MGT 448 Discussion Questions Week 1 – 5
Discuss the following theory: The study of global business is
relevant if you work or plan to work in a large multinational
company, but it has little or no significance for individuals
who work in smaller national firms. Do you agree or disagree?
Defend your argument with at least two supporting
I agree that the study of global business is relevant when working for a large
multinational company; however, I disagree that it has little or no significance for
individuals who work in smaller national firms. This is because we live in a global
marketplace where both multinational and national companies face the globalization
of business. Today, boundaries no longer confine today’s contemporary
organizations. The global village enables companies like Wal-Mart to sell products
anywhere in the world; thus, national businesses with products like that of Wal-Mart
are also affected by globalization.
Moreover, an organization is mostly affected by globalization when its management
decides to enter into the global marketplace. Therefore, individuals who work in
smaller national firms tend to suffer the consequences of outsourcing, reduced pay
rates, and/or when their competitors all together shift their customer base to foreign
markets that are much more efficient and competitive.
In terms of the changing global environment, the spread of capitalism makes the
world a smaller place. Business has new markets to conquer. And well-trained and
reliable workers in foreign countries become a rich source of low-cost labor for
organizations everywhere. The implementation of free markets in Eastern Europe
further underscores the growing interdependence among countries and the potential
for goods, labor, and capital to move easily across national borders.
What technological advances in telecommunications and
transportation have influenced global business in the last
decade? How have these technological advances affected
regional economic development? What trends can be
anticipated in these areas? Would globalization have been
possible without these technological advances?
Technological advances, especially those related to information technology (IT) have
hand and continue to have a significant influence on global businesses in the last
decade, as well as, the effect on the way organizations are managed. For instance, a
local computer company in Long Island, NY are following in the footsteps of Dell by
designing its factory without any space for inventory storage. Moreover, many other
companies save millions of dollars by buying spare parts for its facilities over the
Internet. Both of those decisions and actions were made possible by IT. In addition,
IT has created the ability to circumvent the physical confines of working only in a
specified organizational location. With laptops, eFax solutions, high-speed USB
internet connections, Wi-Fi, and other forms if IT, organizational employees can do
their work from any place, at any time.
These technological advances have a direct effect on regional and economic