
interests of workers and marginalized groups and that spatial growth should be approached to
reduce economic inequality and promote social justice.

The importance of social norms and cultural values in shaping political outcomes. A
constructivist might argue that theoretical approaches to management and economics should
be informed by the social and cultural context in which they are applied. That spatial growth
should be approached in a way that respects local customs and traditions.

Overall, each of these perspectives offers a different way of approaching the topic of
theoretical approaches to management and economics, as well as spatial growth. The choice
of perspective will depend on the values and goals of the individual or group applying the
approach.

The impact of liberalism in action can be seen in various areas, including economics, politics,
and social policy. Liberalism emphasizes the importance of free markets and individual
liberty in economic policy. This has led to policies prioritizing deregulation, privatization,
and free trade. For example, liberal economic policies in the United States have led to the
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growth of the tech industry and the financialization of the economy. Liberalism emphasizes
the importance of democracy and individual rights in political policy. This has led to policies
that promote civil liberties, free speech, and minority rights. For example, liberal political
policies in the United States have led to the legalization of same-sex marriage and the
protection of voting rights for marginalized groups (Lynch, 2008).

Liberalism emphasizes the importance of social welfare and equality in social policy. This
has led to policies that support public education, healthcare, and social security. For example,
liberal social policies in the United States have led to the creation of Medicare and Medicaid
and the expansion of the welfare state. However, this has led to policies that promote
multilateralism and free trade agreements. For example, liberal international policies in the
United States have created the North American Free Trade Agreement (NAFTA) and the
Trans-Pacific Partnership (TPP) (Cimino-Isaacs, & Schott, (Eds.). (2016).

Overall, liberalism as a theory has had a significant impact on policy and action in a variety
of areas. While there are critics who argue that liberal policies have led to economic
inequality and political polarization, proponents of liberalism argue that it has helped to
create greater economic prosperity, political freedom, and social welfare for millions of
people around the world.

The KOF and the Dimensions of the Globalization

The KOF Globalization Index is a composite index that measures the economic, social, and
political dimensions of globalization. The index is based on various indicators, including
trade flows, capital flows, information flows, cultural proximity, and international
organizations. Researchers and policymakers widely use the KOF Index to study the impact
of globalization on economic growth, inequality, and other outcomes.

The KOF Globalization Index is related to contemporary issues in business management in

several ways. First, globalization has significantly impacted business management, as
companies have had to adapt to changing global markets and supply chains. The KOF
Globalization Index can help researchers and policymakers understand how globalization
affects business management in different regions of the world.

Second, the KOF Globalization Index can help businesses and policymakers identify
potential opportunities and challenges associated with globalization. For example, the index
can help businesses identify countries becoming more integrated into the global economy or
regions experiencing rapid economic growth. Policymakers can also use the index to identify

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areas where they may need to invest in infrastructure, education, or other policies to promote
economic growth and development.

Overall, the KOF Globalization Index is an essential tool for understanding the impact of
globalization on contemporary issues in business management and can help businesses and
policymakers make informed decisions about navigating an increasingly globalized world.
The KOF Globalization Index is a widely used composite index that measures globalisation's
economic, social, and political dimensions. The index is based on various indicators,
including trade flows, capital flows, information flows, cultural proximity, and international
organizations (Gygli, Haelg, Potrafke, & Sturm, 2019).

The KOF Globalization Index is calculated on a scale of 1 to 100, with higher values
indicating more significant levels of globalization. The index is broken down into three sub-
indices: economic globalization, social globalization, and political globalization.

Regarding regional breakdowns, the KOF Globalization Index shows that the most globalized
regions in the world are North America and Europe, Asia and Oceania, and Africa and South
America. However, there is significant variation within these regions, with some countries in
Africa and South America ranking highly regarding certain aspects of globalization, such as
cultural proximity or information flows.

Overall, the KOF Globalization Index provides a valuable tool for understanding the levels
and dimensions of globalization in different countries and regions. This information can be
helpful for businesses, policymakers, and researchers interested in globalisation's impact on
contemporary business management issues (Troto, 2021).

The Concept Of "Too Big to Fail"

The concept of "too big to fail" is a phenomenon in the global finance industry that has
significant implications for globalization and contemporary issues in business management.
The term refers to the idea that certain financial institutions, such as large banks or insurance
companies, are so large and interconnected with the global financial system that their failure
could have catastrophic consequences for the entire global economy.

