Globalization and Its Impact on Business Essay Example | Topics and Well Written Essays - 3250 words

Globalization and Its Impact on Business - Essay Example Globalization can be therefore called international integration (Noam Chomsky, 2006) and can be explained as a practice by means of which the world community are unified into a distinct social order and operate collectively in a process which merges financial, technical, socio-cultural and political forces. (Sheila L. Croucher, 2004) The Driving factors of Globalization are reduction in travel costs at a global level, liberalization in trade policies, and the high rate of growth in Information technology. Globalization originates with the discovery and migration of the New World which is elucidated by Thomas L. Friedman, in his book, 'The World Is Flat', where he "examines the impact of the 'flattening' of the globe", or an international 'flattening' of competition in businesses facilitated by escalating global inter-connectedness. Friedman debates that globalized business and trade practices including outsourcing, off-shoring, supply-chaining, and economic, technological, and political forces have misused the face of the business world eternally (Friedman T. L., 2008). Business globalization refers to a company's undertaking of sales and assets across international borders and the resulting flow of capital, goods, services, and labor. Coca-Cola is a good example of a company that has successfully cultivated its international business, with more than 70 percent of its income originating from non-U.S. sources. The various tactics that Coca-Coca uses to achieve this include developing a global consumer market, establishing transnational corporations to reduce production costs, product branding and positioning, competition-based pricing, and more. Effects of globalization on business Cheap offshore production Offshore Production entails the... The Driving factors of Globalization are reduction in travel costs at a global level, liberalization in trade policies, and the high rate of growth in Information technology.Globalization originates with the discovery and migration of the New World which is elucidated by Thomas L. Friedman, in his book, ‘The World Is Flat’, where he â€Å"examines the impact of the ‘flattening’ of the globe†, or an international ‘flattening’ of competition in businesses facilitated by escalating global inter-connectedness. Friedman debates that globalized business and trade practices including outsourcing, off-shoring, supply-chaining, and economic, technological, and political forces have misused the face of the business world eternally (Friedman T. L., 2008).Business globalization refers to a company’s undertaking of sales and assets across international borders and the resulting flow of capital, goods, services, and labor. Coca-Cola is a good ex ample of a company that has successfully cultivated its international business, with more than 70 percent of its income originating from non-U.S. sources. The various tactics that Coca-Coca uses to achieve this include developing a global consumer market, establishing transnational corporations to reduce production costs, product branding and positioning, competition-based pricing, and more.  Offshore Production entails the fabrication of goods in a foreign country for import to the domestic market. One of the major effects of globalization is the cheap offshore production.