Impact of Globalization on Business Enterprises

Table of contents


The world is termed as a global village, especially since the 20th century when there is an advance in information technology and e- commerce. This period is also marked with government adopting a free trade doctrine. The technology breakthroughs has aided in speeding the rate of economy liberalization and creating fewer barriers to trade in the international level.

The advantages associated with globalization has being lauded by protagonists of corporate globalization, who embraces the ideology that says ‘ the more you let free markets rule, and open your economy to free trade and competition, the more efficient and flourishing your economy will be ‘. But recent observations have shown that all that glitters in the globalization engagement for some organizations are not gold. Thus, the problem associated with globalization on how it affects the human resource in small scale commercial companies, especially in developing countries will be the focus of this write-up.

Problem Of Globalization In Small Scale Commercial Organizations In Developing Countries

The identified problem with globalization associated on small-scale commercial enterprises in developing countries has to do with the inequalities these organization has with Multinational Corporation(MNCs); Where the small scale commercial companies experience labour lost and rigorous competition, which leaves them wit5h little room for development.

The Multinational Corporations dictate the market forces, thus stampeding the growth of these small scale companies.

Relevant Facts Surrounding The Problem And Prospect For Development

It is a well known fact that developments from globalization have a continuing effect on employment, working condition and industrial relations, not only in the commerce but also in contiguous sector and related activities as manufacturing, marketing, transport, finance, logistics, management, communications and data processing.

There are often high hopes in various countries that investment in commerce and the infusion of new commercial technology and kwon-how would result to encouraging economic growth, directly or indirectly generate significant number of new jobs, and contribute to improved working condition. However, these hopes are frequently balanced by contradictory concerns, mainly related to fear of an emergent global social order almost entirely dictated by market. (ILO, 1999). Globalization has brought prosperity and inequalities; this is acting as a test to the limits of collective social responsibilities.

According to public Services International (2005), globalization is characterised by the fact that the most powerful companies- the multinational Enterprises- think of the whole planet as their sphere of operation. They are able to shape national and global politics and policies to suit that end by making offers to many countries, that government cannot refuse and by their lobbying. Other companies which are not multinationals are forced to compete nationally with them and behave as if they are operating in a global market.

At a simplistic level globalization is assumed to be expressed as a natural progression of business organization which start with household level, moved historically to the village level ,and so on , till it gets to the national level. “The problem with globalization is that it is not just a natural progression, it stands to benefit some and make losers of others, the unequal power relationships within and between nations, states and other group in society mean that the judgement about whether globalization is good or bad depends on the nature of those power relationships.

” Multinational corporations do not just influence national government, but they have very close relationship with many inter-government organizations. This gives them advantages of wining contracts from International organizations like World Bank, IMF etc. this place these multinational corporations in a better position to enjoy most benefits accruing from the globalization process. Globalization also effects labour and human resource in commercial firm.

Due to globalization the growing interdependence of markets, increasing proportion of the world labour force is engaged in activities that are linked to international trade and capital flows. This makes market to be interlinked. This has resulted to increased foreign take-overs through mergers and acquisitions, resulting in modern distribution circuits associated with new technology innovative management styles, different approaches to work and new employment arrangement.

This tends to destabilise the traditional employment arrangement in developing countries and thereby leading to job lost and fear from job insecurity. This problem can only be turned around to the advantages of the small scale companies, when they get the same opportunities available to these multinational corporations and cheap raw materials and labour cost. Also if the various governments gives them rebates in tariffs when exporting and importing their goods and raw materials, this will place them in a better position to compete and share the advantages available with globalization.


For the problem of inequalities and the disadvantaged position of small scale commercial organization in developing countries be solved, it is recommended that international organizations like ILO, should put in place guidelines and measures that will make multinational corporations give room for small scale commercial organisation, operating in national level, to thrive in their operations with the existing traditional labour arrangement in place.

Also, individual government in developing countries should formulate policies to protect their indigenous small scale industry, so that their countries shores will not be a dumping ground for the Multinational Corporation. This will make room for these small scale companies to thrive and develop, thereby creating a good ground for competition them and then Multinational corporations.


  1. ILO (1999), “Human Resource Implications of globalization and restructuring in Commerce”.Tripartite meeting on the Human Resource Implication of Globalization and Restructuring in Commerce. Geneva. Public services International (2005), “Globalization and Public Sector Trade Unions” http://www. world-psi. org/globalization/ (9th Dec. , 2005).
  2. Richard, W. M. & Jose De La Torre (2001), “Introduction to the Symposium E- commerce and Global Business: The Impact of the Information and Communication Technology revolution on the Conduct of International Business. ” (Journal of International Business Studies, vol. 32, issue 4. p617+).

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyStudyWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business and administrative studies
great job as always
Customer 452773, February 26th, 2023
Criminal Justice
This has been the greatest help while I am recovering from an illness. Thank your team so much.
Customer 452671, May 2nd, 2021
Social Work and Human Services
Great work I would love to continue working with this writer thought out the 11 week course.
Customer 452667, May 30th, 2021
Human Resources Management (HRM)
excellent, great job
Customer 452773, June 19th, 2023
10th grade English
very good
Customer 452773, March 26th, 2023
Business and administrative studies
Thank you
Customer 452773, March 19th, 2023
Leadership Studies
excellent job
Customer 452773, August 26th, 2023
excellent job made a 93
Customer 452773, March 22nd, 2023
Thank you!!! I received my order in record timing.
Customer 452551, February 9th, 2021
Business and administrative studies
excellent job thank you Your Score 166.25/ 175- A 1. Current Culture 15% of total grade 18.37 Criterion "1. Current Culture" has textual feedback Criterion Feedback I see interesting points, though, in general they are not about the culture.
Customer 452773, June 4th, 2023
Business and administrative studies
excellent work
Customer 452773, March 12th, 2023
Leadership Studies
awesome work as always
Customer 452773, August 19th, 2023
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp