How Globalization and International Business Are Related

How Globalization and multinational Business Are RelatedGlobalization with new-fashioned value migration ( more than economically rough-and-ready furrow flesh) has opens up more doors to opportunities. The literature review is embarrassed into 5 parts Firstly out-of-pocket to globalisation, in that location will be restructuring in income resulting in more customer conjunctives/segments restructure. With come apart segmenting capability and new business models, new opportunities can be ride on and unparalleled requirements be met. Secondly, expansion of segment requires customization for each new market and effective management involves balancing between custom ratio and business design segment to get right combination of response rate/ woo structure. Thirdly, increasing growth at base segment leads to entrepreneurs supply inexpensive design, entirely eventually high profitability will attract them to insurance premium segment. Premium players will counter attack by also catering new gloomy cost business design. Organization moldiness underpin against market takeover which earns lead increased competition/luck. Fourthly, redefining innovation is chief(prenominal) to piss high impact success activities. There must be balance in investment in innovation beyond growth/processes that create values for investors/customers like alliance and global talent sourcing. Lastly, remarkable information chain that connects customer to innovation is important for shaping to create copyrighted information to gain head start by deploying its preposterous information/application system. To end off, there must be risk management system to respond to new waves of trend/risk.Rational for natural selectionGlobalization is inevitable, ever-changing, shape competition and waits for no one. In this technology-fueled global environment, businesses must stay ahead these trends to remain competitive. I want to have smash understanding of Globalization as it is t he stepping stone for International Business by giving rise to supranational commercial legal proceeding.Analysis and ViewpointsPositive Aspects of the obligate Slywotzky et al (2006) identifies the significance of having appropriate business models due to consumer pressure and income restructuring induce by globalization. I agree that when operating abroad, global competitive scheme must be adopted for different foreign conditions. Daniels et al (2011) corroborate this and evaluates that organization must have different market responses in install to be global to compete, response to foreign opportunities and learn from each other. Hence, modify business models by investing on RD, source worldwide to fail more efficiently in innovation/ results is essential to meet the contain of global customers. moral To gain global focus, two Brazilian firms fudge business model and merge to form BRF-Brazil. Slywotzky et al (2006) also gave resolve that globalization will drive organ ization to be innovative in creating its own proprietary information for success. Daniels et al (2011) and Davis et al (2007) concur by stating that foreign companies are the source for domestic companies to stay innovative and create own unique business models. Globalization provides the stepping stone for multinational transactions because of technology expansion, liberalization of cross-trade, increase demand in foreign product and opportunity for global cooperation. Example Foreign firm will commence in new technology and better experienced workers. Also, increasing international competition will induce local firms to add skilled workers to negociate new technology. This will help companies to explore innovative means of more efficient production which cut cost and increase production. Pursing international gross revenue usually increase potential markets, helps acquire resources at lower cost, better/new products and additional operating knowledge to gain competitive advanta ge. These helps to fig better global branding resulting in more profit due to higher exports demanded.Negative Aspects of the Article Slywotzky et al (2006) comment that globalization has induce more effective low-cost business design, more customer connections and segments which organization can exploit. But I feel that this article fails to cover legion(predicate) negative pitfalls like social and environmental problems. Kumenit (2008) and Daniels et al (2011) argue that low cost strategy brings about negative effects and profit/income disproportionate. fresh shift in manufacturing job from US to mainland China has help China to grow faster and reduced US real wage growth. We promise that in USs garment industry, where it is cheaper to produce in China. This would mean a lot migration of work and many US citizens would be jobless. Globalization in this sensation is good for organization as they can capitalize on cheaper labor, but bad for US citizens especially if they are l owly skilled. Those lowly skilled will be stuck in underground economy leading to policy-making instability which undermine international trade/investment. In ontogeny countries, globalization/multinational investment leads to environmental degradation and generates pressure for cheaper labour to agree competitiveness. Hence, it erodes values of social justice and increase inequalities. Small enterprises in developing areas will face complexity in taking advantage of globalization and poverty persists. Global restructuring also dramatically affects rights of workers in developing countries. Example Development of China as a world factory due to its cheap labour is causing worker suicides problem. Due to poor on the job(p) condition/low salary, emotional health of Chinas migrant workers is on the land toll. Nine employee deaths at global electronics manufacturer Foxconn, Apples main supplier of iPhones revealed nigh harsh social aspects (The Straits Times, 2010).ConclusionIn or der to make whoopie the full benefits of globalization, organization must have the right global business design, global operation strategy, global focus, customization, organizational structure, customer connection activities, innovation, proprietary information and risk management system in place. Though there are viewpoints on optimizing its benefits, the article failed to explore issues in relation to adult male rights, environmental matters, political instability and inequalities. These are common global concerns which have to be respected and since international business transactions have connection to these concerns, it is crucial for laws of international business transactions have to be in a position to promote guidelines to regulate global concerns which will in turn benefit businesses.