Impact of Globalization and Immigration on Company Strategy and Performance

The imminent wave of the future has been called globalization for decades. True to the words of our forefathers, in today’s order globalization is now evident. Globalization in economic terms refers to the convergence process between independent economic systems. Globalization has made the planet a global village with free movement of resources and trade. Globalization in a layman speaks the same language as former domestic borders for industry. So the direct cross-border connectivity between countries and domestic economies emerges from globalization. But what does globalization bring to companies? This essay paper will work to explain the impact of globalization and immigration and how they influence company strategies.
Globalization and internalization
The paper wishes to distinguish the difference between internalization and globalization before the thesis at hand. As pointed out in the introduction, globalization involves the free interaction of international borders with the intension of trade and exchange of world views, ideas, and culture. Whereas, internationalization, on the other hand focuses on achieving a more specific enterprise goal. The term internationalization entails the enhancement of enterprise activity in the international frontier (Jones 2016). Nevertheless, there lacks an agreed definition on the latter. With this, it can be said that internationalization is one of the factors which spur the growth of globalization in the contemporary society. Globalization is the larger picture since it also enables free migration of people, with vast labor pool, from one country into the other.

As highlighted above, one of the immediate effects of globalization is the uncontrolled movement of people from their countries into new states. In a specified perspective, the international migration of people from their region of destination to a foreign state is known as immigration. More so, immigrants move to other nations with an aim of permanent residence and employment. In the long run, such immigrants become nationalized citizens or take-up jobs as foreign interim workers. The advent of globalization has, therefore, amplified immigration through the elimination of barriers in customs and travel (Dickinson 2017). The 21st century is, thus, one easiest social order where people can travel and reside in different parts of the world. As such, many democracies have moved a step further to allow for dual-citizenships where people can claim nationality to two countries. As we speak, the western countries continue to experience the highest rate of immigration.
Historical perspective
Immigration, or simply the international migration of people, is not a new phenomenon. In the past, countless breeds of animal have migrated from continent to continent in search for a sustainable niche. Similar to animals, the records of human movement date back to the ancient period. During this period, man has moved from Africa to America and other parts of Asia through slavery. This explains the presence of African-Americans and the diversity of races in most nations. In the present time, movement is free and voluntary as opposed to the pre-modern period. When individuals cross international borders to other foreign countries for settlement or employment, they are referred to as Immigrants. The name originates from the Latin word Migrare which is translated to “Wanderer.” In the country where the people move from they are known as emigrants while the state they enter they are called immigrants.
Company Performance and Immigration
On a general perspective, immigration of skilled-persons enhances the welfare of the country they move in. Nonetheless, the movement of the non-skilled personnel promotes the well-being of the natural citizens. For the low-skilled people, they are known to offer an affordable alternative to labor. For labor-intensive firms, it is an opportunity to enjoy cheaper means of production which increases their profit margin. While uncontrolled migration to a specific country may render the low-skilled citizens worse off, the net impact is positive and promotes the economy of the country (Moses 2006). Contrary to popular opinion, immigrants do not have an adverse effect on the locals who have similar skills. But how does immigration fair with company strategy and performance?
Company strategy
A company strategy falls under the duty of the strategic management of the firm. Formulation of a strategy is important in a normal market with perfect competition due to the impact and influence of the rivals in the same industry. Apart from setting objectives, a strategy also caters for future plans that aim to keep the company competitive and profitable. A company’s location, product differentiation, and target market are some of the strategies that assure a brand of profitability in the fiscal year. According to Porter’s generic strategies, cost leadership is essential. As the name may suggest, cost leadership focuses on cost-minimization strategies (Ardittis et al. 2008). As this paper is going to reveal, location as influenced by immigrants is applied as a company strategy.
According to David Card, and later other analysts, immigrants and immigration exerts a positive impact on the strategy and performance of an enterprise. Globalization as a company strategy in itself is favored by the advent of immigration. According to Artal-Tur (2008), firms seek to explore the international market when assured of a ready market. Such an assurance emanates from the presence of emigrants in the target market. For instance, a Chinese company seeking to enter the American market is likely to set up its factory in a locality popular with Chinese Immigrants. This strategy ensures the firm familiar and affordable labor availability. As a result, the new company is able to settle easier in the new market.
