Globalization Challenges. Business sample

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Despite the evident advantages, the modern world faces numerous challenges of globalization nowadays. The polarization of the world into the developed and developing countries has created a gap in the standards of living of the world population. It is unfair that some people implement and enjoy state-of-the-art achievements of the modern science in their daily life while others suffer from the inability to buy food and get enough drinking water. In my opinion, globalization has increased the dimensions of poverty. Poverty has become one of the international concerns in business and social contacts. The readings gave me the insight that the problems of insufficient income have led to the destruction of cultural values and links.

I believe that the culture has a strong preservation potential and helps the ethnos survive and develop in the conditions of high competition of the global markets. The values and mentality aspects of the international business have created the new demands and stipulated the factors determining the success of the economic outcomes. I have learned that the leading companies in the international businesses have monopolized the successful sectors of the economy and regulate the prices on the world market by means of relevant financial mechanisms. However, the international business needs cross-cultural intelligence and implementation of universal behavioral strategies in conducting the projects.

I find it meaningful that the international business rules adhere to the laws of market and competence while the global challenges stipulate the necessity of ethics and firm moral principles. The paper underlines the importance of the concepts of poverty, environment protection, and socio-cultural intelligence skills in conducting international business.

The Concept of Poverty in the Global Context

From the readings, I have learned that nowadays, the inequality between countries is increasing because globalization supports mainly highly profitable corporations. The institutions necessary for the provision of adequate education, health, and social security do not have time and sources for the rapid development. I find it meaningful that the understanding of poverty is either of relative or absolute category. The first understanding refers to the developed countries with well-organized system of welfare and governmental support. The second one reflects the conditions of survival in the countries of the third world. The information about the difference in the income proportions in the developed and third world countries was a revelation to me. In the 21st century, there are still numerous suffering people because they cannot satisfy their basic needs.

I believe that the main danger of dividing the world into zones of prosperity is in the fact that the global transformations enhance absolute poverty. The problem causes such global threats and risks as terrorism, transnational crimes, and human trafficking. Social tensions generate underdevelopment while poverty pushes politicians and governments of poor countries to seek internal and external enemies, create conflicts, and increase the risks for legal international business. The scope of the problem makes all the global states vulnerable, regardless of their size, wealth, or location. I realized that I had a chance to lead a modest life and shorten my needs with concern about the less lucky people of the third world.

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I have realized that globalization does neither bring the global integrity nor smoothes the internal contradictions of the absolute poverty. On the contrary, it reinforces and exacerbates them. Miserable existence, poor sanitation, and health undermined by malnutrition make poor countries an easy prey to various infectious and epidemic diseases that pose dangerous threats to rich countries also. Moreover, people experience and spread violence and aggression, which seem to be a logical outcome of their dissatisfaction.

The reading made me think about the inability of the poorest states to get out of the poverty on their own. This situation has led to their dependence on the guidance from the developed countries and mutually coordinated effort. The limited resources, weak institutions, and poor management cannot successfully fight against poverty or even hunger. One of the main forms of such assistance has become the international development funding of the IMF. It is based on the idea that the main objective is to improve human life by expanding the choices in social life. That goal determines the foreign and domestic policies of developed countries, which should provide and implement operational tools for eliminating the poverty in the developing world.

More recently, it seemed that the monetary fund of the human community is large enough to remove the social risks associated with the problems of poverty. They can include epidemics, alcoholism, and drug abuse in the population, ethnic and religious conflicts, extremism in its various manifestations, local conflicts, massive forced relocations, and other social phenomena caused by poverty. However, the world global crisis has called into question the basic possibility of the positive outcome. It was another revelation to me; the humanity does not control the effects of the poverty levels increase.

I think the global economic crisis has a variety of causes and explanations. Inadequate credit policy and permissiveness, which allowed creating the dangerous financial instruments, as well as the lack of control by the state, are among the primary reasons. They reflect the systemic contradictions of the capitalist system, problems of supply and demand, and overproduction of commodities.

It becomes clear that many scientific approaches and theories no longer find their confirmation and are invalid in practice. Qualitatively, the increased uncertainty in the development of socio-economic processes determines the overall decline in the effectiveness of forecasting and risk management methods. The estimation of investment risks, as well as strategy development, is increasingly becoming a performing art. Practical implementation is not possible without the use of specialized information resources and computer technology.

Understanding of the global dimensions and sources of poverty can contribute to the efficient management and organization of the volunteer works. There are numerous people in the world who have no idea about the social security and welfare in the industrialized reality. I want to prove that every person has the right for a decent existence and the right for an opportunity in life regardless the place of birth and income.

