HOW GLOBALIZATION IMPACTS BUSINESS

Many companies become global because of the globalization. This means that a global firm manages their business as one unit which spreads over the world. Also, global organizations have centralized and strictly followed structure because they produce standardized goods and services for consumers (Globalization, 2016). Example of such organizations can be McDonald's, Microsoft, Philips, Shell, Apple etc. The employees of these companies, which are all over the world, are dressed in the same way and perform the same procedures in order to make the products and serve the customers. The advent of globalization promotes the production and the operations in the industries that manufacture commodities. After the production of these commodities, the sale increases and thus the economic returns increase. Also, as the companies expand to other countries, cheap labor becomes readily available, and this leads to the loss of jobs locally due to the outsourcing of labor from other countries at a cheaper cost (Saunders, Wong and Saunders, 2011).

• Incomes: As the countries and their economies become connected, disparities are noticed when the incomes of the populace are considered. Educated persons tend to earn more than those who work in the product segments, who earn less (Ray, 2007). • Brain Drain: The concept of brain drain affects mostly the developing nations and their economies. Brain drain refers to the tendency for the skilled and educated experts to migrate to other countries in search of greener pastures. A good example is a way computer experts migrate from India to the United States to get jobs. Globalization encourages brain drain since experts are able to go and work in other developed countries where they are paid awesomely. This in return affects the economy of their native countries since they are left without experts hence lowering the quality and productivity of goods and services (Saunders, Wong and Saunders, 2011).

This means that international managers should analyze these two techniques before deciding which one will have more positive results for the organization than the other.   The issue Apple is dealing with in information technology is the outsourcing and offshoring of its jobs. The jobs for the iPod and Macintosh are being outsourced from other countries because of the low personnel cost. The company is in the business of creating profits for its shareholders. By offshoring jobs overseas to countries like India and China companies see an increase in profits. The problems that could arise from outsourcing and offshoring is that these jobs are taken away from the American society. If the company offshores to the wrong countries or at the wrong time that could impact the profit margin.

Core business that has not been defined could also become a problem when outsourcing is used. Outsourcing is not profitable if the end result was not able to provide the necessary leverage to the company. Any company has a definite amount of talent, by outsourcing this talent becomes smaller and shrinks as a result of jobs going overseas. The way Apple combated a declining customer satisfaction is by providing quality products while still maintaining a form of outsourcing. By not completely outsourcing the product, Apple maintains a high customer satisfaction with the high-quality product but also preventing jobs from completely leaving the United States. By keeping jobs here in the United States the talent pool of Apple is not shrunk. When a new position opens Apple has the right personnel to take the new Challenge.

Privacy issues are no longer hey problem because Apple is not dealing with a country's laws in many aspects but rather one aspect. Bringing back jobs that were sent overseas will increase employee satisfaction. As long as employees are satisfied their job production numbers were always in the high. Evolution of globalization Technology is the driving force behind the economy and also globalization. The interconnectivity began in the 18th Century and had spread all the way to the 21st Century and throughout these three centuries; there have been three industrial revolutions. The first industrial revolution occurred in the 18th Century and impacted the manufacturing industry. Therefore, content that is posted online has an impact on the way governments operate and how democracies may be changed.

Economies are thus affected when one person can do business from one end of the world with another person far away. The fast flow of information and data has seen the introduction of the concept of e-commerce (Ray, 2007). E-commerce entails the conduction of business across digital platforms. The best example is the sites such as Amazon and eBay. The introduction of the telephone and television has revolutionized the way we get information. People can nowadays get information by the press of a remote button. Trends in the fashion industry and the changes washing over the industry are communicated in the shortest time possible, thereby changing our cultures. Another aspect is the way businesses relate to the global market is through the establishment of transnational mergers.

These mergers foster international competition and boost the returns of the companies. Most people feel that this controversy is a wash. To grow as a country, you have to be able to take the risk that your country may suffer as well. One day your country could be doing fine, and the next day your economy could be going right down. Experts think that eventually, countries will have to take this risk if they want to grow economically and financially as a whole. Some also argue that globalization will create jobs, increase the competition between companies, and at the same time, lower product prices for the consumer (Lamba, 2012). Globalization is not the sole cause of the inequality of wealth between developed and non-developed nations, but it is obvious that this new global marketplace has produced unequal benefits between developed and non-developed nations.

Globalization needs regulations and reforms to be put in place in order to level the playing field of benefits. Globalization is responsible for the large-scale sales of arms from developed to non-developed nations. According to (Gunawan, 2011), the most powerful nations in the world, such as the G-8 countries accounted for 87 percent of all arms sold abroad while the United States accounts for half of those armaments exported out to the world. The developed countries are taking advantage of the LDCs making large profits from the illicit selling of weapons. It is cheaper to live in other countries; the food, housing, and daily life are not as expensive as more developed countries. If there is an ability to live in an area with less money, then the people do not require as much money to work more than other countries.

If the products can be made cheaper in other areas, then the companies can offer the products at a much cheaper cost. This is because the less expensive products allow there to be a wider demographic of consumers to purchase these products  (Werhane, 2012). The ability of more people being able to purchase a product means that the companies will be able to grow faster and larger. Managers should also understand that when the two companies are fighting for sales the less expensive one will surely do better and have a better chance of growing bringing on the chain reaction of the ability to hire more people thus building the economy (Werhane, 2012). References Globalization.  International Journal of Psychology, 51, pp. Gunawan, L. Entrepreneurship: Entrepreneurs to Win Their Sustainable Competitive Advantages within Globalization Era.