GLOBAL addition political alliance shift and activities implemented

GLOBAL BUSINESS

 

The
nature of global business environment ensures that no matter how hard we work
to establish a stable and healthy organization, our company will keep on changing
dramatically far beyond our power of control. Globalisation is a process of
dealing and incorporating with people, organization and government of various
state/ nation operated by international trade and investment and supported by
information technology. It affects people, organization, their workforce and
customer, not just of common world but generally cultural and transactional
relationships which define word of our age and affect how we live,
communicate/connect to each other no matter where we are. There are four level
in the phase model of globalization and they are: Exporting, cooperative
contracts, strategic alliances and wholly owned affiliates.  The purpose of this essay is to understand the
word global business and Analyze all four stages in phase applying Australian
organization who appear at each step of the problem and their major strength
and weakness will be figure out and outlined1.

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In
simple language global business is an organization or company running business
across the world. World is dynamic and is changing constantly so, is the
business. Advance in technology leads to flowing of data and information in
addition political alliance shift and activities implemented by the global
institutes come up with vast change in global market. Therefore, who want to
understand global business landscape have to study all these aspect in order to
know global business and future trends clearly. For the reliable plan of higher
and sustainable growth of country it is important to being known of full
potential of the single market in order to overcome the economic shortage. As
In Europe antitrust policy help to support the single market and the EU
economic growth and examines challenges for the implementation of antitrust
policy caused by changes in the dynamic and complex economics environment, at
national and international position.  Global completion, imperative quality 2and free trade are
important factor that go with global business plus business landscape are the
major driven point that contribute creating great jobs and growth in
business/market. Whereas some other found it in different way, by testing two
normal international activities the law of semi globalization and the law of
distance by empirical meth ology It is found international market seldom go
beyond 30% Even though importance international business is continuing so, in
some degree world is semi globalized by it. And also assume that different
types of distance harm the growth of positive business activities.3

In
this globalised world, annual value of global trade in from of export and
import is expected to exceed $12 trillion. According to current data world
trade is continuously rising at rapid rate than the world productivity. Export
refers to sell the domestic goods and service to foreign countries. Globalisation
increases the annual value of global trade in the form of export and imports.
The reason for company supporting exports are Increase in sales and profits,
improving and enhancing domestic product, rise in global market share, Low per
unit cost Gain new knowledge and experience, Increase the life cycle of item whereas
the main risks with export are trade barrier, large legal, political and
cultural complexity and mostly high financial risk as it take more take to
develop extra market. Similarly,
the next phase in the model is cooperative agreements and it comprises of two
usually used types: Licensing and Franchising. Where, Licensing is an agreement
in which a domestic organisation get high pay for permitting other organisation
to create the goods, selling its product or by using it’s company name in
common international market whereas franchising is a collection of networked
company where marketer of a goods licenses the whole business to other organisation.
Because of cooperative agreement a particular company can be located in all
major cities and shopping Centre but in comparison to licensing franchising
risks are more numerous as franchisor are not obliged to renew the franchise as
it include  many restriction and
limitation in the area of promote. The third is Strategic alliance phase which
is an agreement between company where they connect their main resources, risk,
technology, capital and labour. The most known form of it is joint ventures
which involve two or more organisation or personnel in a contract for specific
goal. Strategic
alliance are more prominent in the global economy and have been formed
worldwide over 2 years but in other hand It carries large weakness in Overcoming
of language and cultural difference, clash of self-ego, organisation policies
and conflict in goal, methods ethics and waste of time in interacting, building
trust and coordinating values. Last but not least Wholly owned affiliates is
the final stage in the globalisation, these organisation are foreign offices,
services and producing goods that are 100% owned by the guardian company.
Payoff of this model can be vat if wholly owned affiliates get success as the
loss can be extremely large if they failed, because all of the risk are
accepted by parent institution. This phase is popular to build or buy and may
reduce risks of delay and opportunities with help of partners in certain
situation. Here, parent company gets all the benefits and has control over
international service but equally Expense of building, new operations and owing
exist business is not small thing. Inherent problem of international activities
easily affect the small scale industry as in Italy, Empirical analysis is
positively focus on network and clusters of SMEs, as they link the advantage of
small scale with profit of large scale industries where SMEs is reason for
increasing globalization.4

 

In
conclusion, In the recent past, globalization has become rising in some way
because of need to increase the organizational financial bases. Advance in
technology including interaction integration and better international relations
has contributes to promotion of international business. To achieve better
market opportunities and large investment/profit in international trade it is most
to do researching to make sue data related to target market in countries is
satisfied.  All the four phase of
globalisation has impact on how organization and business improve and change
with time. Particular company or business may not follow the stage of phase
model serially but they cannot skip stages on the way. At beginning
globalisation is just about gaining benefits of simple expenditure in offshore
path but now in today’s era it has strong globalizers introducing the
additional high profits to this and taking 5on top advantages where
unsuccessful company are not. Each stage of model includes its own standard of
problem although to make sure there is success implementing of these stage
needs continuous planning and managements and devote from the company.

1
Stanley J. Paliwoda 2009

 

 

2 CartelsRevista
de Economics Vol6, Iss3, Pp 36- 50(2014)

3 ENGSIG,
Julian [email protected]@ement 2017, Vol20 Issue 3, p287-297

4 Lucia
Piscitello, Francesca Sgobbi Small Busoiness Economics. 22(5): 333- 347

5 Mc
Williams 2010