Advantages and disadvantages of global business | Bài thảo luận tiếng anh thương mại

THUONGMAI UNIVERSITY
Faculty of Economic information systems and E-commerce --- ---
AGENDA: BUSINESS ENGLISH 1 TOPIC:
ADVANTAGES AND DISADVANTAGES OF GLOBAL BUSINESS Group: 3 Course: 251_ENTI3311_20
Course Lecture: Nguyễn Thị Xuân Phương
Hà Nội - 2025 INDE 1 X
FIRST MEETING MINUTE – GROUP: 03..............................................................3
SECOND MEETING MINUTE – GROUP: 03.........................................................5
PEER ASSESSMENT.................................................................................................6
1. INTRODUCTION...................................................................................................8
2. CURRENT GLOBAL BUSINESSES.....................................................................9
2.1. Well-known global businesses................................................................................9
2.2. Current trends in global business...........................................................................10
3. ADVANTAGES OF A GLOBAL BUSINESS.....................................................10
3.1. Group 1: Financial and business benefits..............................................................10
3.1.1. Expanding Markets.........................................................................................10
3.1.2. Economies of Scale.........................................................................................11
3.1.3. Access to Resources........................................................................................11
3.2. Group 2: Non-financial benefits............................................................................12
3.2.1. Brand recognition............................................................................................12
3.2.2. Stronger competitiveness................................................................................12
3.2.3. Risk diversification across multiple markets...................................................12
4. DISADVANTAGES OF GLOBAL BUSINESS..................................................13
4.1. Group 1: External/Objective challenges................................................................13
4.2. Internal/Subjective challenges...............................................................................14
5. CONCLUSION...................................................................................................17 2
FIRST MEETING MINUTE – GROUP: 03 Time: from 10pm to 11pm Place: Google meet Members: 07/07
Contents of discussing: - Agree on discussing outline - Take the tasks
TASK ASSIGNMENT TABLE No. Name Duties 1 Trương Thị Giang
Create content and slides for Current Global Businesses
Create content and slides for Advantages of 2 Hoàng Thị Ngọc Hà a Global Business
Group 1: Financial and business benefits
Create content and slides for Disadvantages 3 Thiều Văn Hải of a Global Business
Group 1: External/Objective challenges
Create content and slides for Disadvantages 4 Nguyễn Thu Hằng of a Global Business
Group 2: Non-financial benefits
Create content and slides for Disadvantages 5 Lã Quang Hiến of a Global Business
Group 2: Internal/Subjective challenges 6
Nguyễn Thị Thúy Hồng Leader, Create content and slides for Introduction and Conclusion 3 Conclusion:
1. Members actively contributed to the discussion 2. Complete the outline 3. The meeting went very well Leader Hồng Nguyễn Thị Thúy Hồng 4
SECOND MEETING MINUTE – GROUP: 03 Time: from 10pm to 11pm Place: Google meet Members: 07/07
Contents of discussing: Preparations report, Test presentation No. Name Duties 1 Trương Thị Giang Presentation 2 Hoàng Thị Ngọc Hà Presentation 3 Thiều Văn Hải Presentation 4 Nguyễn Thu Hằng Presentation 5 Lã Quang Hiến Presentation 6
Nguyễn Thị Thúy Hồng Progress update, Synthesize opinions, Presentation
Conclusion: Everyone presented well and completed their tasks Leader Hồng Nguyễn Thị Thúy Hồng 5 PEER ASSESSMENT No Name (for
students) Duties ID Mark . Create content and 1
Trương Thị Giang slides for Current 23D140073 Global Businesses Create content and slides for Advantages of a 2Hoàng Thị Ngọc Global Business 23D140016 Hà Group 1: Financial and business benefits Create content and slides for Disadvantages of a 3
Thiều Văn Hải Global Business 23D140017 Group 1: External/Objective challenges Create content and slides for Disadvantages of a 4 Nguyễn Thu Hằng 23D140135 Global Business Group 2: Non- financial benefits 5
Lã Quang Hiến Create content and 23D140136 slides for 6 Disadvantages of a Global Business Group 2: Internal/Subjective challenges Leader, Create 6Nguyễn Thị Thúy content and slides 23D140023 Hồng for Introduction and Conclusion 7 1. INTRODUCTION
According to Dr. Mike W. Peng, Global Business is defined as "business around
the globe". They define Global Business as involving "transactions across borders,
primarily through export-import trade and foreign direct investment (FDI)" where these
transactions "are devised and carried out across national borders to satisfy the objectives
of individuals, companies, and organizations" via wholly-owned subsidiaries or joint ventures.
Globalization in business occurs due to several factors. Technology enables
companies to produce and share information more easily across international borders.
