What are the factors that have led to the increased globalization of business and increased the importance of the IHRM function?

Question

What will be an ideal response?

Answer 1

There are a variety of factors that have led to the increased globalization of business and increased the importance of the IHRM function. These factors include the following:
1. Imported products have increased competition in every nation. Global competition has increased dramatically.
2. Deregulation in the United States, Germany, and other industrialized countries has changed the domestic business environment in those countries. There has been increased market accessibility.
3. There has been an increase in international mergers and acquisitions.
4. There is an increased awareness of the existence of talented human capital in all countries of the world. This availability of talented individuals has helped the globalization process. Globalization means managing human resources around the world.
5. One cannot overlook the fact that one of the major factors—in fact, maybe the most important one—that has led to the increasing number of firms that have become international is the availability and cost effectiveness of computer technology. Computer technology has had a major influence on the acquisition and use of physical and financial resources, as well as greatly enhancing the marketing capabilities of MNEs. However, the most important impact of computer technology has been in HRM. Improved communications, worldwide recruiting and selecting, and better talent and performance management programs tied to career planning are only a few of the HR programs in MNEs that have been improved by the use of computer technology.