Question

provide at least three key reasons why you believe that globalization potentially applies to all organizations.

Answer 1

In the era of the Internet revolution, it is widely observed that intense competition is one of the most significant motivator for the growth in globalization on the part of any Organization. The Organizations also go global due to the cheaper cost of production at the emerging markets rather than continuing to operate in a saturated market with no potentialities of growth and income. This saturation is in turn giving a want to expand geographically to the markets where the demand potential still exists. Also, in a case where the Organization is under extreme pressure from the competitors, it only makes more sense to resort for other emerging markets globally and hence it is a significant factor driving globalization. If we observe all these reasons, in general, it is noted that to all Organizations, survival is itself a key challenge in the ever-changing global environment. So unless one chooses to remain niche in the business, for the rest of the Organizations, Globalization is aptly applied to. Various other reasons why I believe that Globalization could be potentially applied to all Organizations, would be as under:

• Interest of the Companies to expand its geographical horizon owing to the motive of expansion of shareholder’s wealth, more sales and thereby minting more profits.
• It is believed that Globalization helps in doing away with all sort of Free Trade barriers such as taxes or subsidies.
• The economic growth, employment opportunities and healthy competition are also some other factors driving Globalization.
• Companies may like to take an advantage of International currency fluctuations thereby helping those countries to penetrate deep into the other global markets.
• Certain countries also believe in improving the conditions of democracy and human rights in other countries due to the blend of foreign capital and technology with such countries.
• The world has become a Global village with foreign products being accessible at ease only because the countries have thrown open their boundaries thanks to their Government policies. This has in turn given rise to Globalization.
• View of the federal Government of various countries for a positive cultural exchange among the countries.
• Governments of various countries intend to undertake the summits to bring about a common platform to discuss the ecological issues of each other which are possible by Globalization, apart from many other ways.