The
CEO of the company takes decisions about management as well as the
globalization of the company. Being CEO of a midsized technological software
company of Saudi Arabia, I consider globalization as a necessary part for the
development of the company. The globalization requires essential considerations
about the offices and location of offices in the different nations around the
world. The company should deal with the political risk and legal issues by
taking proactive steps to increase micro and macro political risk environments.
The legal and political risk factors in the international business are mainly
two aspects for the business and the company should be aware of these risks at
the international level. The failure of recognizing the issues and solution can
potentially restrict the performance of the business (Opentextbc. ca, 2018). The rules and
regulation in different nations induce an impact on the development of a
technology software company. The political risk insurance provides protection
for the investors. The promotion of financial loss can be restricted by
reducing the impact on business growth. Domestic and international political
violence induces a negative impact on the development of the business. The pros
and cons of the globalization of the company are listed below,
Pros
1.
The international markets are getting more
access to interact with the customers.
2.
The selling of services and goods in the world
population becomes more saturated.
3.
The lowering cost of services increases business
and the cost of production.
4.
The influence of political decisions on the
organization increases power gaining.
Cons
1.
The political issues, as well as legal issues,
can restrict commercial activities of the company and the power gaining
increases due to globalization.
2.
The anti-globalist claims about the unequal and
worse conditions of the population. The rapid growth of the company can face
issues due to the legal terms and conditions of the state.
Reference of The Globalization of Company
Opentextbc. ca. (2018). Advantages and
Disadvantages of Competing in International Markets. Retrieved from
opentextbc.c:
https://opentextbc.ca/strategicmanagement/chapter/advantages-and-disadvantages-of-competing-in-international-markets/