Modern transportation allows goods to move faster and cheaply. Open trade policies
reduce barriers between nations, while better communication tools connect people instantly.
When it comes to business, the world is a very big place. Yet, for successful
companies, a global organization is crucial to their success. Global business means
selling products and services across national borders, often involving foreign production
and investment. It brings many benefits, such as lower labor costs, reduced taxes, and
more efficient supply chains. Thanks to technology , companies can now operate
worldwide, sourcing materials from one country, producing in another, and selling in
many markets. However, global business also faces challenges, including political and
legal issues, cultural differences, and language barriers, which companies must manage carefully to succeed. 8
2. CURRENT GLOBAL BUSINESSES
2.1. Well-known global businesses
In the modern world, global businesses are very important for the economy and for
people’s daily lives. These companies work in many countries and sell products or
services to millions of customers. They also connect people from different cultures
because the same products can be found in many places. Some famous examples are Apple, Samsung, and Coca-Cola.
Apple is one of the best-known technology companies. It makes iPhones, iPads,
MacBooks, and other devices that are popular around the world. People like Apple not
only because its products are modern and easy to use, but also because of their nice
design. Apple stores can be seen in many big cities, and the brand has become a symbol of quality and style.
While Apple is strong in design and innovation, Samsung is another giant in the
technology industry. This South Korean company produces smartphones, televisions, and
home appliances. Samsung is known for its new ideas and for offering many products at
different prices. In this way, the company makes advanced technology available to more
people, not just to a small group of customers.
If Apple and Samsung are leaders in technology, Coca-Cola is the leader in the
beverage industry. Its soft drinks are sold in almost every country in the world. Coca-
Cola is successful not only because of its product but also because of its powerful
marketing. Through advertisements and sponsorships of international events like the
Olympic Games, the company stays close to its customers and keeps a strong global position.
These examples show that global businesses can be successful in different ways.
Some companies focus on innovation and technology, while others use marketing and
brand image. However, they all manage to build strong connections with customers around the world.0825 9
2.2. Current trends in global business
Global business is also changing quickly because of new trends. One of the most
important trends is digitalization. Companies now use digital tools, artificial intelligence,
and big data to understand customers better, improve their work, and create new products.
Digital platforms also help businesses stay in touch with their customers more easily.
From digitalization comes the fast growth of e-commerce. As more people spend
time on the internet, many prefer online shopping instead of visiting physical stores.
Companies like Amazon and Alibaba show how e-commerce can connect buyers and
sellers across countries. With only a few clicks, people can buy almost anything, which
makes shopping faster and more convenient.
At the same time, sustainability has become another key trend. Many customers
today care about the environment, so businesses try to reduce waste, save energy, and use
eco-friendly materials. For example, some companies use recyclable packaging, while
others invest in renewable energy. Acting in a sustainable way helps companies keep the trust of their customers.
Another important trend is outsourcing. Many companies move part of their work
to other countries where labor is cheaper or more skilled. This is common in the
technology industry, where services like software development or customer support are
often outsourced to countries such as India or Vietnam. Outsourcing helps companies
save money and focus on their main activities.
These trends—digitalization, e-commerce, sustainability, and outsourcing—show
how global business is changing. Success today depends not only on products or strong
brands but also on how well companies can use technology, respond to customer needs,
and take advantage of resources from all over the world. 10
3. ADVANTAGES OF A GLOBAL BUSINESS
3.1. Group 1: Financial and business benefits
3.1.1. Expanding Markets
A key advantage of global business is the opportunity to expand markets. When a
company operates in only one country, it focuses on local customers, which can limit the
company's growth and development. By going international, the company can reach
many new customers in different countries and cultures. This gives the company more
opportunities to grow sales and build its brand. For example, fashion brand LSoul has a
store in the city known as the fashion capital of Asia, Shanghai. By expanding markets,
the company reduces risk, because even if one market experiences economic difficulties,
other markets can still support the business and maintain success.
3.1.2. Economies of Scale
Another financial benefit of global business is economies of scale. When a
company develops and manufactures for multiple countries, it can produce products in
larger quantities. Manufacturing on a larger scale typically reduces the cost per unit. This
means the company spends less money but makes more profit. For example, a global
company can order large quantities of raw materials at once and get a discount, saving
costs. At the same time, the business can share resources such as factories, technology, or
offices across countries, making operations more efficient. This allows the business to
compete better with other businesses and offer lower prices to customers.
3.1.3. Access to Resources
A global business also has better access to resources from multiple countries.
These resources include raw materials, new technology, and skilled labor. Labor costs are
lower in some countries and easier to find in others. For example, Chinese-invested
garment companies are now often located in rural areas of Vietnam because they want to
take advantage of cheap, hard-working labor. Technology and financial companies often
locate their offices in central locations, attracting high-quality , experienced human 11
resources. In this way, companies can improve product quality, create new innovations
and reduce production costs. Access to global resources gives businesses an advantage
and helps them stay competitive in a rapidly changing world market.
