Globalization and Business

Globalization and Business

Ahmed Ismail

MBA 620

Globalization is a term that has been recently introduced to the world, yet has been put into practice from the early ages of human civilization. Several scholars claim that globalization in terms of trade of goods and cultures between different civilizations has started early with the trade links between the Sumer and Indus Valley civilization in the 3rd millennium B.C, while other think it started with the trade between the Roman Empire and the Parthian Empire. A third group believes that the golden Islamic era with the origin of the modern trade, yet most of those scholars believes that the term have seen great progressiveness in the colonization age. (History of Globalization, July 2012)

Regardless of how different scholars identify the origin of Globalization, they have all related it to trade between nations which means a form of international business. In the modern days Globalization has become a main player in any big corporation and any business that want to grow and generate more revenue. Globalization for most of businesses as mentioned above would mean openness to new markets and new cultures, expanding opportunities beyond the location. There are good aspects, bad aspects and ugly aspects for Globalization associated with the international businesses. (Mourdoukoutas, 2011)

The good side of globalization connection with business can be summarized in several points that can be clearly seen; the unlimited opportunities of supply for different raw materials and semi finished materials from all over the world, the different potential markets for the different products produced by any markets, the easiness to connect to your suppliers, vendors and customers, the opportunity to produce over sees and to offshore parts of the products due to low cost of labors in some areas around the world, and finally the easiness of money transaction with the different credit and leverage options that the companies...