Assignment-1

Globalization is not a bed of roses.

The world is flat. I believe that globalization has created a level playing field that allows
individuals from different parts of the world to become competitive or to participate actively
in the global economy.
Globalization marks a paradigm shift in economic thinking on the part of economic
philosophers and policy-makers and represents an on-going process of change and adaptation.
One often hears, the world has now become a global village! thanks to narrowing down of
geographical distances and of barriers in thinking patterns between developed and developing
countries. Globalization essentially means opening up of the economy and its integration with
the other economies of the world. It involves deregulation and adoption of the policies of
economic liberalization and economic reforms which are calculated to encourage the growth
of private enterprise. Globalization implies change in e"ternal economic policy as well and
involves abandonment by a country of protectionist stance in commercial policies and
dismantling of tariff walls and encouragement of free and fair trade between nations.
Globalization also essentially involves pursuit of economic policies which encourage free and
fair competition inter se among public enterprises and among private and public enterprises as
well. Globalization involves release of the forces of competition within the economy which
promote economic efficiency and result in an optimum allocation of resources. Globalization
re#uires a country to promote consumer welfare and adopt customer-centric polices intended
to give him the best deal.
In this age of globalization, people from the under developed are making deep sighs, which,
in my most foolish thoughts, can be linked to global warming. Those golden days when we
could lead a comfortable life are merely things of the past. $e are all in a haste. $e eat fast,
go fast, everyone in the household are struggling for livelihood, having had to make deep
sighs very often. %arcastically, people cannot wear their clothes firmly because they have to
struggle hard. &aybe, this is the reason why the younger generations have turned to 'ean
pants, skirts and culottes which will not go of while struggling.
(s the world grows smaller because of increasingly efficient global communications and
multinational corporations, chances are good that business will take us outside the home
country. (ll types of businessman and consultants are all finding that globalization can
provide an avenue for growing business. %ometimes a customer!s international operations will
re#uire services in other countries. )ven if we never plan on opening an office outside our
national borders, we may find that our best customer has. Our customer may want to count on
our involvement in e#uipping his or her international installations. In any of those scenarios,
we should know what we!re getting into before 'umping in.
In the twenty-first century, the new global economy has changed the world of business in a
profound and indelible manner. Trade liberalization, privatization and globalization - the trio
has transformed every aspect of modern life. (dvancement in information technology and
communication has further speed up the process making geography and time irrelevant.
)conomy, society, educational system and political landscape - everything has been changed -
and business as well.
The widespread internationalization of all forms of economic activity - production, marketing,
consumption, capital, standards, tastes, etc. - has stimulated aggressive competition in the
twenty-first century business world. *usinesses, especially %&)s +small and medium scale
enterprises, with their limited budget, have faced today a fight-for your-life situation where
ignoring globalization 'ust means bringing their businesses on the verge of e"tinction.
%o, we have to fight back. In this brave new global economy, we have to develop an
international mindset which is the heartbeat of the new economy. $e have to develop a new
business strategy, articulate a pragmatic vision, e"ercise effective leadership and do
everything which are pre-re#uisites for success in the new global economy. $e have to
realize that the world is our market.
-uring the past several decades, for many countries citizen.s international business has
become a matter of survival in many industries. /igh-profile design consultants and
businessman are also increasingly involved in international work. &ost agree that having an
international presence is easier if offices are run by local nationals. That obviously helps with
issues such as language, cultural differences, and local government connections. %ometimes
the biggest challenge in doing global business simply understands that people in different
cultures conduct business differently. -ecision making and negotiations are conducted in
ways that may be totally foreign to a 0epalese -based contractor or consultant. 1irst of all, we
learn to be accommodating and we also need to understand cultural differences, work process,
work ethic 2 all of these are key elements if we intend to operate on an international basis.
