Question

Is Globalization in Decline or Not? What is the proper role for US based companies in their globalization efforts? Can US based companies afford to retreat from global markets? While competition in global markets has increased, and profitability has become difficult to maintain, can US based companies afford to retreat from their global footprint? Do you have any direct experience with this issue in your workplace that you could bring to the discussion?

Answer 1

Organizations today are no more restricted in doing business in the domestic circuit only, instead they are looking to create a global presence in the international market and therefore globalization has been quite a common and popular practice. Most of the US based companies are practicing this effort and are trying to penetrate the global markets and today we see various outlets of such organizations in many smaller countries and economically weak countries as well. The organizations adapt to the changing economy and are doing quite good because there are countries which are growing strong in economy like countries in Asia and Africa. I do not believe that globalization is in decline rather it is on the rise and an organization which has a global presence generally cannot retreat from the global market if they are making profit because then that will make the competition easy for its competitors.

Today the competition level is so high that organizations cannot afford to make a mistake because one mistake can cost the organization quite a lot and this will make life tough for the organization itself. The organization I work for has quite a global presence and is doing good in various countries. During the last year the performance of the organization was not as per the expectation and they planned to take off operations from various countries because they feel that the economically weak countries are affecting the business of the organization but it did not help because the competitors started doing good business in the same country as they did not have any strong competition left and it was like a cake walk for them and the my employer actually lost potential business to quite some extent.