BUS 475 Week 2 DQ 6 -
Chapter 5 was essential because it discussed one of the most thriving aspects of business, globalization. "Globalization refers to the strategy of pursuing opportunities anywhere in the world that enable a firm to optimize its business functions in the countries in which it operates" (Pearce, 2013). Because of globalization companies and consumers relish various advantages including increased product variety, access to various markets, improved understanding of contrasting countries, increased availability of resources, wider investment opportunities, and competitive pricing. Although these advantages are encouraging for companies to pursue globalization, it is crucial for the company to understand the complexities that may arise with globalization. "Globals are restricted in their selection of competitive strategies by various regional blocs and economic integrations, such as European Economic Community, the European Free Trade Area, and the Latin American Free Trade Area" (Pearce, 2013). A second complexity for globals is that they face various external environments such as cultural, economical, and political, which arises various controversial issues. A third complexity for globals is that interactions and relationships can become easily strained because of contrasting social and economic conditions. A fourth complexity that may arise for globals is strained communication. "Geographic separation, cultural and national differences, and variations in business practices all tend to make communication and control efforts between headquarters and the overseas affiliates difficult" (Pearce, 2013). The fifth and last complexity that can potentially arise for globals is extreme competition due to the various industry structures within countries. Class, are there specific ways that these complexities can be reduced or avoided? Or do you believe these complexities are inevitable when pursuing globalization?