Essay on Drivers of Globalization

1080 Words Oct 1st, 2012 5 Pages
Drivers of Globalization
In today’s growth of technology companies can be based in one country and operate business on the other side of the world. Becoming a global organization has helped economies that would otherwise struggle. Instead of only being able to reach thousands of consumers an organization is now able to reach millions. An organization usually seeks to go global to increase revenue. Whether it is a small organization looking to build profits or a large publically traded organization looking to build shareholders wealth the organization is looking to grow financially. With the aspiration of increased revenue there are certain drivers that bring an organization to a certain location in a specific time. Going global for an
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Technology allows an organization to be based in the United States but provide customer service from overseas and saving on the wages they would normally spend in the United States.
Initially, the organization used a few contacts from past mission trips and one of the owners transferred to China to establish the business in China. The costs were not a driving factor for the organization and there was an increase in expenses for the owner making the transfer. However, once the location in China was established the organization began offering training for locals educating them in the business and adding to the skills they could offer.
Government Drivers
The taxes and fees placed onto an organization can be overwhelming and at times expensive. Many governments have reduced tariffs and free trade agreements making them more appealing for organizations to bring the business to other countries (Mowatt, 2012).
The Chinese government proved to be a small challenge for Smith Monitoring, but thankfully they had good connections with citizens of China and were guided through those challenges with ease.
Risks of Global Investing
Exchange rates can be one of top risks for anyone investing globally. An organization no matter how large or small needs to understand the way currency fluctuates and affects the performance of investments (Financial Web, n.d.). There is

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