$e have to be hypersensitive to all of these issues.3 In some cultures, business body language
can differ to the e"tent that miscommunication occurs, even when negotiating in the same
language. 1or e"ample, in some (sian cultures, head shaking from side to side accompanied
by verbal agreement can be interpreted as conflicting messages to a $estern businessperson,
when that is not the message at all. *eing aware of subtle aspects such as differences in
international body language is one e"ample why it is important to consider some of the less
obvious challenges. &ost of the costs and risks result from barriers created by distance. *y
distance I don!t mean only geographic separation, though that is important. -istance also has
cultural, administrative, or political and economic dimensions that can make foreign markets
considerably more or less attractive. /is 4(G) -istance 1ramework +5-istance %till
&atters,3 /arvard *usiness 6eview, %eptember 7889, for analysis of the impact of distance
on the viability of international business considers many factors that don!t usually occur to a
novice global businessperson. These factors are applicable whether we are considering
opening a branch office or providing installation services in another country.
/ence, globalization is no bed of roses and re#uires the country!s economic statesmanship to
pursue a comprehensive reforms program and set up appropriate administrative machinery to
e"ecute a series of economic tasks. The success of a country!s globalization program depends
on how it takes suitable steps to improve the investment climate domestically and is also able
to attract foreign capital. If globalization has to succeed, the country has of necessity to build
suitable financial architecture which involves banking and insurance sector reforms. (lthough
globalization is no magic wand its success has to be assessed in terms of its impact on the
growth of G0: and alleviation of the deep-seated problems of poverty and unemployment.
The new global economy is not only about challenges. It offers
unlimited e"port opportunities for entrepreneurs and small businesses. Going global increases
sales, raise profitability, insulate seasonal domestic sales and create wealth and 'ob. Then why
most of the small businesses hesitate to go global; It is often because they cannot fully realize
their potential for global trade. They think that the global market is too big and too
complicated.
Of course, operating a business at the international level is not as easy as doing business in
one!s own backyard. *ut it is very possible and there are so many e"amples of %&)s which
have successfully gone global despite their limited resources. $hat one needs to take this big
leap is ac#uire proper entrepreneurial abilities, skills, competencies < perspectives, and,
needless to say, guts.
Tips for doing Successful global Business
%ome management Guru +consultant, has recommended following tips for making easier of
doing a global business=
1. Lose our tunnel vision: 1orget the misconception that conditions around the world are 'ust
as they are in the country 2 or should be. They aren!t, and they never will be. The sooner we
embrace that essential truth, the faster we!ll latch on to other salient issues for doing business
overseas.
2. Get to know the culture: %omeone once said that it!s an incredible fau" pas to offer a
>apanese e"ecutive our business card without first turning it around so that he or she can read
it right away. That detail illustrates the importance of understanding the traditions and
nuances of the cultures with which we wish to do business. 4heck out $eb sites that discuss
various cultures? if possible, talk with businesspeople from foreign countries to gain a sense of
appropriate business practices. Is a handshake sufficient to close a deal; Is bribery an
accepted element of business leverage; 5$e think the ways of 0epal are the ways of the
world, and they!re simply not.3
3. One size does not fit all: Granted, barriers are breaking down worldwide, but that still
doesn!t mean that one product will work in every situation. )"pensive, proprietary software
likely will not command the attention of a developing third-world nation that it would in
$estern )urope. :art of getting to know a country!s traditions and culture understands interest
and demand. That, in turn, can help better direct marketing and other sales efforts.
4. What price is right= @ikewise, it!s essential to understand what pricing structure is going
to be attractive 2 but nonetheless profitable for we 2 in various parts of the world. (gain,
less developed nations may not be suitable if a product or service is too e"pensive. *y the
same token, more affluent cultures may be able to obtain like products less e"pensively than
we can offer. This can really be an overwhelming task, one that often happens through trial
and error. It!s usually a good idea to start prices a little bit high and then come down if need
be the right way.
!. "ow are we going to ship our product and at what cost= -epending on where we want
our wares to go, it!s essential to gain a realistic grasp of prospective shipping costs +likely
more than we think,. )#ually important is establishing who!s going to pay that bill. If we!re
setting up an international network, make certain we negotiate whether we or our customers
will be covering shipping +or, by contrast, if we can share costs,. 1or e"ample The )uropean
Anion has that Balue (dded Ta" that always adds to the cost of goods. $e should also pay
attention to the culture of the country in which we!re doing business. That may dictate who
should pay shipping.
