Inter. Issues - Essay Example

Inter. Issues Number Introduction In the contemporary market, globalization has increased business opportunities and at the same time pilling more business risks. The international market has been turned into one village market intensifying the level of competition in the market. Consequently, many corporations have been forced to adopt strategies that can enable them to take advantage of the benefits of globalization and mitigate the resultant business risks. This paper explores the impacts of globalization on Boston Scientific Corporation.

The Impact of Globalization on Boston Scientific Corporation Boston Scientific Company is a multinational enterprise that develops, produces and markets medical apparatus utilized in various interventional medical fields. With the advancement in technology and increasing globalization, there has been intense competition in both local and international markets. Globalization has facilitated international trade in many ways, which eventually called for the need to regulate trade across nations.

The General Agreement on Tariffs and Trade (GATT) refers to a multilateral accord that was established in 1947 to regulate international trade. It primary objective was to reduce tariffs as well as other international trade obstacles for mutual benefits for trading nations. The elimination of tariffs and other trade obstacles enables multinational companies to access markets easily (Baker et al., 1999). Consequently, this has enabled Boston Scientific to access different markets across the world.

At the same time, the ease of entry has enabled competitors to encroach the company’s market thus increasing the level of competition. The predecessor of GATT, World Trade Organization (WTO) was established in 1995. WTO is an influential institution for reducing trade barriers and opening markets for multinational enterprises (Gitman & McDaniel, 2009). WTO has worked towards global trade liberalization. The WTO has also increased international trade level thereby increasing competition in the market.

According to(), Boston Scientific has experienced reduced selling prices for some of its products. Competitive pricing by new market entrants have adversely affected the company’s pricing of some of its products. WTO has greatly impacted the company by increasing trade opportunity for the company but at the same time increasing competition, which consequently leads to reduced market share of the company. The WTO together with the International Monetary Fund (IMF), are responsible for the fundamental rules that direct fiscal and trade interdependence among countries.

As such, these institutions determine where multinational corporations like Boston Scientific invest through market expansion (Krajewski, 2003). The industry in which Boston Scientific operates is defined by robust research and development and swift technological advancements. Globalization has resulted into dynamic customer needs and corporations have been compelled to produce products that meet current needs of the market. The emergence of new products of new market entrants and also the offering of enhanced products by rival companies renders Boston’s products outmoded.

This has the potential to make the company to loss its competitive edge and consequently register poor operation in the global market. One of the main ways in which the company can respond to the threats of globalization is to invest heavily in research and development and obtain scientifically advanced technologies, which are cost-effective. The company should also focus on developing new products and also improving existing ones to reduce the chances of its products becoming obsolete in the market.

It can seek to patent and protect its products to prevent competitors from duplicating the ideas of the company. Lastly, the company should establish strong and effective competitive intelligence to keep it abreast with what the competitors are doing. Assuming competitors’ moves can be lethal to any organization (Quelch, 2006). To conclude, globalization has impacted both positively and adversely on Boston Scientific Corporation. References Baker, D., Epstein, G.A. & Pollin, R. (1999). Globalization and progressive economic policy.

Cambridge: Cambridge University Press. Gitman, L.J. & McDaniel, C.D. (2009).The future of business: the essentials. Mason, OH: South-Western Cenage Learning. Krajewski, M. (2003). National regulation and trade liberalization in services: the legal impact of the General Agreement on Trade in Services (GATS) on national regulatory autonomy. The Hague: Kluwer Law International. Quelch, J.A. (2006). Readings in modern marketing. Hong Kong: Chinese University Press.