The extent to which the understanding of the history and development Essay

The extent to which the understanding of the history and development of business help in the understanding of business today - Essay Example The extent to which the understanding of the history and development of business helps in the understanding of business today depends on the effectiveness of economic policies instilled in the past. An examination of the history of some of the successful corporations reveals that most big companies were based on diversified groups. This is because they could take advantage of the economic scales easily because of the characteristics of the internal markets. It is also evident that authoritarian regimes helped in the development of businesses. This can help in the development of business today because it enables individuals make wise choices regarding the development of the economy (Trompenaar, and Wooliams, 2003). An understanding of the history behind the development of business helps in understanding of business today because the economic policies that were used in the past. This is because they ensured the restriction of imports and the growth of exports, which enhances the develo pment of businesses in terms of investments. It is evident that, in the past, companies did not pay attention on light labour intensive sectors. This is likely to help in the development of business today because the cost of labor will be low, causing the company to gain extra profits. History also depicts that there are governments that intervened by supporting private companies, therefore, enhancing the development of businesses. ... The development of business models has enhanced the establishment of businesses by enhancing businesses with architecture of value creation. An examination of the history of development of business reveals that the development of business ethics has also helped in enabling businesses adhere to their daily dealings. Business ethics help in the development of business by enhancing the interaction of businesses all over the world (Trompenaar, and Wooliams, 2003). How does the nature of globalization help in the understanding of business today? Globalization refers to the expansion of investments, trade and business interactions worldwide. The nature of globalization has helped in understanding business today in that it has enhanced prosperity for most businesses. Most people who support free trade claim that globalization enhances the creation of opportunities for businesses. It is thought that when a business is allowed to offer its resources to the global market place, then the busine ss is likely to improve. Globalization tends to increase competition resulting to the growth of businesses because of the development of new products (Hopkins, 2004).   Globalization has enhanced the development of business today because it not only increases the need for the acquisition of knowledge concerning cultural differences, but it helps in the establishment of cooperate cultures. History depicts that globalization has caused businesses to transfer experts from one country to another in an attempt to enhance the development of the business. Globalization helps in the development of the business because it enhances an understanding of the communication styles, cultural influences and the social behaviors of different societies. It has enhanced an