PIED3650 Global Political Economy

DISCUSSION AND ANALYSIS OF GLOBALIZATION LINKAGE WITH CORPORATE GROWTH Student’s Name Course Professor’s Name University City (State) Date Discussion and Analysis of Globalization Linkage with Corporate Growth Introduction Globalization and corporate growth are working together to make big changes in how companies worldwide run their businesses in today’s global business world. Because globalization affects economies, neighborhoods, and markets in so many ways, it has become important for businesses to understand and grow in this area (Froud et al., 2000). Globalization is more than just linking countries; it is a complicated process involving mixing economies, moving money, goods, services, and information across lines, and the changes in business because of these things. In the middle of this complicated web of links is the main process that helps businesses grow to levels that have never been seen before. During this process, chances, issues, and routes are made that could change how businesses worldwide run. Many of the changes and effects caused by globalization are closely linked to the growth of businesses, which is necessary for long-term success in very competitive markets (Min & Smyth, 2014). It is not a strange accident that globalization and business growth happen at the same time. Instead, it is because many things interact and cause plans, operations, and goals of businesses that want to grow abroad to change. There is a positive relationship between globalization and the growth of companies. This essay aims to look into that relationship and find the factors, causes, and effects that make it so. This essay aims to show how difficult it is for these two important parts of today’s business world to get along by looking at how globalization has changed business strategy, market growth, access to resources, technological progress, and how international trade is made. Discussion Throughout history, the expansion of enterprises has been significantly influenced by many globalization-related factors. How currencies are fluctuating, how financialization is expanding, and how businesses are modifying their strategy to maximize profits for their shareholders are all indications that these things are connected. Helleiner emphasizes the significance of foreign currencies, particularly the United States dollar, in influencing international trade and financial systems in his book, published in 2008 (Helleiner, 2008). The dollar is the primary reserve currency used all around the world. Because of this, transactions are simplified, currency risks are reduced, and businesses can enter international markets. When it comes to conducting business across international borders, multinational corporations benefit from the stability and availability of the dollar since it makes the process more efficient. (Pettinger et al., 2021) Growth in businesses and globalization are closely linked through many complex processes and changes that are a part of the world economy. Thanks to globalization, businesses can easily reach new areas outside of their own countries (Yang & Tsou, 2019). Getting into the global market can help a business by bringing in more customers and making more money. This helps spread risk and encourages business growth by making companies less dependent on a single market. Globalization has facilitated the discovery of additional materials and sources. These can, after that, be utilized for a broader spectrum of activities and results (Schwan et al., 2020). Various tools are beneficial for businesses as they enhance productivity, improve product quality, and foster innovation. They increase in size in this manner. Companies with access to emerging technologies can enhance their operational efficiency and devise innovative task approaches. This can facilitate the development of novel products or services (Baker et al., 2021). We facilitate this process by assisting their growth and ensuring they maintain a competitive advantage. The primary catalyst for economies of scale is globalization. The sentence implies that firms have the potential to reduce expenses by increasing the production of a specific product or service. In their 2021 study, Nguyen et al. asserted that enterprises can enhance their profitability by increasing production volume and reducing the cost per unit. Businesses may allocate more funds towards expansion, research, and development by catering to a larger clientele and using economies of scale. But this facilitates their further growth. Globalization facilitates enhanced financial gains for businesses. They can trade stocks or bonds globally, acquire low-cost capital, and attract customers from different regions to purchase their goods. A financially affluent firm can undertake several actions, like expanding its operations, investing in infrastructure, mergers with other companies, or acquiring them. These factors all contribute to the overall growth of businesses (Sadiq et al., 2022). Globalization enables companies worldwide to collaborate and establish intelligent alliances. Collaborating with global corporations can provide novel resources, expand your avenues for generating revenue, and help you acquire valuable knowledge (Kyove et al., 2021). Companies can leverage their abilities and expertise through collaborative strategic alliances or joint ventures. This mutually benefits both parties and facilitates their expansion into novel product or market domains. Globalization enables organizations to enhance their supply chains by sourcing components or services from locations that offer cost advantages or possess specialized expertise in specific domains. Monitoring transportation and the supply chain effectively enhances the efficiency of deliveries and reduces expenses, promoting growth and competitiveness (Marsden, 202·). Due to the world’s interconnectedness, companies may effectively recruit individuals from diverse origins and global locations. This facilitates the identification of individuals possessing distinctive expertise and enhances the cultivation of their staff. Access to qualified and diversified personnel enables companies to enhance innovation, creativity, and flexibility. This facilitates corporate expansion by optimizing workforce use (Blowfield & Murray, 2019). The concept of global supply chains is crucial as it exemplifies how globalization may facilitate corporate expansion. Globalization facilitates corporate expansion and profit generation by establishing intricate global networks that connect the production and distribution of goods worldwide. (Anonymous, n.d) As a result of globalization, businesses use trade networks that span the globe to expand. Global supply chains help businesses grow into new markets, which lets them serve more customers worldwide (Manoharan et al., 2020). Companies can get more customers and make more money by doing things that are done worldwide, like buying parts, making goods, or providing services that meet the needs of different markets. Companies that want to grow in the long term know they need to be able to reach customers all over the world. Through global supply networks, businesses can save money by getting goods, labor, or parts from countries with comparative benefits (Muhammad & Khan, 2021). Looking for ways to cut costs makes businesses more competitive by letting them make things or offer services while spending less. Because of this, there may be more chances for growth and better profits. This is the process of adding new technologies to a company’s global supply networks in a way that does not cause problems. Working with suppliers or partners worldwide brings together new ideas and cutting-edge technologies (Nell, 2020). Using technology, businesses can simplify their goods, run their businesses more efficiently, and encourage creativity. Global supply chains enable strategic partnerships and collaborations between firms. By partnering with suppliers, manufacturers, distributors, and service providers, you can access huge marketing networks, specialized knowledge, and considerable resources that may not be available in your country (Nasreen et al., 2020). These links improve operational efficiency and business growth. Due to global supply networks, they can better handle natural disasters, international issues, and outages. Spreading operations among sites may mitigate regional interruptions (Majeed et al., 2021). Operations must quickly recover and continue to preserve growth patterns from unexpected barriers. The ever-changing demands of global supply networks make it crucial to innovate and adapt. Businesses connected to global supply chains must constantly change to keep up with new technology, changing customer tastes, and how the market works. A high level of flexibility encourages new ideas and quick thinking, which lets businesses quickly seize growth opportunities. Thanks to global supply networks, companies can efficiently meet the market’s needs (Stofkova & Sukalova, 2020). To keep your customers happy, you must quickly change your production methods, distribution routes, and services to meet their changing needs. Being happy with your customers leads to repeat purchases and market growth, which is good for business. It is possible that a multinational corporation based in Europe would utilize the United States dollar as its trading currency while dealing with partners located in Asia or Africa (Ajide et al., 2021). Using a currency that is accepted everywhere allows you to save money on transaction fees and simplify financial responsibilities, which contributes to expanding businesses in other countries. Petry examines the trajectory of financialization in state capitalism in 2020, with a particular emphasis on China (Petry, 2020). The Chinese government is very important because it controls the flow of cash and the way markets work. Because of this effect, business plans are changed because they encourage growth in areas seen as important for the country’s progress. Government...