Paper Example on Globalization: Idealistic Motives for Making the World a Single Market Place

Globalization refers to the constant growth of interdependence of the world's economies, population, cultures, brought about by international trade of services and goods, the flow of capital and information. Evolution in business means its growth, origin and constant development and expansion in diverse sectors that determine and run the business activities (Cartwright, 2014). Globalization comes with idealistic and opportunistic motives for making the world a single market place. Globalization has continuously catalyzed business evolution and corporate business expansion. Globalization has repeatedly brought about business growth in the following processes:

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Exchange of technology; technology has been a critical factor of globalization, and business growth, international and entrepreneurial oriented companies have used technology to develop and exploit new business opportunities to venture into. With e-commerce and internet, globalization has become a reality. Technology has turned ideas worked at the garage into world household names with a vast business portfolio like never seen before. For example, Amazon, Alibaba and Google. Also, technology is one of the tools of competition and quality products, and the companies are using the latest technologies to increase productivity, quality and to reach out to potential customers in new markets (Cohen, 2018). Globalization has hastened the transfer of technology and technology improvements.

Knowledge transfer- information is the most valuable asset in productivity and success of the corporate business. Data is easily transferred from one nation to another. This has to lead to local and national business venture into international companies due to the readily available information (Cohen, 2018). As a result of globalization, the business environment has gained a lot of experience and knowledge, and thus the businesses keep evolving.

Competition- globalization leads to increased competition. Competition can influence the service and product cost of production and market prices, the adaptation of technology, quick response to market trends and speed of production of goods and services. When the production cost of a product is cheaper, it leads to less purchase price; thus, the company increase its market share. With diverse choices of products in the market, the clients will expect high-quality goods at low prices. The company need to respond to these expectations, or it will lose its market share (Manrai, Manrai & Mady, n.d.). The company must be ready for competition and respond to customers' tastes and preferences.

Due to globalization, local businesses have evolved from the local stage to the global stage. The following is the evolution process.

At first, the local businesses evolved in three sub-stages:

• Barter economy
• Village level
• Town economy
• The second stage, regional companies grew due to the cooperation of different market players.
• The third stage, the national business was a result of regional presence felt in the country.
• Fourth, international businesses emerged as a result of the scarcity of resources in different countries (Manrai, Manrai & Mady, n.d.).
• Finally, the idea of a global market was realized.

References

Cartwright, R. (2014). Growth and globalization. Mastering the Globalization of Business, 166-178. https://doi.org/10.1007/978-0-230-80202-5_11Cohen, B. (2018). The Definition of Business. Innovations: Technology, Governance, Globalization, 6(2), 3-12. https://doi.org/10.1162/inov_a_00066Manrai, L. A., Manrai, A. K., & Mady, T. T. (n.d.). Effect of Globalization on Multicultural Consumer Behavior. International Business, 2041-2058. https://doi.org/10.4018/978-1-4666-9814-7.ch094