How manager can enjoy the benefits of globalization despite the costs

It is therefore imperative to consider the costs of globalization and explore by what means a manager can benefit from using globalization tools in the business. Some of these costs are discussed below, Compromising moral standards; some organizations have been forced to compromise their moral standards in some region in order to survive. The effort of this has led to some talented and skilled workers leaving organizations because they cannot withstand the morals drifts they are supposed to take for them to prosper. It has been hard for the top manager to convince the workers to stay on board and thereby demanding top managers recruit new workers in the organization. The new workers have multiple effects on the organization’s operation.

Some of these costs are the standards of infrastructure, which will require the offices and premises to meet the world standards. The product quality when substandard will not fetch the global market. This will mean that the firm must upgrade and standardize their production to fit the global demand. Most of the time this has led to loss-making (Berger Gerlinde and Inara 169) High promotion cost; for a firm to remain competitive in the global market and become or remain a market leader there must be a very high investment in marketing. Sometimes, a firm makes sales at a lower price so as penetrate the market which may consequently lead to a loss. The problem here comes when a firm has just completed adopting the current technology then technology evolves.

It becomes more like gambling. Compliance with regulations; Some countries have difficult regulation to comply while others have unstable and everchanging legal system. As a result, many firms find it difficult to operate in those countries. Such has led to a loss of customer and lead to reduce firm’s revenue. Unlike the domestic firms where the employers can work with semi-skilled workers, the global workforce should be a registered professional recognized by the home country and even sometimes registered with international bodies. Hiring one has proved expensive to most global firms. Despite all these costs of globalization, firms can still operate in the global market and expect to make a profit and even remain or become a market leader. There are some tools that can be used by global firms to enable them to remain relevant to the market today and compete favorably.

These tools are discussed below; Employees training and management development; this is a powerful tool that managers can use in whichever countries they are operating from. Management contracts; the cost of hiring workforce has proved to be expensive. However, international business should not give up. They can hire firms in the countries they are operating to manage their businesses. Most of these firms have already developed the capacity to manage businesses. They usually have a qualified and experienced workforce. This team can also help in coping with the most effective software and high standard website for the firm. It can also train all the workers on how to use technology so that the workers can appreciate the goodies that come with new technology (Schultz 201) Coming up with firm’s ethical standards; Because of the pressure of the culture of different countries, a manager should not be silent on this.

Some of the cultures affect the moral standards of the society and a firm may be at risk of losing its corporate image. Many people have a negative attitude towards firm’s which interferes with their good part of the culture. For example, the dress code among Muslims dominated nation should be different from a Hindu dominated nation. Minimum wages affect immigration of people both internally and externally. When wages are increased in one country, people always find a greener pasture. This may mean people migration from their countries to the country where there is an increase in the minimum wage. Consequently, the place or country becomes highly populated. High population increases the demand for products and therefore promotes trade. This is because every cost has it can be a good investment opportunity for the business.