3.2. Group 2: Non-financial benefits
3.2.1. Brand recognition
First of all, one of the most evident non-financial benefits when a business
expands operations or enters multiple markets is enhancing brand recognition. When the
brand frequently appears on media channels, in customers’ minds, and is often mentioned
by consumers, it gradually builds a strong reputation. Beyond being widely known, this
presence also helps the business affirm its value, build trust, and create differentiation
compared to competitors. For example, a Vietnamese brand that successfully exports to
international markets not only gains profit but also elevates its status, making both
domestic and foreign customers value it more. Therefore, brand recognition becomes an
invisible yet sustainable foundation for long-term business development.
3.2.2. Stronger competitiveness
In addition to increasing brand recogniti
on, businesses also strengthen their
competitiveness in the market. Once the brand has earned customer trust, the business
enjoys significant advantages in product differentiation, service quality, and customer
experience. As a result, they can retain existing customers and attract more potential ones.
Moreover, strong competitiveness not only helps businesses stand firm against domestic
rivals but also increase their ability to enter international markets with stricte
requirements. For instance, e-commerce companies can compete by leveraging
technology, modern logistics systems, and excellent customer service, thereby expanding
scale and boosting advantages. Clearly, competitiveness is a key factor that helps
businesses maintain stable growth and create momentum for future breakthroughs.
3.2.3. Risk diversification across multiple markets 12
Finally, another significant benefit is risk diversification when businesses operate
in multiple markets. In the context of global economies frequently affected by financial
crises, pandemics, or changes in trade policies, a business focusing only on one market
can easily become passive and face heavy losses. In contrast, if a business has developed
diverse operations across countries or market segments, it can rely on stability in other
markets to offset losses. This allows the business to reduce over-dependence on a single
revenue source while improving resilience and adaptability to unexpected risks. Hence,
this is a smart management strategy, helping businesses preserve resources, maintain
sustainable growth, and seize opportunities from emerging trends.
4. DISADVANTAGES OF GLOBAL BUSINESS
4.1. Group 1: External/Objective challenges
One significant disadvantage of global business is cultural and language barriers.
Operating across borders means dealing with different languages, customs, and social
norms. Miscommunication can easily occur in negotiations, advertising campaigns, or
even daily teamwork. For instance, a slogan that works well in one country may cause
confusion or offense in another due to cultural differences. These barriers not only slow
down cooperation but may also harm a company’s reputation if managers fail to show cultural sensitivity.
Another challenge is political and economic risks. International companies must
adapt to different legal systems, tax policies, and trade regulations. Political instability,
corruption, or sudden changes in government policies can directly affect operations.
Economic risks are also unavoidable: currency fluctuations may reduce profits, while
global recessions can decrease consumer demand. For example, during financial crises,
many multinational companies face declining sales and even have to shut down branches abroad.
Such risks make long-term planning and investment decisions far more complicated. 13
The third disadvantage involves environmental concerns. Expanding globally
usually means higher levels of production, transportation, and resource consumption.
This can contribute to pollution, carbon emissions, and climate change. In today’s world, businesses are under
strong pressure from governments and consumers to adopt
sustainable practices. A company that fails to act responsibly may face strict penalties,
negative media coverage, and the loss of customer trust. Therefore, environmental issues
are not only an ethical responsibility but also a factor that directly influences business success.
In conclusion, cultural and language barriers, political and economic risks, and
environmental concerns represent some of the most serious external challenges for global
businesses. Recognizing these disadvantages allows companies to prepare bet
strategies and achieve sustainable growth in the highly competitive international market.
4.2. Internal/Subjective challenges
Global business has become an inevitable trend in the era of international economic integration. It
brings many advantages for enterprises, such as expanding
markets, improving competitiveness, and accessing capital and advanced technologies. However
, alongside these opportunities, there are also considerable disadvantages,
especially those arising from internal challenges. According to the Global Trade Pulse
2025 report by HSBC, both Vietnamese and international enterprises are facing heavy
pressure from rising costs, legal and tax risks, and fierce global competition. These three
major challenges highlight the disadvantages of global business in today’s context.
