The increased competition in the economies has pushed many firms into the global market. The global marketplace encompasses an open economy of countries where shifting of technology and labor can easily be undertaken. Several impacts derive from the global marketplace participation and these include labor mobility, transfer of technology, availability of a wider market, improved products and increased competitiveness among firms. Thus, a firm that deals in Information Technology like your company is encouraged to invest more in the global marketplace because of the benefits that emanate from the venture. However, the global marketplace does not only result in positive impacts to a workplace, as there are problems that need to be considered by the firm. These include culture incompatibility, negative dynamics, and communication barriers. Therefore, this report outlines the benefits that the global marketplace has in the workplace and touches on a few problems that might arise.
Firstly, the global market facilitates labor mobility in that, when a firm has invested in various countries or has branches in some different parts of the globe it is easy for its employees to be shifted from one part branch to another. This is because it is easy to find a position for an employee in another branch especially when it concerns the promotion of that employee. Labor mobility is also facilitated because a company that invests in many countries might need personnel in one of its branches from time to time. Thus, the global marketplace ensures that labor mobility is possible.
Availability of Manpower
The second impact of the global marketplace on the workplace is that ensures the availability of labor. The global marketplace has a variety of labor available given the trends in graduations that take place severally in a yearly basis. Thus, a firm in the global marketplace can get the best labor competitively. This derives from the fact that the firm can advertise for a job opening in many countries and sure enough, many people will respond to the advertisement. Thus, the global marketplace has a positive effect on the workplace as it avails a wide range of labor, which can be cheap or skilled.
Transfer of Technology
Thirdly, the global workplace facilitates the transfer of technology. This is a positive impact because firms in the global market can import a technology from another country, which will ensure that the company performs well than its competitors who rely on local technologies. The transfer of technology is also essential for the workplace because it reduces instances of outsourcing other companies to complete a certain task for the firm as this impact negatively on the profits of the company.
The global marketplace impacts on the business positively as it ensures the production of quality goods. This is so because a company has to compete favorably in the global marketplace; thus, it has to ensure that it produces good end-products that will appeal to customers around the globe. In addition, the global marketplace results to production of quality goods or products by the because it has the potential to compare the goods it produces with those produced by other competing companies in other countries, which inform the company’s production process. However, it should be noted that a global marketplace also avails a few problems that have to be considered closely by a firm. The problems are outlined below.
This problem results especially in instances when a firm has ventured into a new market blindly. Venturing into a market blindly means that a firm did not do thorough research before venturing into a market, which results in cultural shock because members of that market might not be familiar with the goods or services that the company is selling. Thus, it is essential to carry out a thorough research before venturing into a market.
Negative dynamics are also a problem that might result from the global marketplace. Notably, the global marketplace can result to negative dynamics such as stereotyping, ethnocentrism, and cultural clashes. These three are detrimental to the smooth running of an organization because they escalate the tension amongst workers. They also slow down the flow of information in an organization; thus, affects the normal running of activities in the firm.
Lastly, basing on the fact that the global market avails labor from all parts of the world, this means that people who speak unique languages will be working together. This is a problem that needs to be closely monitored as some people might want to make their language appear superior to others. This means it is advisable if the company laid down rules regarding the language that people in the organization are supposed to observe.
In conclusion, the global marketplace avails several positive impacts on a firm. These include labor mobility, wider market, availability of both skilled and unskilled labor, transfer of technology, and production of quality products. Despite the positive effects of the global marketplace, several problems might arise that need to be closely monitored. These include the escalation of negative dynamics such as ethnocentrism and cultural clashes, communication barriers, which can result to a language barrier within the organization, and lastly, cultural incompatibility. This deals specifically with the products that firm deals with. Cultural incompatibility happens when a firm supplies products to people that do not embrace such products. Thus, it is essential to weight the above points as your firm prepares to venture into the global marketplace.