Extended Essay Zheng

Topics: Globalization, Corporation, Multinational corporation Pages: 8 (1734 words) Published: December 3, 2014

Extended Essay

Which of the forces and drivers of “globalisation” will most impact on the business environment?

Zheng Li
16/ 09/ 2014 Word count: 1505
There is a widespread belief that the world at the beginning of the twenty-first century is changing more rapidly and dramatically than ever before. Generally, many of those changes are also believed to be connected with something called “globalisation”. Globalisation, as David Held(2002) pointed out, is defined as “a shift or transformation in the scale of human organization that links distant communities and expands the reach of power relations across the world’s regions and continents ”.

Although globalisation is no longer a new topic, the topic of which forces and drivers of “globalisation” will most impact on the business environment is still being discussed frequently. In this essay forces and drivers of globalisation will be treated separately: forces of golbalisation is more like something caused by globalisation, such as regional protectionism and cultural differences, whereas drivers of golbalisation is something that will cause globalisation, for example technology. This essay is going to argue that there is no single force or driver of globalisation that will most impact on the business environment, as forces and drivers of globalisation such as technology, regional protectionism and cultural differences will all have great impact on the business environment, and in different ways.

In order to demonstrate this, this essay will first focus on technology’s impact on the business environment, from the perspectives of customers and companies, and will show how customers are being empowered by technology and how technology has benefited companies’ communicating ways with customers and other firms. Second, it will be shown that the impact of regional protectionism on the business environment is that future business will grow primarily along regional lines rather than global lines. Third, this essay will show that as a force of globalisation, cultural differences will slow down the trend of globalisation in the business environment. Then, with the information above, this essay will argue that in order to have an overall view of future business environment, any of the three factors can’t be ignored, thus, there is no single force or driver of globalisation that will most impact on the business environment. Technology

Technology, as a driver which is beneficial to globalisation, has had a great impact on the business environment in many ways. First, technology has redefined the importance of customers in the business environment. As Benjamin R. Lawlor(2007) claimed, with modern technology such as internet, customers are able to get to know what products are available all over the world, in which way they can find the products that suit them best. As a result, consumers are increasingly becoming important in the business environment as they have more opportunities to choose products. Furthermore, because of the advanced technology, online business is becoming more and more popular. Friedman(2006) used E*trade, an online bank commission house, as an example to show that consumers are being empowered. He claimed that what E*trade does is to provide its customers a platform with not only an overall view about their financial accounts, but also with much details. Thus, customers are empowered because they think that every product of E*trade is designed specifically for them. It is clear then, with the impact of technology, consumers are playing a more important role in the business environment then before.

Second, technology has changed the way how companies communicate with customers and other companies.  Alex Pirouz(2012)...

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