The challenge of high operating costs
Operating cost is the biggest barrier that enterprises encounter when engaging in global trade
. HSBC’s survey reveals that 66% of global enterpr ises and 80% of
Vietnamese enterprises suffer from cost increases caused by tariff and trade fluctuations
(VietnamFinance, 2025). This not only reduces profit margins but also directly affects
their ability to expand and maintain an international market share. 14
In fact, supply chain costs have been escalating due to volatile fuel prices, higher
freight charges, and container shortages. On average, businesses lose up to 18% of
revenue because of disruptions in the global supply chain. T o mitigate risks, many
companies are forced to increase inventory levels or adjust product prices, yet these measures tie
up capital and weaken competitiveness. Some enterprises
nearshoring or reshoring, relocating production closer to consumption markets or back to their home country
. Nevertheless, such strategies require significant investment in
facilities and technology, which exceeds the capacity of many small and medium-sized enterprises (SMEs).
In Vietnam, exporters in seafood and textiles have had to raise prices when
entering the U.S. and European markets to offset higher logistics costs. As a result,
Vietnamese products lose their competitive advantage compared with rivals such as India
or Bangladesh. Clearly, high operating costs are a critical disadvantage, weakening the
resilience and competitiveness of enterprises in the globalization process.
The challenge of legal and tax issues
Apart from costs, legal and tax issues also pose serious challenges for global
businesses. Each country has its own legal system and tariff policies, requiring
enterprises to constantly adjust in order to comply with local regulations. The HSBC
survey indicates that 51% of global enterprises regard rising tariffs as their biggest
concern in supply chain strategies. If trade uncertainty persists, 43% of companies plan to
reconsider their international expansion, and 39% may shift their focus back to domestic
or regional markets (VietnamFinance, 2025).
From the legal perspective, companies must also cope with complex cross-border
regulations on data protection, consumer rights, and labor standards. Without sufficient
preparation, they may face penalties, lawsuits, or even lose access to foreign markets. In
Vietnam, many enterprises fail to take advantage of Free Trade Agreements (FTAs)
because they lack legal departments familiar with international law. Consequently, they
miss tariff incentives or even suffer anti-dumping duties. For example, sev 15
Vietnamese seafood exporters were subject to high anti-dumping tariffs in the U.S. due to
insufficient transparency in documentation and limited legal knowledge.
This shows that legal and tax challenges not only increase costs but also create
risks of losing markets if enterprises lack the internal capacity to ensure compliance.
Therefore, these factors represent significant internal disadvantages for companies in global business.
The challenge of fierce competition
Global competition is inherently intense, as enterprises must confront rivals with stronger financial capacity , advanced technology
, and extensive global networks.
Multinational corporations hold advantages in both capital and technology, allowing them
to dominate markets easily. Meanwhile, SMEs, though more flexible, lack resources to
expand effectively. According to HSBC, large enterprises are often cautious and tend to
delay investments (38%), while smaller firms are more flexible but constrained by capital
and technology. Both groups face internal limitations, reducing their competitiveness in international markets.
Competition also takes place in terms of technological innovation. Sectors such as
Technology, Media, and Telecommunications (TMT) are expected to face the highest cost
pressures (76% of enterprises concerned), yet they are also pioneers in restructuring
supply chains. Enterprises unable to keep pace with digitalization and automation risk being quickly eliminated . Moreover
, cultural differences, consumer behaviors, and
language barriers create further difficulties for businesses without sufficient research or adaptation strategies.
For instance, several Vietnamese retail brands expanding into neighboring
countries failed because they did not adapt their products and marketing strategies to
local consumer preferences. This demonstrates that competition is not only about price
but also about innovation, market knowledge, and building sustainable internal strength. 16
From the above analysis, it can be concluded that the disadvantages of global
business mainly stem from internal challenges, including high operating costs, complex
legal and tax systems, and fierce competition. Without adequate preparation, these
weaknesses may reduce competitiveness or even push enterprises out of the global market. T
o overcome these disadvantages, companies need to strengthen financial
management, build professional legal teams, invest in technological innovation, and
proactively restructure supply chains. These measures are essential for transforming
challenges into opportunities and fully leveraging the benefits of globalization. 5. CONCLUSION
In conclusion, global business
brings both advantages and disadvantages that
affect companies, economies, and societies. On the positive side, it allows firms to enter
new markets, expand their customer base, and take advantage of lower costs by
producing in different countries. It also improves efficiency through global supply chains
and gives consumers more choices at competitive prices. These benefits show why
globalization has become such a strong driver of economic growth worldwide.
However, global business is not without its challenges. Companies face political
and legal risks when operating across borders, and they must deal with cultural and
language differences that can affect cooperation and marketing. In addition, strong
international competition means that only businesses with good strategies and flexibility can succeed
. For this reason, global business requires not only ambition but also responsibility from companies.
Looking toward the future, the importance of adaptation becomes even clearer.
Businesses must respect cultural diversity to build trust in foreign markets, make use of
digital transformation to improve productivity, and follow sustainability trends to meet
the expectations of modern consumers. Only by combining growth with responsibility
can global businesses succeed and remain competitive in today’s connected world. 17 18