Globalization Essay Example | Topics and Well Written Essays - 2500 words - 1

Globalization - Essay Example There is virtually no area of business that is not opportunistic for globalization if the organisation is focused on finding new market opportunities, identifying opportunities for exportation, and strengthening global business relationships with foreign organisations. Consumer behaviour characteristics, related to a variety of products produced both domestically and internationally, also play a role in defining globalization. These are cultural elements that are driven by social characteristics and the economic status of a region. As the need for raw products continues to grow, new procurement avenues and education regarding manufacturing drives globalization efforts. New trade agreements support globalization as businesses spread their knowledge in the form of acquisitions, mergers and other business partnerships in order to enhance competitiveness. By most practical definitions, globalization is taking a self-sustaining industry and extending it beyond borders to improve the socia l well-being of local and foreign citizens and improving the infrastructure that drives business activities in a variety of segments. Four drivers of globalization in Belgium One aspect associated with Belgium that drives globalization efforts is the local cultural dimensions that exist as related to business practices and social identity. Belgium, under Hofstede’s model of cultural practices, maintains a culture that is risk averse, known under this model as uncertainty avoidance. Belgium business leaders demand its internal political structure that drives the hierarchy to consist of clear choices with a strong rationale, expects senior leadership to produce detailed plans before launching any effort linked to finance, and develop contingency plans in the event of potential failure (Donnison, 2008). The Uncertainty Avoidance Index consists of Belgium business cultures that have little tolerance for ambiguity and demand a very rigid structure in most business objectives. This risk-averse culture drives globalization in a way that is unique from other countries with less uncertainty avoidance. Rather than extended business into multiple foreign markets, Belgium demands its partnerships to include very detailed schematics and plans before making an investment decision. Belgium businesses would rather maintain control over its organisational principles and financial decision-making, therefore it allows much more foreign direct investment directly into the country rather than seeking expansion to foreign territories. As one example, Belgium’s culture dictates a need for domestic controls, therefore when new business acquisitions or mergers are necessary in order to achieve higher profitability or improve domestic production capabilities, Belgium will seek out partners to bring their own knowledge and skills directly into the country. This has provided many opportunities for investors in a multitude of industries to enter the Belgium consumer and indu strial markets, without Belgium having to sacrifice its long-standing social and business principles. This has opened new market opportunities for foreign countries to expand their marketing and sales presence, along with industrial exports, thus improving supply chain, expanding international knowledge in management and technology, and