Aylin Canales

3/10/19
Dr. Ehsan Sheybani
Chapter 9- Assignment
I believe any business, no matter the size, should become international. “The global
economy is creating customers who demand integrated worldwide services, and the expansion of
global markets is a major factor in developing global information systems to handle these
integrated services”, (Bidgoli, 7). I have found four reasons that companies of all sizes should
become global. Also, how small companies are able to participate in the globalization trend.
The first reason for all companies to become global is the global demand (Alter, 2011).
The US is the largest producer of goods and consumer of products of all kinds in the world, but
things are changing fast (Alter, 2011). The middle classes of the following countries in terms of
demand has grown, China, India, Brazil and Indonesia, and the rest of the world (Alter, 2011).
“These countries’ combined population is over 10 times the size of the US”, (Alter, 2011). The
middle class in China is the size of the US population (Alter, 2011). These countries want
everything that they can get their hands on (Alter, 2011). “This represents an unprecedented
opportunity for US companies of all sizes and particularly for agile smaller firms that are willing
to expend the time, energy and money to find out how they can play in this global game”, (Alter,
2011).
The second reason for all companies to become global is the low carbon (Alter, 2011).
Having clean energy and Green products are a significant opportunity for any business that
produces products or services in this segment (Alter, 2011). The demand for energy is growing
dramatically (Alter, 2011). “Companies that offer or develop innovative solutions that are
affordable and easy to deploy, and use have an opportunity to grow significantly. The
developing Low Carbon economy is here to stay and represents plenty more opportunities for
companies beyond simply producing products,” (Alter, 2011). There is expected growth in the
following areas; IT, financial management, engineering, human capital, education, etc. (Alter,
2011).
The third reason for all companies to become global is innovation (Alter, 2011). “Many
of us believe that the US is poised to leverage our competencies in innovation and creativity as
this new global economy emerges and we enter a period of rapid acceleration of science and
technology,” (Alter, 2011). Some of this is behind Startup America, the Obama
Administration’s innovation strategy, (Alter, 2011). “The opportunities are becoming clearer for
US companies to innovate and grow globally, ‘(Alter, 2011).
The fourth and final reason for all companies to become global is demographics (Alter,
2011). The populations of developing countries are growing way more rapidly than the
developed world in the West and Japan (Alter, 2011). Current events that have happened in
Egypt, Tunisia and the Middle East, where one in four people are between 15 and 24 (Alter,
2011). This type of dynamic is occurring in every developing country, but there being a possible
exception of China because of their one child policy (Alter, 2011). “There are plenty of reasons
for smaller firms in the US to explore globalization and exporting as strategy to grow in the
future. As a matter of fact, not to pursue these opportunities might lead to their demise,” (Alter,
2011).
These are ways that small companies are able to participate in the globalization trend.
Access to the global market through internet connection (BusinessBlogs Hub, 2017). Remote
staffing from other parts of the world (BusinessBlogs Hub, 2017). Competition around the world
is increasing (BusinessBlogs Hub, 2017). Because of competition going on than businesses have
to raise the quality of their products but manage to keep prices low (BusinessBlogs Hub, 2017).
Because of their being businesses becoming global, they are also becoming more equal
(BusinessBlogs Hub, 2017). “The Internet gives every single business access to marketing tools,
business information, and everything else that can make them as competitive as larger and more
established companies”, (BusinessBlogs Hub, 2017). There is an increase in tourism & travel
companies (BusinessBlogs Hub, 2017). “More and more people are traveling the world, thanks
to access to cheap travel. This means that if your business is related at all to the travel sector,
then you are likely to be seeing a big boost in revenue thanks to these tourists”, (BusinessBlogs
Hub, 2017).
 Works Cited
Alter, Charlie. “Four Reasons to Go Global.” All Business, Dun & Bradstreet, 10 Feb. 2011,
www.allbusiness.com/four-reasons-to-go-global-15479597-1.html.
Bidgoli, Hossein. MIS. Cengage Learning (2014): 2-64. Print.
BusinessBlogs Hub. “5 Ways How Globalization Impacts Small Businesses.” Best Business
Articles Are Found Here, 5 May 2017, www.businessblogshub.com/2017/05/5-ways
how-globalization-impacts-small-businesses/.