Company Performance
The performance of a company can be described as the composite analysis of how well it utilizes its central parameters namely; shareholder, market, and financial objectives. In any economy, an ideal company is established with the sole purpose of profit-making. When such a firm is in the stock market, it is also the duty of the management to ensure maximum utilization of the shareholder’s welfare as well as Corporate Social Responsibility (CSR). In more than one way, the advent of immigration has been cited and proven to stir a positive trend in relation to the mentioned parameters. With the high rate of immigration in the western countries, it is no wonder companies in this vicinity continue to flourish in the endeavors.
But how does immigration and performance correlate? According to research, when a firm explores a foreign market, it is assured of a ready market from the immigrants of its country. According to Milgate (2003), on Chinese firms in America from 1993-2013, the diaspora serves as an asset when firms move abroad. Economically, the firms secure a profitable market share will less marketing and advertising strategies. Therefore, immigration has a direct positive impact on the performance of a company in a foreign market. More importantly, the number of immigrants can also be used to measure the probability of survival in an enterprise working as a going concern. Where the immigrants are fewer, a company is likely to struggle which may lead to closure. It is, therefore, easy to conclude that immigration not only enhances the performance of a company in a foreign market but also determines its success in the long run.
Political environment
One of the political issues the 45th president of the United States (US), Donald Trump has inherited from his predecessor is the “Immigration Menace.” Most American citizens are worried about the rising number of undocumented immigrants continuing to invade the country. In a political perspective, the immigrants are feared of draining the already limited natural resources in a country. This notion is powered by the fact that their number continue to be unknown due to their irregular nature which makes it difficult to allocate calculated resources for them. On the grass root level, immigrants are viewed through a vicious eye by the locals. According to many, their increasing numbers continue to stretch the national government over the allocations of funds to support their families and business. With this, natural citizens often feel like the immigrants are promoted at their expense.
Additionally, the immigration issue is also associated with border control in the present day. With the example of the US, the growing influence of the Latino’s places the locals in an awkward position as they feel threaten by their growing numbers. More so, the US government has continued to loss employment of its people since 2012. The increasing rate of unemployment is politicized especially in the election years blaming the immigrants on the worsening case of the economy. Additionally, the advent of terror in most countries also creates fear and havoc. As terror attacks continue to rise, the blame game puts the immigrants on the receiving end. Such issues have been the focal point of modern political battles as politicians promise to control the rate of immigration in their countries.
Economic perspective
On macroeconomic issues such as inflation and employment, immigrants continue to play a crucial role as they work in firms under the minimum wage. As a result, the production cost of many companies, international or local, continue to subsidize, thus, maximizing on the limited resources. In return, such concerns end up making profits by offering competitive prices in the international market. Despite their subsidized pricing, companies are able to enjoy normal profits due to the cost-minimization strategies employed in the production period (Smith 1997). On microeconomics, immigration produces similarly positive results as individual utility is maximized through the production of quality services and products. For a rational consumer, the services provided through the hands of immigrants provide maximum utility out of their quality and quantity.
From a rational perspective, most of the undocumented immigrants work in cities as genitors, assistants in hospice centers, cash crop harvesters, and non-skilled contract builders. In other words, they work on shifts and duties that a normal American would be unwilling to do. With this, they continue to promote the economy in the little possible way. According to the thesis of this essay, immigrants have a significant role in promoting company performance and strategy as opposed to popular opinion. This is the case on whether the company is local or internal as their presence ensures cheap labor. Nonetheless, they are viewed as second-class citizens.

ARDITTIS, S., & LACZKO, F. (2008). Assessing the costs and impacts of migration policy: an international comparison. Geneva, IOM, International Organization for Migration.
ARTAL-TUR, A., PERI, G., & REQUENA-SILVENTE, F. (2014). The socio-economic impact of migration flows: effects on trade, remittances, output, and the labour market retrieved from
DICKINSON, E. (2017). Globalization and migration: a world in motion.
JONES, E., COELEN, R., BEELEN, J., & WIT, H. D. (2016). Global and local internationalization.
MILGATE, M. A. (2003). Transforming Corporate Performance: Measuring and Managing the Drivers of Business Success. Westport CT, Greenwood Press.
MOSES, J. W. (2006). International migration: globalization’s last frontier. London, Zed Books.
SMITH, J. P. (1997). The new Americans: economic, demographic, and fiscal effects of immigration. Washington, D.C., National Acad. Press.

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