The "too big to fail" problem became particularly evident during the global financial crisis of
2008 when several large banks and financial institutions were on the verge of collapse.
Governments and central banks worldwide provided massive bailouts to these institutions to
prevent their failure and stabilize the global financial system.

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The "too big to fail" problem has necessary implications for globalization and contemporary
issues in business management. First, it highlights the interconnectedness of the global
financial system and the potential risks associated with concentrated economic power. This
has led to increased calls for greater regulation of financial institutions, including efforts to
limit the size and complexity of large banks and other financial institutions.

Second, the "too big to fail" problem significantly affects managing large financial
institutions. These institutions are under increased pressure to manage risk, ensure financial
stability, and demonstrate accountability and transparency to regulators, shareholders, and
other stakeholders. This has led to changes in management practices, including greater
emphasis on risk management, enhanced regulatory compliance, and increased transparency
(Moosa, 2010).

Overall, the "too big to fail" problem is essential for understanding globalization's impact and
contemporary issues in business management. It highlights the risks and challenges
associated with concentrated economic power. It underscores the need for effective regulation
and management practices to ensure financial stability and prevent catastrophic consequences
for the global economy (Berndt, Duffie, & Zhu, 2022).

The Impact of Globalization & Contemporary Issues on Business in Developed and

OECD Countries
Globalization and contemporary issues in business management have had significant impacts
on developed countries and those in the Organization for Economic Cooperation and
Development (OECD). Globalization has opened up new business markets, but it has also
increased competition from domestic and international competitors. According to data from
the World Bank, the value of world merchandise exports increased from $5.8 trillion in 2000
to $19.5 trillion in 2020. This has increased pressure on businesses in developed and OECD
countries to remain competitive. However, digital technology and the internet have
transformed how businesses operate. According to data from Statista, global e-commerce
sales are expected to reach $4.9 trillion in 2021, up from $2.3 trillion in 2017. This has led to
new business models, such as e-commerce and digital marketing, significantly impacting
developed and OECD countries.

As the world becomes more interconnected, businesses in developed and OECD countries
must consider their impact on the environment. According to the International Energy
Agency data, OECD countries accounted for 40% of global energy-related CO2 emissions in
2019. This has increased pressure on businesses to reduce their carbon footprint and adopt

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sustainable practices. Consumers in developed and OECD countries are increasingly aware of
the social impact of the products and services they purchase. According to data from Nielsen,
66% of consumers in North America are willing to pay more for products and services that
come from companies committed to positive social and environmental impact. This has
increased pressure on businesses to demonstrate their commitment to social responsibility.

Therefore, globalization and contemporary business management issues have significantly

impacted developed and OECD countries. Businesses in these countries must adapt to these
changes to remain competitive and maintain their market position. This includes adopting
sustainable practices, embracing digital technology, and demonstrating a commitment to
social responsibility (Karpunina, et. al., 2022).

The Impact of Globalization & Contemporary Issues on Developing Nations

Globalization and contemporary issues in business management have had both positive and
negative impacts on developing countries. While increased competition has put pressure on
businesses in developed and OECD countries, it has also created new opportunities for
businesses in developing countries. According to World Bank data, exports from developing
countries increased from $2.2 trillion in 2000 to $8.4 trillion in 2020. This has helped to
boost economic growth and create jobs in many developing countries. In the same way, the
rise of digital technology and the internet has had a transformative impact on developing
countries. According to data from the International Telecommunication Union, internet users
in developing countries increased from 974 million in 2005 to 4.5 billion in 2020. This has
helped to create new opportunities for businesses and entrepreneurs in developing countries,
particularly in areas such as e-commerce and digital services.

Developing countries often face significant environmental challenges, including pollution,

deforestation, and climate change. However, they also have the potential to be leaders in
sustainable development. For example, many developing countries invest in renewable
energy sources such as solar and wind power. According to data from the International
Renewable Energy Agency, developing countries accounted for two-thirds of global
renewable energy capacity additions in 2020. Businesses in developing countries increasingly
recognize the importance of social responsibility. This includes fair labour practices, gender
equality, and community development. According to data from the World Bank, the
percentage of businesses in developing countries that report implementing social
responsibility initiatives increased from 36% in 2010 to 52% in 2019 (Jahanger, Yang,
Huang, Murshed, Usman, & Radulescu, 2022).

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In conclusion, globalization and contemporary business management issues have positively
and negatively impacted developing countries. While they have created new opportunities for
economic growth and innovation, they have also presented significant challenges, particularly
in environmental sustainability and social responsibility. Developing countries must navigate
these challenges to ensure that they can achieve sustainable and inclusive economic growth.

