Global Trends

Since organizations merge together, technology increases production, and new software enables product and consumer tracking, today’s business world is constantly changing. Companies in China now function on an international scale with the aid of trends that create a global, free trade market. For a Chinese organization to find success in globalization, it must first identify at least five different global trends that influence its home country. Once recognized, the company can decipher how these trends affect the functional areas of the business in China.

Global Trends in China

Outsourcing

Outsourcing is defined as an arrangement where one company pays another for tasks that could have been completed in-house (The Investor Words Website, 2008). Though this trend began in manufacturing, it has since spread to all organizational industries, departments, and assignments. Outsourcing has started for many reasons. The most important reason is the long-term benefit of lowering operating costs (The CDA Design Website, 2007). When companies try to master all business processes, they stretch their finances too thin.

Outsourcing also frees up resources to be used for other purposes. Those available funds can be invested in other valuable areas such as product development and customer retention. Finally, outsourcing certain departments allows organizations to focus on its core business (The EE Cap Website, 2007). If a company knows that it excels in customer service and need help in its IT department, outsourcing the weaker area would be a good business decision.

China is a country that is frequently used in outsourcing, because of the salary difference for Chinese workers. In the United States, an IT worker with 5 years experience could potentially earn $56 an hour including benefits, but Chinese nationals with the same experience only receive $12.50 an hour. This has the capability of saving a company millions of dollars (Daniels, Sullivan, & Radebaugh, 2006). This...