Assignment of International Business

On
Globalization and its Impact on business in Nepal

Submitted By:
Sandesh Kumar Shah
MBA IV, Section “A”
Ace Institute of Management

Submitted To:
Pradeep Raj Pandey
Instructor
International Business
Ace Institute of Management

Date of Submission: May 30, 2022

 "Globalization and its Impact on Business in Nepal"

Globalization is a process of creating linkages of world economies by reducing barriers and

facilitating the flow of trade, capital and resources utilizinPradeep Raj Pandey g efficient
transportation networks that influence the integration of world economies. It helps customers get
wider variety, different quality or even lower prices and most of all increases availability
offering more choices to customers. Throughout history, wider human connections have
expanded people’s access to more varied resources, products, services, and markets. People have
altered the way they want and expect to live, and have become more deeply affected (positively
and negatively) by conditions outside our immediate domains. There are different types of
globalization like financial globalization, economic globalization, technological globalization,
political globalization, cultural globalization, ecological globalization and sociological
globalization.

Globalization has a significant impact on business in Nepal, which can be both positive and
negative. Workplace diversity exists as a result of globalization. Globalization helps to bring the
people in one place from different country with diversified culture, way of doing work,
perception, etc. Different cultures and ways of doing things can be shared and used to help the
business operate in a unique and different way. There is a negative impact of diverse culture in
business as well, which creates conflict due to the mismatch of ideas and feelings of people from
different cultures. Not only that, but globalization has resulted in the spread of technology and
innovation. Different people come up with different innovative ideas that they use to effectively
implement business activities. Technologies developed or invented in one country can now be
used in other countries, thanks to globalization. It is growing effectively by embracing
technological changes in the business. Those who prefer to work in traditional ways, on the other
hand, may suffer as a result of globalization.

Globalization enables to use different products in high quality and low cost. Because of
globalization, products and services can be distributed globally, allowing businesses to find
lower-cost manufacturing methods. In this globalized world, companies with low-cost products
can do well. Globalization also allows for the participation of people with diverse talents from
various countries. This enables Nepalese businesses to find new, specialized talents that are not
available in their current market. As a result, globalization provides companies with the
opportunity to explore each talent and use it to improve their business. Globalization provides
businesses with global access to different material sources, allowing them to be cost competitive
both in their home market and in international markets. Many business organizations around the
world are working hard to provide their products and services in the best way possible in order to
attract customers, which has increased global competition significantly, and this is why
globalization has impacted business in Nepal as well.

Business in the 21st century has been able to expand its boundaries overwhelmingly, regardless
of the geographical constraints. Nepal, a least developed country, has also been experiencing the
waves of globalization that has smashed the traditional way of doing business. Nepal practiced
controlled economy; businesses were never encouraged to be competitive in the global market.
Business in Nepal began to realize their limitation as they were not geared to meet the challenges
of global competition. As a result, companies in Nepal began to realize their limitation as they
were not geared to meet the challenges. Companies started to experience major adverse
situations as companies from outside entered the native domain. Slowly, multinational
companies started to capture the local Nepalese market. With the view of current impractical
government policies, for an agriculturally based country like Nepal, (example: removing the
subsidy from agricultural activities, loss for farmers). Business analysts are skeptical about
Nepal’s opportunity in the global market, although the country is trying to keep its pace with
modern technology and the process of globalization. Nepal stands as one of the most under-
developed countries in the world despite having adopted economic reforms. There is positive as
well as negative effects of globalization on Nepal.

Globalization has increased access to various goods and services that are cheaper in the country.
For example, we can purchase Chinese cellphones such as Oppo, Vivo, and others, which have
more advanced features than Samsung and are more affordable. We don't have to rely on a single
product or service because we can find various product alternatives and buy products that meet
our criteria. Globalization facilitate the free flow of information and technology which has
created a wide range of opportunities. For example, we have access to search engines where we
can find various reading materials to help us improve our knowledge of a particular field.
Similarly, we can transfer our ideas and knowledge from one location to another and connect
across borders with the help of technology. Globalization has also increased people's willingness
to support and speak out against injustice, inequality, and corruption. For example, when we see
people in Western countries fighting against inequality or corruption, it has an indirect or direct
impact on Nepal, as people here raise their voices in opposition to such activities to demonstrate
participation. More helping hands are visible in our daily lives than ever before, which was
previously limited to local governments. For example, when Nepal was struck by an earthquake,
various countries came together to assist Nepal by providing health care, sanitation, food, and
other necessities. Crowdfunding is another example, in which people can ask for donations to
support their cause via the internet, and anyone who is interested can donate.

Because of the COVID-19, there is a huge impact on globalization which has also impacted on
business in Nepal. Spreading of coronavirus effected the globalization in a negative way in
which many business activities worldwide were hampered, different trading activities were
stopped, people were working from home which slowed down the operations, and this caused
decreasement in the economical scale. But in context of local retailers, wholesalers, they got
benefited from Covid-19, as they were increasing their sales through online media which made
them earn good money through their business. So there were both positive and more negative
impacts on globalization and business due to COVID-19.

Baral (2020) has shown the impact of COVID -19 on globalization where he has written in
Covid-19 pandemic brought more vulnerabilities; embracing integration and connectivity, or
globalization in its entirety, is proving to be costly. Today, the ingredients of globalization are
becoming paradoxical. Because of COVID- 19, globalization, connectivity and integration has
become costlier to adopt blindfolded with the experience and emergence of this new scenario.
Nepal has been relatively untouched by global and regional economic crises, because we are less
integrated into the regional and global economies. He has also suggested to start the
contemplating ways to absorb the returnees by engaging them in various vocational occupations
with greater subsidies to start their own ventures in their native places by utilizing the skills
gained abroad.

Hence, globalization has both positive and negative impact on the business in Nepal. It helps to
improve productivity, cut back gender wage discrimination, give more opportunities to the
business and improve working conditions and quality of management. But it has also created
inequalities and personal stress in developing nation and people respectively. Similarly, because
of COVID -19, there's huge impact on the globalization but less impact on the business in Nepal
in comparison to other developed countries.
 References

https://www.suyogghimire.com.np/2021/07/what-are-impacts-of-globalization-in.html

https://helpfulprofessor.com/

https://velocityglobal.com/blog/globalization

https://www.who.int/health-topics/coronavirus#tab=tab_1

https://kathmandupost.com/columns/2020/05/24/globalisation-in-crisis

Baral, A. (2020). Globalization in crisis.Kathmandupost.

https://www.google.com/search?q=opportunity+from+globalization&sxsrf=AOaemvIMYXu