World Economy Essay Example | Topics and Well Written Essays - 1500 words

World Economy - Essay Example Certain pressures are being exerted on nation- specific factors by this global phenomenon, and left in its trail are transformations in the economy. Any organization that wishes to compete globally and maintain its relevance in the international scene must necessarily be involved in strategic planning. It is also a truism that there has been a rise in the importance of worldwide relations both in quantitative and qualitative terms. These global factors have led to an increase in the flow of information, knowledge, commodities and capital among nations. Liberalisation is another way of defining these shifts in the global economy, many economies of the world today have opened up their economic space rather than being conservative, as was the practice in the pre-globalization years. Governments are reviewing their economic system in line with today's global realities. In a bid to be relevant in today's world, alignments and re-alignments have taken place and continue to take place globally. The evolution of the European Union is one major reference point in this regard. It is important to note that in a capitalist economy, also known as a free-market economy; where the means of production belongs to private individuals or firms; there has been a dramatic change in the mode of operation of these firms. Ordinarily within a domestic economy, organ... Within a domestic economy, the kind of questions business organizations face are usually of the kinds listed below: 1.What products or services does the organization intend to sell 2.Where and how will the organization manufacture these products or services 3. Where and how will the organization sell these products and services 4. Where and how will the organization acquire the resources 5. How does the organization expect to outperform its competitors These fundamental questions have usually helped organizations in the management of a business. The process of answering these questions however becomes more complex when considered in the light of the realities of globalization. Many other factors must of necessity be put into consideration, factors such as varying languages, cultural diversities, differences in economic systems, financial market situations, fluctuations in foreign exchange, legal restrictions, low literacy levels etc. Despite these odds, more and more firms have adopted international management principles to properly position them in the global market place engendered by the ever-increasing trade liberalisation sweeping across the globe. Consequently, businesses are being developed to meet specific needs. Businesses today tend to centralize the authority and responsibility under one key individual thus providing a central point of control for the total flow. Under this arrangement, it is easier to look up to one central point for answers and action. This eliminates buck-passing. Furthermore, organizations today have imbibed personnel development. This is because it helps the personnel involved to gain familiarity of the global market place thereby increasing their opportunity for