Sociology

How is any organization or group affected by Globalization How does this affect its future
Globalization is the increasing interaction across national boundaries that affect many aspects of life economic, social, cultural and political. As such, globalization narrowly refers to the growing economic interdependence of countries worldwide. This includes increases in the international division of labor caused by swelling international flows of FBI foreign-based investment, accompanied by an increasing volume and variety of cross-border transactions in goods and services, international capital flows, international migration and the more rapid and widespread diffusion of technology.
                                                                   
The increasing interaction of the world affects the organizations and groups both positively and negatively. The direct impact of globalization is enlarged consumer base and bigger competition for organizations. These impacts help attain increased efficiency (through the achievement of economies of scale, increased production leading to lower per unit cost). Globalization has effected organizations at every level. For instance it has helped them have access to cheaper sources of finance, better and diversified work culture, newer technology and more specialization. It is not that the impact is only all positive, globalization pose a threat to the smaller firms and organizations in the lesser developed countries because they are less able to compete with the multi-national giants. They face a threat to their survival but their existence in large numbers suggests otherwise.

Specialization is considered to be one of the most important advantages of globalization, this helps organizations produce goods in which they have comparative advantage (lower opportunity cost of production), and this facilitates organizations in becoming more cost and price effective. Globalization also makes organizations more socially responsible (awareness and following of corporate social responsibility). This is because of the charters and organizations like world trade organization and UNO (United Nation Organization) which set out rules like environment protection etc for the companies which they are obliged to follow.

Organization to survive in the global world in future have to be innovative , creative, flexible and fast to respond to the growing changes. It has to keep up with the changing world demands and environment. If the companies dont keep up the pace they would be out of business because future is bringing more cut-throat competition. It would be as Darwin said the survival of the fittest. Globalization not only effects the consumer side of the chain , it also helps companies have greater access to better  raw material and technology which currently and even more in future will lead to higher quality. Marketing and focusing on demand would become even more important. Stronger globalization will mean wider use to services like internet. Outsourcing, trade, mass marketing, mass communication, global supply chains, constant employer training will all become important concepts for the organizations.

Globalization is also likely to lead to wider set of laws like labor law, certain quality standards etc which current organizations in lesser developed countries tend not to follow. Its likely that globalization in future will lead to a more uniform and positive set of rules for organizations.