How Globalization of Commercial Operations Impacts Local Settings


Globalization started in ancient antiquity, with the advent of increased use of the wheel inland transportation and ships in overseas exploration and trading. Globalization in modern times grew about the significant improvement in communications such as satellites and the internet, and modes of transportation such as bulk shipping containers and cargo airplanes. “By the 19th century, European conquest and imperialism interwove Western economies with others worldwide more deeply than ever before … while the world economy itself became almost completely devoted to capital accumulation” (When Did Globalization Begin?, no date) Thus, globalization in modern times grew in relation to the significant improvement in communications and modes of transportation. The needs and wants of a bigger society grew with population while resources dwindled. Such condition catalyzed the expansion of trade, initially with adjacent villages, and now the almost usual half-way-around-the-world import and export. Even the advancements in communications have led to revolutionizing the power of media in everyday life. “Early economists would certainly have been familiar with the general concept that markets and people around the world were becoming more integrated over time.” (When Did Globalization Begin? no date). Notice presently how even just verbal speeches, terrorist threats or elections in one country could sway global stock trading.

“Globalization of markets refers to convergence in buyer preferences in markets around the world.” (Globalization A Look At This Chapter, 2011). Globalization reduces marketing cost. A global consumer product such as shampoo may be sold the same, as it is, in different countries except for the packaging design changes to match the language spoken. “Companies can achieve further cost savings by keeping an ad’s visual component the same for all markets but dubbing TV ads and translating print ads into local languages.” (Globalization A Look At This Chapter, 2011). Globalization creates new marketing opportunities.   Seventy percent of the US population are hooked on e-commerce internet surfing while China has “21.97% (640 million) Internet users” (Internet Statistics & Facts for 2016, 2016).  It is evident that there is a huge potential for internet business expansion in China for online search engines like Yahoo and Google. Inevitably, what is seen is that there is a significant impact of globalization on commercial operations. Even in the local setting scale, globalization’s effects are evident, which is what this paper will attempt to explore.


While globalization is best reflected in the way a business expands internationally as it establishes links and recognition from various countries, it must at one point primarily impact the local setting. Commercial operations start locally before it grows and branches out to different levels and aspects of the business. It goes without saying that commercial operations begin within the local context and starts with what interests the surrounding consumers. Businesses usually design commercial operations based on these interests. Strategically, businesses move more productively in an environment where they can fluidly and more freely provide services. For example, call center agents who work locally cater to an international customer or consumer base. These local employees will have to adjust to the global market to be able to effectively provide customer related services to clients from other parts of the world.

Another impact of globalization on local settings is with regards to the rising competition to gain customers and markets. The shift is aligned with the fact that for multinational companies to sustain itself and earn significant revenues, they would now have to cater to broader markets and consumer needs. “Whereas only a handful of multinational companies dominated international trade a couple of decades ago, today companies from all parts of the world are participating in worldwide business” (Cavusgil, 2015). An example of this Mondelez, the makers of well-known products such as Oreo, Kraft cheese, Cadbury, and Toblerone. From being known as Kraft Foods Inc., a business that originated in North America, it changed its name to become an international company that provides different types of foods to different consumers. It now operates and serves in over “160 countries” (Mondelēz International, 2001).

The third impact of globalization on local settings is the rise of international businesses. Given that globalization has created an increasing awareness and demand for products and services that would allow them to enjoy those that were once only afforded locally, many organizations have seen potentials rise from the idea of expanding not only locally but in the international range. Such is the export-import business. This is seen in “transactions that are varied and more complex: contract manufacturing, franchise operations, countertrade, turnkey construction, technology transfers, international strategic alliances, and more” (Cavusgil, 2015). For instance, franchises of Mc Donald’s fast food chain and the Chipotle Mexican Grill restaurant chains are among the many businesses that moved from locally serving a market within the United States to expanding to different parts of the world.

The fourth impact of globalization on local settings can be seen in how technology is rapidly used and spreads in the market and users. If a business is to be exposed to its target market, innovation and technology would have to play a huge part so that it creates a position for the product or services. In local settings, an example can be seen in how for instance, a Starbucks coffee shop is commercialized through Instagram or Twitter through posts from different users. Thus, businesses fin ways to give that opportunity to the consumers. Some cafés provide free Wi-Fi access, which is a way for most companies to sell without spending so much on advertising.

Finally, “borrowing-financing activity has become worldwide as well” (Cavusgil, 2015). Local settings need to competitively create an advantage for their own business, and one of the most preferred and ideal solutions is to take the business to a global level, which is why the idea of borrowing and lending has also become one of the effects of globalization to the local environment. Many small businesses hope to achieve such a position in the market that realizing their potential meant being able to compete and serve a bigger scale of market needs.


In a nutshell, it can be seen that globalization affects all aspects of the business. A starting point for that impact is seen in the local setting where businesses always start. The increasing demands of the global market are what forces many businesses and organizations to find opportunities and use these to keep themselves relevant to the market while at the same time discovering growth opportunities that will allow businesses to design a positive company performance and establish global linkages. The impacts presented in the local settings suggest positive efforts to allow companies to move towards adapting to a dynamic environment. Globalization does not exclude anyone as it greatly affects people from all aspects. Technology and innovation will play a critical part in the globalization process.

While it does not diminish the fact that many domestic businesses will face issues of trying to maintain its business by changing the activities of the business, many enterprises will have to also face the fact that adapting to the change is the only way to go if they intend to keep themselves relevant for the consumer and receive profits.



Cavusgil, T.S. (2015) ‘Indiana journal of global legal studies globalization of markets and its impact on domestic institutions’, Indiana Journal of Global Legal Studies, 1(1).

Globalization A LOOK AT THIS CHAPTER (2011) Available at: (Accessed: 27 December 2016).

Internet Statistics & Facts for 2016 (2016) Available at: (Accessed: 28 December 2016).

Mondelēz International (2001) Our corporate Timelines. Available at: (Accessed: 28 December 2016).

When did globalisation start? (2013) Available at: (Accessed: 27 December 2016).

When did globalization begin? (no date) Available at: (Accessed: 27 December 2016).

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