Impact of Globalization on Developing Countries
Task two Impact of globalization on business organization forms in Guyana Business organisation forms
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| Task two
Impact of globalization on business organization forms in Guyana Business organisation forms Business organisations are formed to facilitate commercial enterprise and may take the form of individual proprietorships, partnerships, and limited-liability companies. The process of globalization creates new challenges and opportunities for firms. The opportunities include access to new markets and participation in global production networks that are becoming prevalent in many industries such as automotive, electronics, toys and textiles. Most businesses in Guyana’s hemisphere exist because of globalisation.Guyana is an export-oriented country, and its ability to produce and export is dependent on its ability to import specific types of goods used as intermediate consumption or capital investments in the manufacturing process. This interlocking relationship in Guyana's production structure is critical to economic progress because Guyana lacks the necessary intermediate and capital goods. With globalization, the business environment becomes more complex with the laws, regulations, cultures, etc. Companies must face global and local competitors. Inefficient organisations cannot survive this high number of competitors like Lufthansa and France Telecom (Hamilton, & Webster, 2015). According to the World Economic Forum's 2018 Global Competitiveness Report, Guyana is the 121st most competitive country in the world, out of 140 countries ranked. (see figure 2 below) Figure 2. Guyana’s competitive rankings. Furthermore, companies must adapt their products to different markets in terms of behaviour, tradition, expectation and attitude (Roman, & Manolică, 2012). The spread of technologies and knowledge makes the competition fierce and feared (Bhagwati, 2004). Download 144.48 Kb. Share with your friends:
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