Opportunities and Challenges for Businesses With Globalization

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Global manufacturing outsourcing has been increasing for several years. it already has been adopted in the apparel, electronics, and automobile industries. The economic benefits have been quantified extensively. and, although sometimes challenged, the financial initial analysis is compelling given the less expensive skilled and unskilled labour costs in countries like China, India, Mexico, and Eastern Europe versus the U.S. If we take Information Technology, it has also gone global. For instance, when it was developing the highly successful iPod, Apple Computer worked with up to 10 firms and independent contractors around the world to find the right ideas and components. Even during the product design and customer requirement definition phases, it used two countries: Japan and the U.S.(5) From the above it can be seen that the globalization helps the organizations to expand its manufacturing and production all over the world, to find out a new business horizon. But these organizations, in fact, face many challenges in their business affairs. Apart from continuous and drastic cost reduction or constant innovation, to effectively tackle these pressures and constraints, and to profit from the opportunities created by globalization, the following implementations/improvements may be helpful. The organizations need to develop new business strategies which combine innovation, research and technology, a highly skilled workforce and their overall operational effectiveness in ways which competitors find hard to copy.