eversible. The reason is that globalisation per se is not the result of a planned activity by government or military power
a toward ever larger geopolitical entities. Nor is it the product of some growing ideological conformity on how we should live. It is, rather, the organic result of the virtuous cycle a, by which economic convergence and the diffusion of innovation raise standards of living over time. (Lewis & Harris, 1992, p. 114)
Globalisation is growing as far as finished products and components, as well as services are concerned. In many industries, there is a clear tendency towards globalisation. The probability is that this phenomenon will grow as the progressive reduction in barriers between countries and differences between consumers continue (Parker, 1998).
Market globalization, on the other hand, also depends on the behaviour of companies. For example, Japanese producers provided a significant impetus in this direction by redefining products on a world basis. To obtain competitive advantages in global industries, a firm must consider all producers, including those in other countries. Market integration means that choices in design, purchasing, and assignment of production and distribution tasks must all be assumed and coordinated on a global scale to gain competitive advantages (Muller, 2002).
The remainder of this section of the essay examines the effects of globalisation on two aspects of business practice. The first aspect of business practice examined is the effect of globalisation on management practices. The second aspect of business practice examined is the effect of globalisation on internal communications within a business organisation.
The Effects of Globalisation on Management Practices
In global industries competitive advantages derive in large part from the integration and coordination on a global scale of the various activities of the value chain, while in the so-called multi-d...