#. "ow will we get paid: 4redit card use is far less common in 0epal then internationally.
Give 'ust consideration how we!re going to set up a reliable payment structure. @ook into wire
transfer systems or, if we!re doing business on the Internet, online payment programs +it!s a
way of getting what!s owed we, and many also offer currency e"change features,.
$. %onsider language difference:. If we operate a small business on an international scale,
not everyone who stops by our $eb site is going to speak )nglish. That means another salient
issue is making sure our site content also offers services in a sufficient number of languages.
On top of that, recognize that the time will come that an overseas customer, like his or her
0epalese counterpart, will want to speak with a living customer rep. %o don!t overlook
staffing, or having access to, bilingual customer-service personnel.
&. 'a( attention to politics= @astly, never overlook the political environment 2 or even
worse, the threat of terrorism 2 in areas where we hope to do business. That!s particularly
true if we!re planning on sitting a warehouse or some other facility overseas. &ake certain we
gauge the economic and social stability of prospective markets, not merely to protect any
resources that happen to be located there but also to ensure that any goods shipped will, in
fact, arrive at their intended destination.
*esides, we re#uire some commitments to be a successful global player-
Enjo c!allenges" The global market is not bed of roses - it is full of challenges and
rapidly changing. $e must adapt ourself to them and identify the opportunities.
#mpro$e ourself" (s the global market is fiercely competitive, we must seek to
always improve our products and services, marketing strategies, promotional and
advertising tactics, etc.
Be read to %elcome ne%" -ifferent international markets operate in different ways,
they are influenced by different cultures. $e must be adaptable to succeed in such
new business environments.
Be patient" To succeed in business at the international level, we need to be aggressive
but we must also know to know how and when to slow down. 0egotiate carefully.
&ar'et researc! and business trip" *efore steeping into a unknown market, do in-
depth market research and plan our strategy accordingly. It is always advisable to
travel the country so that we can have a better idea of the people, their tastes, the
market trends, etc.
(elations!ip is as important as t!e deal" $hile dealing with a client, do not 'ust try
to finish the discussion and bag the contract. ( good relationship can fetch we much
more in the future than the present deal.
)onclusion
@eading a life is not so easy particularly concerning the #uality of life, a life that guarantees
'ob security, access to education of offspring, access to #uality health care, access to clean
water and sanitation etc. :eople in the underdeveloped nations have to struggle hard. The
proverb 5life is not a bed of roses3 proves to be true especially to us in the third world.
(ctually, globalization process has a dramatic impact upon those living in the
underdeveloped.
-oing global business is not easy 'ob. $e need to better prepare to over come all the
difficulties as we have mentioned in above. $e have keeping mind the physical and societal
factors of that country like political and legal practices, cultural factors, economic forces,
geographical influences and competitive factors are also e#ually important. @ike ma'or
advantages in price, marketing, innovation or other factors, number and comparative
capabilities of competitors and competitive differences by country. (s we know there has
growth in globalization in recent decades due to many factors mostly= Technology is
e"panding, especially in transportation and communications. Governments are removing
international business restrictions. Institutions provide services to ease the conduct of
international business. 4onsumers know about want foreign goods and services.
4ompetition has become more global. :olitical relationships have improved among some
ma'or economic powers. 4ountries cooperate more on transnational issues and 4ross-national
cooperation and agreements. This is very reasons we need be better prepared and educated to
take step in the international *usiness and we easily can realized the doing global business is
not the bed of roses. There are many thons around it, we should prepared and efficient to
overcome all difficulties.
(t last, it should be kept in mind that there are numerous factors to consider before going
global. :lan at least a two-year lead time for world market penetration, define our business
plan for accessing global markets, determine how much we can afford to invest , pick a
product or service to take overseas, prepare our product for e"port, conduct market research to
identify our prime target markets, find overseas customers, establish methods of e"port,
prepare pricing strategy, set up terms, conditions and other financing options, implement an
after-sales service plan, e"plore partnerships with overseas partners that it seems to be a long
list. *ut don!t worry - it is some small business owners 'ust like we who are going to
change the shape of the world economy in the twenty-first century.