Advantages and Disadvantages of Globalization for Business Essay

Advantages and Disadvantages of Globalization for Business - Essay Example The researcher states that globalization can be defined as the incorporation of national economies into the world market. Integration is achieved through international direct investment, trade migration, cash flow and the advancement and spread of technology. Markets, where it is prevalent and specifically widespread, are financial markets such as credit and money markets, insurance markets and capital markets. Commodity markets, for example, gold, oil, coffee, and tin. Product markets, for example, consumer electronics and motor vehicle. Globalization in relation to business can be described as the process allowing investment and financial markets to carry out business internationally mainly as a result of deregulation and better communications. It is evident that the current world is closely networked together. However, it is easy to lose focus just how rapid and systematically globalization is occurring and how many business organizations are being run. Drucker noted that globaliz ation is not an economic phenomenon but psychological. He noted that all of the advanced western principles and approaches are taken as the norm by many nations. The view took shape for Drucker in 2001 when an old student from Taiwan working in China paid him a visit. Drucker asked him â€Å"what is the most important thing that has happened in China the last three to five years?† the former student paused for a while and answered that the Chinese at that time considered purchasing a vehicle is a need not a luxury. The exact situation is same in Russia where business analysts anticipate the country surpassing Germany and becoming the biggest car market in Europe. However, taking advantage of such opportunities need a specific set of expertise. For instance, there is no need in strategizing the activities of the forever more intricate network of world suppliers, extracting profit on every deal.