Globalization is not the bed of roses

At present the world has changed global village. Economic liberalization (i.e. economic freedom, free trade policy), increase in FDI, advancement in transport and communication and other infrastructure have developed globalization concept.

Today even a person staying in Nepal are able to know the world news, even they can watch the movies in the India’s famous multiplex BigCinemas. People can use the product of world famous brand Lorealls. Even we are able to ride Mercedes, we are able to chat with friends in yahoo, facebook and other social websites. The companies in Nepal are able to install new technology. We are able to do all these stuff because people and all the business organization and institution are socially integrated in a single globe.  And this is Globalisation.

In globalization, and each country creates open environment for other countries’ business organization to expand their business activities in own country. They are allowed to expand business activities in the global market.

The advantages of globalization to the enterprise are: they can expand their market to new geographical boundaries; creates greater employment opportunities in the country; technology transfer and so on. But this does not mean that globalization is like taking photographs even that is challenging. Managers should be able to grab the opportunities created. There are peoples from the different social values, cultures, religions, and family backgrounds and posses many other challenges.

Workforce diversity: When an organization enters into the global market there are various people who are from different cultural backgrounds. They share varied ides and way of thinking. The way of taking task has greater differences. They share different value system. They varied on their qualification, experiences and ability. It may be greater challenges to the managers of the business organization to manage the workforce in the organization.

Changing technology: It is a headache for the small enterprises to adapt with the new technology. Big corporate houses invest their huge amount of capital to develop more effective technology to increase their competitive strength.

Immense competition: When any organization enters to global markets. They faces large numbers of competitors. It is their very difficult task to increase their competitive strength. Big organization dominates the smaller organization.

Exploitation of physical resources: For a least or under developed countries, when big corporation enters in the market, it is very important for them to control over-exploitation of the resources. The tendency of the big business organization is to take profits to their own country. They use the maximum resources of the home country, take maximum profits.

Laws and regulation: For the organization in some country it is very challenging to act according to rules of that country. In some countries where there is communism business organization faces greater challenges regarding the laws.