- Identify main drivers of globalization
- Define the main arguments for globalization
- Explain the challenges and opportunities
- Describe the concept of the global economy
- Define ethical issues faced by business leadership
- Identify potential causes of unethical behavior
- Describe different approaches to solving ethical dilemmas
- Examine how managers can incorporate ethical considerations in decision making
Identify main drivers of globalization
There are several main drivers of globalization. Some technological drivers are very critical in driving globalization. The technological advances in the transportation and telecommunication have been critical in shaping and flourishing of globalization. The political operators have created international trade through the creation of rules that favor the trade and having relationships with other nations that will lead to globalization flourishing.
The market drivers are a way of extending the current market base by moving from the local market to larger international markets, therefore, fostering globalization. The cost drivers drive globalization since a firm may choose to extend its activities internationally due to the varying costs that a company will incur from country to country. Therefore, a company takes the opportunity to build a global scale economy bringing about globalization. There are the competitive drivers whereby if the firm is to remain competitive, it has to create the global products and increase their marketing activities, and in so doing introduce new products as well as upgrade current products and therefore foster the globalization.
Define main argument for globalization
Globalization has both the positive and the negative sides. The arguments for globalization encompass the positive effects that are brought about it. Globalization has been viewed to help solve the problems of unemployment and poverty since it promotes the growth of economies. The result is the creation of jobs, higher competition among companies leading to lower pricing of products. The entry of local firms into the international market increasing the company’s consumer base, therefore different products can be accessed by customers in the nation’s away (Hill, 2008).
Due to the technological advances, there is more information influx between nations and through information exchange there is a cultural exchange between two countries thereby fostering good relations. Socially, the countries become more tolerant of each other. Thus, they become more open when having dealings. It also leads to the creation of world power instead of the segregated superpowers which are proving beneficial in tackling problems and making a decision that may arise affecting the general population.
Explain the challenges and opportunities
Globalization is faced with challenges despite the many opportunities that it avails to the local people of a nation. The localization of an international product to suit the local market has proven to be challenging due to the demographics involved. The firm has to take into account the varying tastes and the marketing strategies that will suit the local market. The implementation of the globalization process will require the company to identify the elements of a product that can be universal and those that need to be localized depending on the local market, the firm wishes to enter. The need to restrict a product is also one of the ways to retain the local culture identity.
Globalization brings with it a global culture that has the potential to erode the current domestic culture. The global culture that may be being enforced on the local people may also be criticized for promoting consumerism thus undermining the current local culture. There is the fear that it can lead to instability especially in the developing countries. There are opportunities too when globalization is fostered in new nations. There is global free trade leading to the establishment of a global economy. There is an influx of the amount of finances in the country from the increased trade. The improved investments will result in increased capital which will lead to less poverty level in the nation. Additionally, there is the concept of transfer of such services as labor from one part of the country to another (Hill, 2008).There is the creation of transnational regulatory frameworks which socially have the responsibility of each individual’s welfare in the countries.
Describe the concept of global economy
The global economy is the distribution of capitalism internationally. Globalization could encompass the entire process of the intensification of the economic activities across the world (Steger, 2010). The primary goal of globalization is to ensure that all of the barriers to trade are gotten rid of. In recent times, there have been challenges when it comes to the participation of countries when it comes to business. However, globalization aims at ensuring that such barriers ate gotten rid of in a bid to have countries participate in the trade in a fair manner. Through globalization, it would be possible to have countries freely take part in different trading activities. Through the same, there would be an increase in the economic activities in various regions of the world. The process of globalization is one that is characterized by cumulative as well as the conjectural crises in the international labor market. There is also the relation between the national governments in different parts of the world alongside the labor market. Ideally, the concept of globalization would revolve around the issue of capitalism.
Define ethical Issues faced by business leadership
Leaders in business have a role to play in ensuring that they practice the highest standards of morals (Sims & Brinkman, 2002). There are many different kinds of the ethical issues when it comes to the need to operate in an ethical manner. As a leader in business, it is important that one leads by example in practicing ethics. The first issue of ethics for a company leader entails ensuring that the company operates in the most sustainable manner. As a leader, one has the mandate of promoting standards by providing the policies within the organization are in line with the need to remain socially responsible. Secondly, there is the need to practice equality at the workplace. The business leader has a role to play in ensuring that the organization from which they are operating carries out activities characterized by equality for all of the members. Such can include the implementation of the affirmative action within the body.
Identify potential causes of unethical behavior
Unethical behavior can come about as a result of many different factors. The first is the need for companies to want to earn too many profits at the expense of the environmental. For example, many of the organizations could take part in activities that yield benefits but have a detrimental effect on the environment. In the same regard, other organizations fail to adhere to the rule of ethics because of the culture that they have been operating from. Most may not be seeing the need to perform in an ethical manner.
Describe different approaches to solving moral dilemma
The first entails coming up with a policy that would see to it that rules in place are those that promote ethical behavior. For example, in the event that an organization deals with people of different genders, there should be a policy that stipulates the manner in which the different genders have to behave. There should be guidelines for the course of action to be taken for any kind of misconduct. Training should also be in place to guide people on how to behave morally in any given business work environment while upholding integrity and honesty.
Examine how manages can incorporate ethical considerations in decision making
They can do the same by always reminding themselves of the importance to act ethically in the workplace from which they are operating. They should give room for any form of corrections that may be leveled by the junior employees. Ideas brought forth need to be considered without hesitation for as long as it has the potential to make the organization better.
Hill, C. (2008). International business: Competing in the global market place. Strategic
Sims, R. R., & Brinkman, J. (2002). Leaders as moral role models: The case of John Gutfreund
at Salomon Brothers. Journal of Business Ethics, 35(4), 327-339.
Steger, M. B. (2010). Globalization. John Wiley & Sons, Ltd.