Question

What are the principle reasons for learning about international management? What are some positives and negatives of globalization for organizations?

Answer 1

Step 1: Principle reasons-
The management that oversees the regulation of operation in or with organizations in foreign countries is called International management. It might be done either through a multinational corporation or organization.
There are mainly three reasons for learning about international management are:
a). Interaction with people from different cultures- sometimes there are employees born in different countries due to which there is a need for knowing about international management for managers.
b). Need for job promotions- For promoting the chain of operations at larger corporations, there could be a job requirement of having knowledge related to international management.
c). Companies having overseas offices- If you have overseas corporations or offices then you need to have good knowledge of international management for managing them.
These reasons are important for a person to become successful in managing corporations or organizations established overseas.

Step 2: Globalisation of organization-
Positives:
i). Competition- Globalisation may increase competition in the organizations which might be related to the price or cost of product and service, target markets, an adaptation of technology, etc. Competition has compelled organizations to improve their standards and benefits for consumers which positively affects many people globally.
ii). Technology- One of the main tools of competition and quality of goods and services is technology. Due to globalization, the speed of technological transfer and improvement in the overall quality of technology has been improved.
iii). Employment- People from different countries are provided with jobs as a result of globalization and the concept of outsourcing has been created.

Negatives:
i). Prices- Prices generally fluctuate across the globe in different areas due to globalization. Business firms in developed counties have a force to lower their prices for products due to increasing competition.
ii). Job security- Nowadays the risk of job insecurity is increasing because of the outsourcing of jobs done by the firms to developing countries as a result of globalization, it resulted in lesser jobs in the developed counties. Organizations take the help of outsourcing to manufacture their products at a cheaper rate.