Drivers Of Globalization Analysis

Register to read the introduction… Often times the drive to move into a global position for an organization is cost. The cost of running business can become more than the organization can bring on revenues. Saving on these costs by moving parts of the business to an international level can allow an organization to increase the profit margin and continue doing business. 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 …show more content…
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 a possibility that a U.S. company that imports overseas could risk exposure should the U.S. dollar decline, while a company that exports could develop a risk if the dollar should increase in value (Financial Web, n.d.). When the economy goes bad in one country it can affect other countries currency rates. Foreign stocks can be a safe place, except for the economic decline in 2008 when there was no safe investment (Little, …show more content…
A company can be only a few employees or as large as 500 but regardless of the size they all have a similar motive for globalizing which is building income. The drive to go global can vary by company. For one company the drive might be for marketing purposes. Companies can find marketing to be rather pricey in the United States, but the cost and availability to market is lower in another country. Market availability can also be strong drive for companies that offer services or products not offered in a country. Costs and Government regulations could be another driving factor for organizations. However, there could be ethical concerns when saving costs begin to affect local employment and potential employees. Globalization can allow an organization growth beyond what could be imagined, but there can be risks that the organization needs to take into consideration when