Probably like many North Americans I tend to see globalization as having a positive economic effect, although at times it is difficult to reconcile this perception with current events. For example, we all see small businesses caught in the transition to globalization without the skills to adapt. These companies and the people that they employee are often hurt by globalization. It is not enough to adapt old business practices to today’s technology; new models and processes must be created to remain competitive. Cultural diversity, training, and wage expectations are but a few of the challenges now facing small business owners. U. S. small businesses employing offshore workers will need to train their existing work force in the cultural issues that will be encountered when interacting with their foreign counterparts. Communication will take more time and will become of great importance when collaborating on joint projects. Local wage expectations need to be balanced against off-shoring a given position and profitability. In other words how many positions can be sent off-shore to support profitability and still maintain the wage level of the local workers? According to my experience this is not a common or easily mastered managerial skill. In conclusion, I believe that one of the major negative effects on small businesses are these new skill requirements to effectively manage and operate in a multinational business environment. In the long run I believe that globalization will greatly benefit the U. S. economy.
Sources:
The Effects of Globalization in the Workplace by Kate McFarlin, Demand Media
http://smallbusiness.chron.com/effects-globalization-workplace-10738.html
World Public Opinion.org
http://www.americans-world.org/digest/global_issues/globalization/general.cfm
Globalization; http://en.wikipedia.org/wiki/Globalization
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