The paper "Globalisation Strategy for Companies " is a great example of management coursework. The process of globalisation typically is an inescapable phenomenon in the history of man which has brought the world closer since the era of early trade through the exchange of commodities, culture, and information (Rugman and Verbeke, 2004). Globalization has changed how businesses operate. This globalization has come in the form of the transfer of technology, the emergence of Multinational corporations, and an increase in foreign trade among others. As globalization has led to firms and people expand their access to markets, resources, and products, it has also led to both positive and negative effects.
During the last years, several barriers to international trade have been broken and a new wave of companies has pursued global strategies with an aim of gaining competitive advantage (Meghana, Beck and Demirguc-Kunt, 2003). Nevertheless, globalization does not work for all companies. Some industries benefit more than others and other countries have a higher competitive advantage than others. Globalisation strategy for companies is therefore not an easy task for companies. Successful global strategies are created when executives and managers first understand the dynamic of a foreign market and the nature of the global industry’ s competition (Meghana, Beck and Demirguc-Kunt, 2003). This paper will discuss the statement, “ companies are under increasing pressure to globalise their operations” .
It will first describe what globalization is and will highlight the advantages and disadvantages of globalisation on companies. The paper will also highlight using appropriate frameworks why companies are under pressure to globalize. Globalization can be termed as the changes that have taken place across the globe which encompass a shift from self-contained nations to an integrated world (Banerjee, Carter and Clegg, 2009).
Specifically, globalisation is therefore defined as the practice of integration of the globe into one market that offers several opportunities to many people and businesses with the removal of the trade barriers that existed among countries. Globalization in business refers to the change from operating in a single country to operating in multiple countries which are made possible by minimal trade barriers. Globalization has both benefits and limitations and they will always be here to stay (Hill, 2007).
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