Challenges of Globalization in International Business

Libyan International Medical University Globalizatio n Challenges ID:3782 EMAIL: marwan_3782@limu.edu.ly BY: Marwan Fouad Eloshipi

Table of Contents 01 02 Introduction 03 Globalization challenges 04 Conclusion References 2

01 Introduction Definition of Globalization 3

Introduction Globalization It refers to the processes that promote world- wide exchanges of national and cultural resources. And it s the shift from a local workforce to aninternational competitive workforce. Globalization will make our societies more creative and prosperous, but also more vulnerable -Lord Robertson 4

02 Globalization Challenges 8 Common Challenges on Managing Globalization 5

Globalization Challenges While globalization has its advantages, it also have some challenges like: International recruiting Managing employee immigration Incurring tariffs and export fees Payroll and compliance Loss of culture identity Foreign worker exploitation Global expansion difficulties Immigration challengesand local job loss 6

Globalization Challenges International recruiting: HR departments face unknowns when recruiting across borders. First, firms creates a strategy for conducting interviews and thoroughly vetting individuals while they re miles away from headquarters. To ensure successful hires, HR teams must factor in challenges like time zones, culturalandlanguage differencesto finda good fitfor thecompany. Managing employee immigration: Immigration laws change frequently, and obtaining visas for foreign national employees can be extremely difficult in some nations. The United States, for example, is very strict in granting H- 1B visas, and Brexit, Britain s withdrawal from the European Union, has casted uncertainty on thefutureof immigration intheUnitedKingdom. 7

Globalization Challenges Incurring tariffs and export fees: Tariffs and export fees are challenges for their international operations. For companies looking to sell products abroad, getting those items overseas can be expensive, depending on themarket. Payroll and compliance challenges: Managing international payroll and ensuring compliance with changing employment and tax laws. This management task gets even more difficult if you re trying to manage operations in multiple markets. 8

Globalization Challenges Loss of culture identity: The global success of certain cultures caused other countries to imitate them. But when culturesbegin to lose their unique features, we lose our global diversity. Foreign worker exploitation: Lower prices do benefit many consumers, but it also creates tough competition that leads some companies to search for cheap labor sources. Some western companies ship their production overseas to countries like China and Malaysia, where low-labor laws make it easier to exploit workers. 9

Globalization Challenges Global expansion difficulties: For businesses that want to go global and discover the benefits of globalization, setting up a compliant overseas presence is difficult. If companies take the traditional route of setting up an entity, they need substantial upfront capital, Additionally, global businesses must keep up with different and ever-changing labor laws in different countries. Immegration challenges and local job loss: Many countries are tightening their immigration policies, making it more difficult for immigrants to find work in other countries. This rise in nationalism is mainly due to anger from the perception that foreigners fill domestic jobs or at companies moving their operations abroad to save money on labor costs. 10

Conclusion globalization is more than just an economic phenomenon. It is also an ideological and political weapon in an offensive against the international workers movement. The point of this offensive is to try to demonstrate that the market is all- powerful and thatneither national governments nor the working class can do anything to resist it. And even though it has a lot of benefits, but they come withchallenges thatare hard to resist. 11

References Globalization https://velocityglobal.com/blog/globalization-benefits-and-challenges/#section-3 (2022). Retrieved 20 April 2022, from https://www.omnipresent.com/resources/benefits- and-challenges-of-globalization Lord Robertson Quotes. (2022). https://www.brainyquote.com/quotes/lord_robertson_348240?src=t_globalisation What is Globalization? Examples, Definition, Benefits and Effects. (2022). Retrieved 20 April 2022, from https://youmatter.world/en/definition/definitions-globalization-definition- benefits-effects-examples/ Benefits and Challenges. (2022). Retrieved 20 April 2022, from Retrieved 20 April 2022, from 12

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