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Solution
Question 1- 1,025 Words
The Trend Towards Greater Globalisation of International Business Activity
Globalisation arise from developments in technology, trade liberalisations and economic capital flows that have a great impact on international business activity (Harahap et al., 2023). The global trade has witnessed substantial expansion in recent times which has led to the growing economic dependencies between countries. This interconnectedness enables multinational corporations to integrate production and market expansion initiatives which leads to both efficiency improvements and growth opportunities, according to Beisenbayeva et al (2024). This is supported by CIPD (2024) identifying the multinational organisations as transitioning towards an increased integration. This is in regard to organising themselves internationally, motivation through the presented potential of exploiting cross-national differences in business practices. The success in global integration transition past organisation development practitioners.
Technological advancements particularly in communication and transportation serves as one of the core factors driving globalisation (Singh et al., 2024). Song et al. (2017) demonstrate how internet and digitalisation technologies enable firms to start international businesses easily which has enabled simpler supply chain integration and remote work capabilities. The logistical advantage created by containerisation and air freight has made international procurement and worldwide distribution of finished products more affordable for firms (Wei, 2018). Trade liberalisation, together with economic policy frameworks have served as accelerators for global developments. Perraton (2019) explains how agreements such as the European Union (EU) single market, North American free trade agreement (NAFTA), and the World Trade Organization (WTO) support cross border trade and investments, reducing tariffs and regulatory barriers. Developing economies including Asian regions have observed a rise in foreign direct investment (FDI) as they participate more actively in global supply chains (Oramah & Dzene, 2019). For succeeding and embracing sustainable change process, upskilling and empowering the globalisation players who could be lacking in the traditional change programs is a challenge.
Moreover, the labour market dynamics have also furthered globalisation (Akcigit et al., 2018). This has resulted in off shoring of manufacturing and services jobs to developing economies because companies require affordable production locations (Meagher, 2018). This has stimulated the economic development in these regions and enabled consumers based in developed economies to have access to goods and services at lower cost. According to Stypińska & Nikander (2018), one of the other main reasons for international business expansion has been financial globalisation. According to the authors, deregulated financial markets provide capital mobility where investors has access to international opportunities and economic growth is spurred. Additionally, according to Ketteni & Kottaridi (2019), advances in the development of global financial institutions and integrated capital markets result in businesses having access to funding across border and hence economic linkages. However, globalisation has difficulties. In his research, Olssen (2020) explains several debates that have arisen as a result of the long-term sustainability concerns that stem from income inequality, environmental degradation, and national security. The vulnerabilities that were exposed in global supply chains during the COVID 19 pandemic have left many companies and governments to question their reliance on overseas production (Yaya et al., 2020). Nevertheless, overall economic prosperity has largely been driven by globalisation, increasing technological exchange and international collaboration.
Whether There Will be Reduced Globalisation in the Future
While globalisation has greatly impacted the international….
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