Discuss The Challenges For Small Businesses, Disadvantages, Effects Of Globalization (Essay Sample)

Expansion Paper
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Introduction
The term going global refers to the international movement towards economic, financial and communication incorporation. Globalization can be traced back to the era of the Roman empire. However, the term was made famous by Thomas L. Friedman in the Book The World is Flat, where he argued that the rate at which the world is becoming global is speeding up the impact on business and organizations as various business practices changes (Dunning, 2014).  The paper will discuss the challenges for small businesses, disadvantages, effects of globalization on small businesses and multinationals.
For small businesses, going global is a critical mission that could cause several business disruptions. Therefore, it is essential that business leaders must seek to understand its impact and determine if the adverse effects outweigh the positives that will be accrued due to the expansion. Deciding to take a small business globally is complex and dynamic and requires businesses to understand the target market fully, their competitors, the trends in that market and the requirements to succeed in the new market.
Several challenges face small business expansion; in any case, there is no business expansion without facing any hurdle. However, expanding globally has its unique problems. This includes language barriers, tax compliance issues, slow pace and competition from local businesses (Collings, 2014). Different cultures have their ways of doing things; cultural norms present considerable obstacles to new companies.
Understanding tax codes from different countries, how to package your products can be a challenge. The business can also take time to pick up, as a result; international companies must be prepared for such situations. Convincing the locals to purchase your products can also be a challenge while finding the right partner is equally challenging. Small businesses must address these challenges must when expanding globally.
Going global has several disadvantages; to begin with, it requires a lot of capital. Expanding globally requires a lot of finances which can bring the business down if they are not well prepared. Another disadvantage is that there is less control since the stores are located far. Hiring and training the right employee is also a disadvantage to the company in the sense that more resources have to be used. On the other hand, failing to evaluate new employees properly will result in poor performance, while the company will have to look for a more suitable candidate, which is an added cost (Collings, 2014). Moreover, expansion compromises the quality of the products, which makes clients to shun the company.
Compared to small businesses, it is not easy for medium firms to compete globally. This is because they both face the same issues. Regarding cultural challenges, both businesses must learn the culture of the natives in the country they are planning to set up their businesses. Moreover, matters of tax compliance, slow pace, competition are still common challenges that all kinds of businesses must grapple with regardless of whether they are small or large. However, compared to small businesses, large companies have the upper hand concerning finances. Going global requires a lot of financial investments, which large businesses have.
As the world becomes globalized, e...