Asia has experienced significant growth in international trade over the past few decades.
According to data from the World Trade Organization, Asia accounted for 36.7% of world
merchandise exports in 2020. This has created new business opportunities in Asia but has
also increased competition from domestic and international competitors. Asia is home to
some of the world's largest and most innovative tech companies, including Alibaba, Tencent,
and Samsung. The rise of digital technology has transformed many sectors in Asia, from
finance and logistics to e-commerce and entertainment. According to data from Statista, the
Asia-Pacific region is expected to account for more than half of all global e-commerce sales
in 2021. Many Asian countries face significant environmental challenges, including air
pollution, deforestation, and water scarcity. However, they are also investing heavily in
renewable energy sources. According to data from the International Renewable Energy
Agency, Asia, they accounted for more than 60% of global renewable energy capacity
additions in 2020. Many Asian businesses are increasingly recognizing the importance of
social responsibility. According to a survey by Corporate Knights, a Canadian research firm,
eight of the world's top 10 most sustainable corporations in 2021 were based in Asia. South
Asia has also experienced significant growth in international trade. According to data from
the World Bank, the value of merchandise exports from South Asia increased from $93
billion in 2000 to $406 billion in 2020. This has created new business opportunities in the
region and increased competition (Zhao, Zhang, Alharthi, & Zafar, 2022).

South Asia is home to many tech startups and digital entrepreneurs. According to data from
the Global Entrepreneurship Monitor, South Asia has the world's highest rate of early-stage
entrepreneurial activity. This has helped to drive innovation and economic growth in the
region. Many countries in South Asia face significant environmental challenges, including air
and water pollution, deforestation, and climate change. However, there are also efforts to
promote sustainable development, such as India's ambitious plan to generate 175 GW of
renewable energy by 2022. Many businesses in South Asia recognize social responsibility's
importance, particularly in areas such as fair labour practices and gender equality. For

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example, the garment industry in Bangladesh has made significant progress in improving
working conditions.

East Asia has been a significant driver of global economic growth over the past few decades.
According to data from the World Bank, the value of merchandise exports from East Asia
increased from $2.4 trillion in 2000 to $7.2 trillion in 2020. This has created new business
opportunities in the region and increased competition. East Asia is home to some of the
world's most innovative and influential tech companies, including Alibaba, Tencent, and
Samsung. The region is also a leader in 5G mobile networks and artificial intelligence.
According to data from the International Data Corporation, China alone is expected to spend
$150 billion on digital transformation in 2021. Many countries in East Asia face significant
environmental challenges, including air pollution and climate change. However, they are also
progressing in areas such as renewable energy and sustainable transportation. For example,
China is the world's largest market for electric vehicles, and Japan is a leader in developing
hydrogen fuel cell technology. Provides a framework for analysis: Theoretical approaches
provide a framework for analysing complex business and economic problems, which can help
managers and economists to make more informed decisions.

Africa remains one of the poorest regions in the world and many of them argues that aid has
created a dependency culture in Africa, where governments and individuals rely on external
funding sources rather than creating their own economic opportunities.

Therefore, Africa should focus on developing its internal economic infrastructure. She argues
that African countries should focus on creating a business-friendly environment, reducing
corruption, and investing in infrastructure such as roads, ports, and telecommunications
(Zhang, Khan, Dagar, Saeed, & Zafar, 2022).

Internal Political Situation and Leadership to Overcome the Challenges

The internal political situation and leadership can significantly impact the success of
theoretical approaches to management, economics, and spatial growth. A stable political
environment can create a favourable environment for business and economic growth, which
supports theoretical approaches to management and economics. Stable political environments
can also create a stable spatial growth and development environment. The political leadership
of a country can influence the economic policies implemented, which can impact the success
of theoretical approaches to management and economics. Policies supporting business growth
and economic development can support theoretical approaches, while policies restricting

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growth and development can hinder these approaches. The political leadership of a country
can also influence investment in education, which can impact the success of theoretical
approaches to management and economics. Investment in education can create a skilled
workforce capable of effectively implementing theoretical approaches. The political
leadership of a country can also influence infrastructure development, which is essential for
supporting spatial growth and development. Investment in infrastructure can create the
physical environment needed to support spatial growth and development. Corruption can be a
significant obstacle to the success of theoretical management, economics, and spatial growth
approaches. Political leadership can influence a country's corruption level, which can impact
the success of these approaches. High levels of corruption can undermine the effectiveness of
theoretical approaches and hinder economic growth and spatial development.

