How Important is it for managers today to have a good understanding of Essay

How cardinal is it for managers today to have a respectable understanding of the process of globalization - Essay Example(Steger, 2003 p. 37) With regards to the handsome supply of available work force in the labour market, medium- and large-scale businesses are taking receipts of hiring competitive employees. Likewise, it is also crucial for businesses today to actively participate in the trading of goods and services in the world market.As part of discussing the valid reasons that makes it important for modern managers today to have a good understanding of the process of globalization, a literature review will be conducted in the study. To give the readers a better understanding of the subject matter, the first part of the literature review will discuss rough the general information and the main purpose of globalization followed by analyzing the factors that makes it important for modern managers to have a good understanding of the globalization process. To determine how well modern managers understand the globalization process, a organize personal interview with two selected managers combined with aGlobalization is a process of interaction and consolidation among people, companies, and governments of different countries which is driven by international trade and investment through the use of information technology. (The Levin Institute, 2008) Basically, the imagination of globalization allows business people to maximize their available financial resources by taking advantage of the cheap products and services that are readily available from developing countries. Because of the differences in monetary exchange rate, large-scale businesses from substantial countries are able to purchase more homogenous products and highly competitive human resources at a much lesser price. Therefore, large multinational companies could easily compete with small-scale local businesses by be able to offer homogenous products to its target