Strategic Management and Globalisation - Outline Example

Critics believe that factors that influence international trade undermine globalization (Haberberg and Rieple, 2007:8). The factors include tariffs, licenses, embargos, and investment and exchange control with a view of protecting trade in the international market. The above factors influence the entry behavior into the international market. Economic analysts have identified reasons behind the resistance to globalization. These reasons are environmental influences that emanate due to international trade, employment abuses, and perceived inequality of benefits derived from globalization. Many countries show concern about the treatment that their citizens get whenever they operate on the international scene. Conflicts that arise due to poor treatment may justify resistance to efforts towards globalization.

            Benefits derived from the global market are very crucial to globalization. The players in the international scene bring low-income countries and the developed countries. The transactions between these two groups usually differ. Economists have demonstrated that the benefits that developed nations acquire in the international market are higher when compared to low-income countries. This situation tends to justify the rejection of globalization.

The International Environment

            The trade-in in the international market usually takes place within and between Europe, the USA, and Japan. This trade depends on political and legal issues, which influence the relationship between these countries, cultural and social issues; shapes the products consumed by these nations, and the infrastructure within these countries. Infrastructure is very crucial because it dictates the operation of factors, which influence the international scene. For instance, transport networks and communication determine the ability to deliver products in the international market.

            International politics define the environment within which the international players would present their items. The political system dictates policies, which influence globalization. The legal system of a country would derive its policies from the nation’s political system. These policies would influence the economic climate because they regulate business operations on the international scene. Critics believe that political intervention may affect taxes levied against products in the international market. The interventional by various political systems are evident through inflation and currency rate control.

            Social and cultural issues are very instrumental to globalization. The beliefs and values in the international environment would influence practices such as consumer behavior, the expectation of the employees. The understanding of dynamism in the international culture would influence the approach applied by firms in the international market. Critics believe that cultural attributes observed in the international market depend on infrastructural development in a country (Haberberg and Rieple, 2007:12). For instance, an employee’s skill would depend on the education system of that country. On the other hand, telephone, electricity, or transport system would dictate the behavior adopted by various firms.

Organization Location in the International Environment

            The decision to introduce a product in the international market would depend on the characteristics that influence the product behavior in that location. Availability of resources that promote sustainability of the product or service in an international location is very essential. These resources include infrastructure, labor, and coordination of the value chain. Many firms gauge their competencies in the international market by evaluating their weaknesses and strengths. In most cases, firms consider linking with allies that will make their operation in the international market viable.

            The global strategy must address the homogeneous consumers’ tastes, positioning the firm in key markets, as well as competing favorably in firms' own country and internationally. Strategy in the international market should aim at expanding the firm’s viability. Local strategies developed by firms should focus on local product taste. This would influence distribution and marketing. The overall goal of the strategy is to minimize the cost associated with value chains. Transnational strategies create a balance between international and regional markets. However, firms must be able to meet challenges in the global scene. This attribute would force firms to integrate their activities to meet international organization configuration.