The modern world can be viewed as an extremely globalized one because of the evolution of different means of transport and the development of technologies that provide multiple opportunities for improved cooperation. The given factor becomes the major determinants of the majority of processes that are important for the evolution of society. For the business sector, globalization means the increased importance of the global economy and the emergence of multiple opportunities for further growth. Multinational corporations benefit from the trends in international relations and generate significant revenues due to the employment of effective strategies. At the same time, smaller firms and organizations might also take advantage of the fast development of the global economy as they acquire an opportunity to find partners in distant areas and improve their functioning by entering new markets. In such a way, regardless of some fears associated with possible global crises and the lack of stability, the global economy can be viewed as the basis for business expansion.
One of the major arguments justifying the beneficial impact of globalization and the global economy on business expansion is the emergence of multiple opportunities for faster growth. Analyzing the existing international market, and its trends, specialists agree in the opinion that the existence of numerous partners for cooperation is one of the basic aspects needed to generate a competitive advantage and create the basis for the fast development of a particular unit (Inomata et al., 2019). For instance, the ability to cooperate with Chinese or Indian partners for a firm headquartered in New York provides new options for partnering with clients and providing them with unique services or products (Zimmerman, K. (2017). At the same time, the high degree of globalization and global trends can be viewed as facilitators of positive change presupposing the continuous experience exchange and generation of new, more effective business models and strategies that will be able to affect broader populations and create the basis for the further expansion. From this perspective, the global economy offers an endless amount of ways to evolve and become more effective.
Another essential factor justifying the positive impact of the global economy on business expansion is the improved access to different markets. Any fast-growing business faces the need for new market outlets that will be able to support its growth by providing access to new clients and opportunities to generate a stable income (Meyer, 2017). The internationalization of economies increases the dynamics peculiar to the business sector in general (Meyer, 2017). It means that the emergence and growth of companies focused on the global market trigger the appropriate rise in companies in other areas as they acquire possible partners and opportunities for beneficial cooperation (Paasschen, 2015). Under these conditions, the further development of global trade should be viewed as a positive factor that might facilitate multiple industries and business sectors. Moreover, the emergence of new suppliers and manufacturers can also have a positive impact on economics in different states, which will be followed by the corresponding rise in the number of people involved in international trade (Zimmerman, 2017). In such a way, the given factor justifies the idea that the global economy can be viewed as the basis for business expansion.
At the same time, there is an opposite opinion stating that the globalization and internationalization of companies result in the extreme sophistication of supply chain management, which demands additional resources, and might precondition the failure of the firm that accepts the decision to run globally. However, this idea can be refuted by the fact that the globalization of the economy is followed by digitalization, which is viewed as one of the forces promoting internationalization and the emergence of new giant corporations (Dudukalov et al., 2016). Under these conditions, supply chain management can be improved by using appropriate innovative solutions, software, and hardware that are designed with the primary goal to avoid mistakes in complex operations and guarantee a high level of effectiveness and stability (Dudukalov et al., 2016). The existing approach to global supply chain management benefits from the corresponding growth in scientific solutions that are expected to make international management more effective and avoid mistakes in the future. In such a way, the global economy remains an important source of business and growth and, at the same time, the continuous development of technologies.
Altogether, the global economy is the basis for business expansion, and several factors prove it. The emergence of new opportunities for evolution that comes from internationalization facilitates the rise of different business sectors and helps to generate additional income. Moreover, the chance to find partners in different regions and engage in cooperation with them is also a serious advantage that might help firms to evolve. Finally, the recent advances in technologies increase the effectiveness of management and ensure the decreased number of mistakes caused by human factors. For this reason, the high degree of globalization peculiar to the modern world should be viewed as the perfect opportunity for the rise of business, and it’s becoming more important.
Dudukalov, E. V., Rodionova, N. D., Sivakova, Y. E., Vyugova, E., Cheryomushkina, I. V., & Popkova, E. G. (2016). Global innovational networks: Sense and role in development of global economy. Contemporary Economics, 10(4), 299–310.
Inomata, S., Kurose, M., Nakatomi, M., Urata, S., & Ota, M. (2019). Roundtable discussion on a rules-based global economy. Economy, Culture & History Japan Spotlight Bimonthly, 38(5), 18–24.
Meyer, K. E. (2017). International business in an era of anti-globalization. Multinational Business Review, 25(2), 78–90.
Paasschen, V. (2015). Globalization from a business leader’s point of view. Brown Journal of World Affairs, 22(1), 175–189.
Zimmerman, K. (2017). Economists see perils in global economy, potential at home. Fairfield County Business Journal, 53(3), 4.