Sociology

Explain and discuss how Globalisation has affected the growth of international business

In any case, it has been proved that globalisation can highly affect the growth of international business but the process used for the achievement of this target is not standardized. The involvement of globalisation in the growth of international business has been highlighted in the literature and the empirical research. however, academic researchers have employed in order to justify the power of globalisation on international business. In accordance with Dunning (1999), globalisation offers to businesses the chance to expand their activities in the global market, either physically or through the Internet. Reference is made, for example, to the case of the communications industry where globalisation has given ‘enormous opportunities for expansion and high profits for the industry’s major firms’ (Dunning 141). Another example used in the study of Dunning for showing the relationship between globalisation and international business is that of the financial services firm Merrill Lynch, a firm ‘operating in about 31 countries’ (Dunning 141). In accordance with the view of Dunning, as presented above, globalisation can support the development of businesses internationally. however, such benefit is expected to be available only to large firms, which have the resources necessary for enjoying the benefits of globalisation. Small and medium sizes firms would face many difficulties in entering the global market. moreover, the firms of this size could not compete international firms. In other words, globalisation could support the growth of businesses internationally, but such prospects would involve mostly in firms of large size – as also explained in the study of Dunning (1999) above. A different perspective of globalisation is highlighted in the study of Worthington amp. Britton (2009). in accordance with the above study, the international market is not related only to international businesses. it is suggested that ‘businesses of all sizes should be aware of their international context’ (Worthington amp. Britton 45). Moreover, it is made clear that one of the key benefits that globalisation can offer to businesses internationally is the provision of an extended market for their products/ services. In other words, for the above researcher, the concept of globalisation reflects the existence of a market, which is geographically expanded as possible – covering the markets of all countries worldwide. In the study of Wall and Minocha (2009) emphasis is given on the use of globalisation for achieving benefits in a wide area of activities/ areas, including trade, politics and sociology. Regarding specifically trade, globalization is expected to have specific benefits: improvement of the quality and the level of trade developed among states and organizations internationally (Wall amp. Minocha 2009). moreover, globalisation could help toward the ‘increase of the international capital flows’ (Wall and Minocha 2009, p. 14). Also, globalization could help towards the increase of ‘capital flows worldwide’ It is expected that businesses, which operate globally, would be also strongly benefited from globalisation. However, an important implication of the view of Wall amp. Minocha (2009) on globalisation would be the following one: not all firms of large size are able to compete their rivals. the lack of effective management would not allow firms of small/ medium size to get access to the international

Back To Top