Business Essay Example | Topics and Well Written Essays - 4500 words

Business - Essay Example One of the primary aspects of how globalisation impacts international business is the inter-dependency of international trade. Whereby historically economies were limited to geographical boundaries, having economic systems wholly contained within a national infrastructure, today with the presence of global product trade, it is altering the global economy. For instance, this can be witnessed in China, a country that maintained a very immature capital market until the 1990s as a result of the historical command economy that was centrally controlled by Chinese government. As China’s economy began to expand as a result of government deregulation, GDP and exportation became a favourable activity to ensure rapid economic growth. As a result, in order to become competitive with the rest of the developed world, it was necessary for businesses (once dominated by government) to adopt capitalistic and neoliberal ideologies which allows for capital assets and production systems to be whol ly owned and managed by private business leaders (Degen 2008). As a result of this change toward capitalism in a previously Communist nation, it became more inviting for foreign businesses to establish joint ventures and strategic alliances with growing Chinese companies to gain a foothold for market entry. Government in China no longer owned majority equity stakes in businesses which ultimately led to opening new competitive opportunities for smaller firms that could not previously compete with government-controlled business group conglomerates. As a result, Western management philosophy (as one relevant example) became entrenched in Chinese businesses with an emphasis on human capital development and organisational culture development rather than operating under tightly-controlled and centralised hierarchies of authority. Adopting a more