Discuss the issue of business globalization and why it is so important.

Question

What will be an ideal response?

Answer 1

The world appears to be moving more toward protectionist trade policies. However, the degree of globalization is continuing to rise based on the most recent available data. At the same time, evidence shows that some developed countries are retrenching when it comes to international operations. Governments continue to pressure business to reshore some of their operations. But even with retrenchment, the World Trade Organization (WTO) expected merchandise trade to grow at 2.4% in 2017. So, while companies may retrench some jobs back to their home countries, it appears that some production and service jobs will continue to be moved out of home countries to other locations around the world to take advantage of capital cost savings. This means that managers, including HR managers, are going to have to continue getting more capable in training and preparing employees for international assignments.