Technology has been embraced by most corporations as a result of globalized markets. The aspect of value addition has resulted in an urgent need for adequate market researchers to satisfy the ever changing consumer’s needs fully (Klein, 2000). According to (Klein, 2000), most of the corporations in the modern era have invested a lot of money in branding and brand establishment through advertisements and sponsorships. In the current dispensation, product branding and brand development has taken centre stage outshining the actual product development. Globalization has enabled most of production to migrate from mass production under Fordism to customized and value added products in the current post Fordism era in order to satisfy the growing customer base. According to Stiglitz (2003), relocation of multinational companies to developing countries has increased pressure on the labour market resulting to massive restructuring of the firms in the developed countries.
Availability of the outsourced labour has increased on their profitability as documented by Rodrick (1997). This has resulted in the creation of employment opportunities to the people in the country these firms are established. Most established multinational firms have found it cost-effective to relocate to developing countries to establish plants there in order to cut the cost of labour. Rodrik (1997) argues that the introduction of non-tariff barriers has led to accelerated economic growth in the developing countries because of availability of markets for their products. This move has increased industrial developments within member countries. Several trade agreements enabling entry of non-tariff barriers for products from various sources within the globe have been accented opening a new page in the global trade. The global integration foreseen by Theodore in the 1980s has provided a myriad of opportunities to organizations in the modern era.Ī report by the World Trade Organization (WTO) in 2003 indicated that globalization has resulted in increased productivity due to the increasing international trade. This prediction has been realized in the 21 st century whereby most of the firms develop products with a global perspective. 2.0 Literature reviewĪccording to Theodore Levitt (1983), the difference in preference in business and consumer patterns would eventually disappear ushering in an era of global production of goods and services. However, the study will seek to streamline on a number of positive and negative effects of globalization on an organization and leave room for further study on the topic. The entire issue of globalization is very broad and is therefore impossible to comprehensively exhaust it. This research will seek to identify several negative and positive effects of globalization in the context of an organization. There have been reported cases of loss of culture, insecurity and unemployment among many other challenges. Globalization has brought about a sea of opportunities for organizations to exploit, but has also brought about several challenges too. Therefore, this report is very appropriate because it seeks to expand the study and focus on individual firms. The research question the report will be seeking to explore is: – what are the effects of globalization to an organization?Ĭonsidering the numerous international changes that have taken place because of globalization in political and economic front, it is very paramount to establish the response of various organizations to the same changes. The process of globalization has greatly influenced the normal business and organization’s operations with several organizations being forced to adjust to several changes in order to remain relevant and profitable in the current global markets. In the modern day, people are able to network and conduct business across the globe from the comfort of their homes. The continued growth in mobile telephony has also provided convenience in the globalization process through allowing global routing of voice and data. The development of global monetary systems such as PayPal and Visa has accelerated economic integration among several countries in the world. The invention of the internet has led to the massive international integration promoting trade and various political interests. The process of globalization in the modern day has been caused by the advancement in transport, infrastructure and telecommunication sector. Globalization is the process of international integration resulting from continuous interchange of ideas, cultural aspects, products and other world views.
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