The Concept of Globalization in Business

Question: Explain The concept of globalization in business. Answer: Research Problem The concept of globalization in business has continued since ages, as long as 200 BC. Globalization, in modern business, is also a vital concept, especially for the business of import and export. Globalization aids to provide increased number of customers with cheaper costs of production. Even small businesses can benefit from globalization by outsourcing its production activities. Even import and export activities can strengthen the business by increasing the selling activities globally (Lambregts, Beerepoot Kloosterman, 2015). In todays world, most of the countries are open to global business concepts and promotes international trade that causes exchange of services and goods throughout national jurisdictions (Hamilton Webster, 2015). Although there has been absolute involvement of various companies in globalization activities, but there has been limited knowledge among them regarding its impact and activity. Qualitative analysis is not sufficient to locate and analyze the proble m. Therefore, quantitative analysis is necessary. There existed a gap in the analysis by qualitative research as it only provided information about the nature and depth of the issues, but it never really provided any information about the measurement and statistical precision that is very much required for addressing a hypothesis. Primary research has been carried only to discuss the problem, but there has not have been sufficient to quantitatively analyze the problem. For this, several researchers like Ching, Ghosh and Meschi have carried out research work in teams to study the effect of globalization in business for import and export. Their study examined several parameters quantitatively for a deeper understanding of the issues, on a global setting. The purpose of the research is to focus on the impact of globalization on import and export on the developing economies. The present assignment has been carried out to understand the impact of globalization on import and export activities for completion of the degree. Previously, a qualitative analysis was carried out to understand the concept of the impact of globalization on modern business, but it gave an overview of the concept, without any numerical data or quantitative analysis of the findings. Therefore, further research has been carried out to explore the research the problem with a quantitative methodology for a better understanding of the concept with numerical justifications. Ching et al. (2011) carried out a quantitative study where the researchers had utilized a panel data method for evaluating the accession of China to the World Trade Organization. Data of time series for different countries have been collected for construction of the growth path for analyzing Chinas growth history. Data analysis revealed that from the year 2002 to 2007, the economic growth rate of China was raised by 2.4% with the growth rate for export by 13% and import by 18.89% annually due to globalization. A quantitative study was carried out by Ghosh Sur (2015) and according to the research, globalization of technology, information and knowledge have brought about changes in the production process and organization nature. Globalization has enabled the Indian economy to allow foreign direct investment by the multinational companies and has promoted RD expenditure by various foreign industries. Data has been collected from the database of Capitaline Corporate for 14 industries of India engaged in manufacturing. Data analysis was done by multiple regression analysis and lo linear model. The study concluded by stating that globalization has helped to broaden the scope of import and export of goods and technology that has resulted in the economic growth. Meschi, Taymaz Vivarelli (2016) carried out a quantitative analysis and the study aimed at examining the relationship interlinking technological up gradation with globalization that affected wages and employment opportunities for both the workers, skilled and unskilled in Turkey. Data collection was done from a database that was on the firm level within a dynamic framework with Turkey as the developing economy. Data analysis was done by empirical analysis method by using a model named GMM-SYS for 15,000 firms. The study resulted in stating that change in technology that is skill based and trade for enhancing skill was due to globalization that increased employment and increased the gap of wage between the unskilled and skilled workers. Research Purpose Quantitative analysis will be done to understand the effect of globalization on the various parameters and how it helped for the growth of their economy and increased employment opportunities. The research would focus on determining how outsourcing by the developing countries and their internal globalization policies has placed them among the developed economies globally. The present assignment will involve data collection by literature survey from various databases and information will be gathered from the various study participants. These participants will be the industries from different countries whose growth rate will be measured that resulted due to the impact of globalization on business. Research Questions Investigate the economic benefits of globalization on the growth history of a developed economy from the study background and literature review. Analyze the impact of globalization on the technological advancement of a developing economy. Carry out an analytical study to demonstrate the benefits of globalization on technology and labor market, by analyzing the data from various resources. Quantitative Research Methodology For the present assignment, descriptive research methodology will be most suitable as it helps to describe the present status of the identified variable. Various data analysis methodologies like ANOVA and regression analysis will be employed in the study. The variable, in this case, is the impact of globalization that is different for different economies and gives different results for variable parameters (Creswell, 2013). Descriptive methodology helps to provide systemic information regarding the research and data analysis helps to build up the hypothesis. The descriptive methodology can help to address the research problem and answer the research questions of the present assignment. Quantitative research methodology employs numbers for testing hypothesis, the predictions are made by using the measured amounts, and the events are described using figures. Using the numbers enables the researchers to use powerful and advanced statistical tests for ensuring that the tests possess a statistical relationship and are not based merely on observations and descriptions. References CHING, H. S., HSIAO, C., WAN, S. K., WANG, T. (2011). Economic benefits of globalization: The impact of entry to the wto on china's growth.Pacific Economic Review,16(3), 285-301. Creswell, J. W. (2013).Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications. Ghosh, B. B., Sur, D. (2015). The Impact of Globalization on India's Technology Regime: A Quantitative Exploration of India's Organized Manufacturing Industries.IUP Journal of Applied Economics,14(2), 7. Hamilton, L., Webster, P. (2015).The international business environment. Oxford University Press, USA. Lambregts, B., Beerepoot, N., Kloosterman, R. C. (Eds.). (2015).The Local Impact of Globalization in South and Southeast Asia: Offshore Business Processes in Services Industries. Routledge. Meschi, E., Taymaz, E., Vivarelli, M. (2016).Globalisation, technology and the labour market: A microeconometric analysis for Turkey(No. 026). United Nations University-Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).