In summary, the internal political situation and leadership can be crucial in the success of
theoretical approaches to management, economics, and spatial growth. Political stability,
economic policies, investment in education, infrastructure development, and corruption are
some of how they can impact these topics (Mattingly, 2022).

"A Healthy Economy Should Be Designed to Thrive, Not Grow."

As per the new economic model called the "doughnut economy." This model is based on two
fundamental concepts. The first concept is the "social foundation," which refers to the basic
needs of human beings, such as access to food, water, and healthcare. The second concept is
the "ecological ceiling," which refers to the planet's environmental limits, such as the
capacity to absorb carbon emissions or the availability of natural resources.

The "doughnut economy" model is designed to ensure that human needs are met within the
limits of the planet's resources. Raworth suggests that this can be achieved by rethinking our
economic systems and policies and prioritizing the well-being of people and the planet over
perpetual growth.

Further, the model explains the relevance to contemporary issues in business management, as
it challenges traditional economic models and suggests alternative approaches to addressing
social and environmental issues. Raworth's ideas are particularly relevant for businesses that
operate in industries with significant environmental impacts, as they highlight the need to
consider environmental constraints in business decision-making.

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Overall, the conversation provides a thought-provoking perspective on the role of economics
in contemporary society and offers insights into potential solutions for addressing some of the
most pressing issues of our time.

However, "The Global Economy: Ten Years After" from the World Economic Forum
summarises the state of the global economy a decade after the global financial crisis. The
article suggests that while the global economy has recovered since the crisis, significant
challenges and risks still need to be addressed.

However, global economic growth has been uneven, with emerging markets outpacing
developed economies in recent years. However, the article also highlights concerns over
rising inequality, the potential for new financial crises, and the impact of new technologies on
employment and productivity.

In order to address these challenges, policymakers need to adopt a more holistic approach to
economic development that considers social and environmental factors in addition to
traditional economic indicators. The article also highlights the need for greater international
cooperation and collaboration to address global economic challenges.

Overall, the article provides a nuanced and thoughtful perspective on the current state of the
global economy and the challenges that need to be addressed to ensure sustainable and
inclusive economic growth (Rakhimova, 2022).

The World Order and Globalization & Contemporary Issues in Business World
The world order, whether it is unipolar, bipolar, or multipolar, can have a significant impact
on Globalization & Contemporary Issues in Business Management.

In a unipolar world, where one country or entity dominates the global economy, businesses
may need to navigate a regulatory environment that that dominant player heavily influences.
This can limit the opportunities available to businesses from other countries or regions and
create challenges for businesses that must be aligned with the interests of the dominant
player.

In a bipolar world with two dominant powers, businesses may need to operate in a more
complex geopolitical environment. This can create challenges for businesses that operate
across multiple regions, as they may need to navigate conflicting regulations and geopolitical
tensions.

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In a multipolar world with multiple centres of power, businesses may face a more diverse and
complex set of challenges. They may need to navigate different regulatory environments,
cultures, and economic systems and develop strategies tailored to specific regions or markets.

The world order can impact Globalization & Contemporary Issues in Business Management
by influencing the regulatory environment, geopolitical tensions, and business opportunities.
As a result, businesses need to be aware of the geopolitical landscape and adapt their
strategies accordingly to succeed in an ever-changing global economy (Sheng, 2022).

Conclusion
Globalization has transformed how businesses operate, leading to contemporary issues in
business management. Increased competition from domestic and international competitors is
a significant impact of globalization on business management. The rise of digital technology
and the internet has led to the emergence of e-commerce and digital marketing, which are
now essential components of business strategy. Environmental sustainability and social
responsibility are also critical issues in business management, as businesses must consider
their environmental impact and demonstrate their commitment to ethical sourcing, fair labour
practices, and diversity and inclusion. In terms of the global economy a decade after the
global financial crisis, the article suggests that while there has been a recovery, significant
challenges and risks still need to be addressed. Emerging markets have outpaced developed
economies, but there are concerns over rising inequality, potential new financial crises, and
the impact of new technologies on employment and productivity. Policymakers need to adopt
a more holistic approach to economic development that considers social and environmental
factors and traditional economic indicators. Greater international cooperation and
collaboration are also necessary to address global economic challenges and ensure
sustainable and inclusive economic growth in the future.

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Jahanger, A., Yang, B., Huang, W. C., Murshed, M., Usman, M., & Radulescu, M. (2022).
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