The Concept of Environment Protection

From the readings, I have learned that the awareness of environmental problems has led to the greening economic development in the industrialized countries. The cost of state monopolies spent on protecting the nature has increased, and the international business tends to launch ecologically clean industries and technologies. At the same time, the problem of the environmental safety is closely linked to the achievement of economic security. The extensive destruction of the natural support systems and deteriorating environmental conditions pose a threat to the national and international security. I have realized that now these problems compete with the traditional military threat.

A critical assessment of the readings showed me the other side of the global environmental concerns. Nowadays, the producers of the developed countries locate their facilities on the territories of the third world countries, in order to avoid strict ecological regulations in their native states. The problem of the developing countries’ pollution with wastes or unhealthy industries from the developed world becomes more urgent and controversy. The principals of such enterprises employ unethical means of leading business in order to preserve their profitability. I think that the failure to meet the newly arising demands for nature protection lead to nowhere. This fact has changed my understanding of the global environmental problems.

The problem requires the advanced international cooperation based on the common criteria and some accepted universal approaches. In my opinion, the existing international environmental organizations need more dynamism and creation of a new set of protective means and legal regulations. It is necessary to take appropriate financial framework and provide reasonable national rights in the regulation of the environmental protection processes.

In reflecting on the causes of the environmental problems emergence, it is wise to point out the evolving global community and the integrity of the modern world. These aspects provide deep economic ties. They strengthen the political and cultural contacts and the latest means of mass communication. In conditions when the planet becomes a single house for humankind, many contradictions, conflicts, and problems can outcome the local limits and acquire new international meaning.

The transforming activity of human power and its consequences, both creative and destructive, are now comparable with the most formidable forces of nature. Having brought to life the huge productive forces, people cannot keep them under their reasonable control. The level of social organization, political thinking, and environmental awareness, as well as spiritual and moral orientation, are still very far from the requirements of the era.

All the problems of the world are economically interdependent. I think solving the nature protection problems is impossible without managing the economic issues including the food problem and safety concerns. The products and security problems, in turn, reflect the social tension in the geographical area of the third world. The specialists in all areas should cooperate to find a natural and effective solution to these problems.

In my future career, I will oppose the location of the harmful and environment violating technologies in the developing countries. It has become a meaningful perception of the concept of environmental protection.

Cross-Cultural Intelligence Skills

I believe that the current world economic crisis is the result of a shift in the social and values space. The cultural incompetence, absence of tolerance and pluralism, as well as inflated egos of the top managers in international business, can lead to irretrievable consequences. The inabilities of a critical self-assessment of the employees and administrators, current risks, and over-confident attitude to patterns of production have put many enterprises on the brink of bankruptcy.

I have learned that the difference of national business cultures causes a clash of the different value systems. International commerce operates at the intersection of different cultural environments and religions. Intercultural conflicts can arise in cases when strong and lose value systems meet; consequently, it becomes more difficult to build a business relationship. Misunderstanding occurs because of the difference in mentality, and accordingly, the diversity of approaches to management, negotiations, and ethical business values.

I have changed my mind on the primary characteristics of a successful international company manager. This fact can contribute to my future career. The necessity of closer acquaintance with the culture of other countries and getting familiar with the peculiarities of the national mentality are the necessary components of cross-cultural competence. The knowledge and deep understanding of the national business culture and common models of organizational behavior of people in different areas increases the efficiency of the management and helps avoid conflicts. Ignorance and failure to acknowledge the national cultural component limit the development of international activities. Successful and efficient business activities are not possible without understanding and adapting to the cultures of other countries. Internationalization makes high demands on the methods of management. The knowledge in the intercultural cooperation rules supports the development of firms and the need to build and maintain the long-term relations of cooperation with the foreign business partners.

I have understood that the business professionals should adapt to new realities as they have to compete in a challenging business world. As a result, employees need to receive better training and master their professional cross-cultural skills and intelligence.


A critical evaluation of the studied materials has led me to the conclusion that the globalization has caused many economic, environmental, political, and socio-cultural challenges. I got an insight that poverty is a global socio-economic phenomenon and a problem with a destabilizing potential. In combination with the environmental concerns, it creates a growing threat to the stability and development of the earth. In my opinion, the solution is in providing the poor states with effective assistance in the creation of functional environment and infrastructure at the local level. I have realized that the failure to realize the changes in poverty and environment protection can enhance the world crises. Its main feature is the resonance of many crises that coincide in time and space.

The socio-cultural aspects of the changes implementation should be accurately assessed and taken to advantage. The diversity of cultures and tolerant attitude to each other’s differences are the crucial prerequisites for leading successful international business. It is important to reverse people to their cultural environmental and native values. The westernization of the global world has proclaimed the universal power of money. I believe that spiritual values in every culture can help in preservation and enrichment of the national capital and economic attractiveness. New socio-cultural realities play an important role in the global economic environment, and their adequate application can contribute to the elimination of the poverty and ecological problems.

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