Introduction
Organizations must apply different strategies in order to sustain the profitability of the business. There are different efforts that enable successful market penetration, which benefit the organization itself. Many organizations expand their business through globalization. In definition, globalization in business is the integration and interaction process, which is driven by investment and international trade, while being supported by technological advancement or information technology. The purpose of this study id to present the relative advantages of globalization versus the regionalization or localization. Characteristics of a transnational organization will be presented, which operates on a global basis. This study argues that although there are some advantages that the localization can produce, globalization greatly affects the global economic development as well as the physical well-beings of many societies in many parts of the world.
According to Soubbotina and Sheram (66), the term “globalization” refers to the interdependence of countries due to an increased trade integration, people, finance, and even different ideas within a global marketplace. One of the known advantages of globalization is that participating countries will experience an unrestricted international trade due to increased access to the international market. This would also be advantageous to international companies that operate in a participating country as they have the opportunity to expand the business internationally with less restrictions. However, this is access to international trade may not be simple due to various requirements, such as the organization’s capability to penetrate the international market. On the other hand, having a strong support system, such as information technology can be used in order to achieve in the international market penetration. Many countries, especially the developing ones, choose to globalize their respective economies in spite of the potential risks. Relatively, regionalization may seem similar with globalization as it involves economic agreements with between sovereign countries (Wandrei, n.p.). A good example of regionalization is the European Union, which is composed of different countries working to together to form a stronger economic agreements. One of the known advantages is the trade gains of regionalization for each member country. Additionally, member states would be able to move their products from the country of origin across the border easier. Normally, regionalization opens opportunities to a country to sell its goods outside its border or to a bigger market outside the country. However, globalization would still be provide more opportunity to the participating country as it will provide a larger number of countries, where its goods can be sell. Unlike regionalization, a globalized economy will not suffer from fiscal capabilities limitation. A country that has a globalized economy has the control over its own currency supply that suits their country’s economic condition. Furthermore, globalization enables the creation of an environment that export-driven economic growth can reduce the poverty through bidding up wages among the low-income nations. As the people’s income increases, they become more capable of purchasing products that in return, will increase the country’s gross domestic product (Thompson, 2007). This is in addition to the increased integration of global economies that promote cross-border sharing of information, people, technology, and investments.
Transnational Organization
Transnational organizations are companies that operate across the international boundaries. It employs multidimensional organizational structure, which ensures the differentiation between functions, businesses, and even geographical location. Another characteristic of transnational organization is the integration of through appointing specific managers. Transnational organization is different from multinational and international organization. An organization can be call multinational if it involves two or more nationalities on its operation, while it can be called international if it is being controlled by two or more nationalities. On the other hand, transnational organization is normally designed to execute the objective of one interest within various national units.
How would you feel working within this structure?
Globalized economy can be viewed as a normal practice of many countries nowadays. At some point, I could be working for one of the international companies in this country. Personally, I would prefer to start working on a smaller company than to be working on an international organization right away. I want to learn and make sure that I am ready to face the any possible challenges that I might encounter once working for a bigger company. I would feel proud to be working this type of company, as I am aware that once a company goes global in terms of its operation, there are many changes that will happen, such as the skill and knowledge needed to become a member of such organization as well as the level of competitiveness, which must be above the normal scale. Moreover, I would feel my importance as an employee if I will be working within this type of organizational structure, as it means that I have what it takes to provide my contribution towards the success of a global company. Thus, I can say that I have my professional contribution when it comes to improving my country’s global economy.
Works Cited
Soubbotina, Tatyana P, and Katherine Sheram. Beyond Economic Growth: Meeting the Challenges of Global Development. Washington: World Bank, 2000. Print.
Thompson, Robert L. Globalization and the benefits of trade. Chicago: The Federal Reserve Bank of Chicago, 2007. Print.
Wandrei, Kevin. "Advantages & Disadvantages of Regional Integration." EHow. N.p., n.d. Web. 22 June 2016. <http://www.ehow.com/info_8461841_advantages-disadvantages-regional-integration.html>.
