Business Globalization

The emerging markets in areas such as Asia and Latin America, offer new opportunities for companies to expand their client base, their influence and their revenue. In the past few decades the news has been filled with stories of many well-known companies making the transition to the global marketplace. From Disney’s initially unsuccessful expansion into Europe to McDonalds taking the East by storm, there are numerous examples of companies taking their products and services and marketing them in the global marketplace. There are several reasons why companies have chosen to expand their operations and seek markets internationally.

Our world is getting smaller. The idea of a global marketplace has become more conceivable with the advent of technology, the ease of travel and transportation, and the increased ability to communicate across various channels. Information that previously would have taken days to communicate can now be communicated instantly. The increased popularity of the Internet has also revolutionized global business. Using tools such as email, teleconferencing and videoconferencing allows companies to communicate with subsidiaries overseas in the same manner as they might those that are in the same city. This ease of communication makes expansion overseas feasible and profitable for many international organizations.

The advances in technology and increased communication have been the primary propellant behind the shift from agriculture to industrial products in emerging nations. Companies able to capitalize on this fact have been able to utilize the resources of the countries that they enter to their advantage. Using both human capital and increased technology, acknowledging this shift has allowed many US companies to take advantage of the market conditions in India. By understanding the shift in the workforce where the primary motivating factor is for educated professionals to utilize their skills in a more conducive environment has allowed US companies to expand their customer service and information technology functions. Therefore, they have decreased their own costs and also brought job stability and opportunity to an emerging nation.

People are more mobile than they ever were before and with increased communication comes an understanding and desire to take advantage of opportunities. These same workers in India are more educated and have a greater understanding of the opportunities that are possible with their education and experience. Education has become a commodity as skilled workers are needed at lower prices in order for international companies to increase the bottom line.

The decreased cost of transportation is a major factor behind the increased mobility of people and products. The decline of shipping and transportation costs worldwide has made these costs negligible for companies to distribute their products in a global marketplace. In terms of people and their ability to travel, the global marketplace has opened up these opportunities, but also made the costs feasible for those who live in emerging nations to travel to where the jobs and opportunities are plentiful.

The various driving factors that have allowed companies to companies to globalize their operations have led to a free market that contributes to greater competition, lower prices and more opportunities for those in emerging markets as well as the corporations that initiate these paradigm shifts. No one factor is responsible, but all factors combined have contributed to a robust global marketplace providing a ripe feeding ground for any company that chooses to make that foray into the global marketplace. International conglomerates such as Wal-Mart and McDonalds have shown that this process is profitable and advantageous given the right conditions and use of due diligence. The most important notion may be to become an organization that uses these driving factors to its own advantage and does not become a victim of market conditions.

Kate Gardens is a custom essay writing expert writer and UK customers support consultant at Customessays.co.uk. Get more details for custom essay writing.

Kate Gardens is a custom essay writing expert writer and UK customers support consultant at Customessays.co.uk. Get more details for essay writing and find more tips for coursework .