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Pros and Cons of Globalization for Suppliers and Businesses Essay

Decent Essays
Almost every business has been affected by globalization during the last few decades. The main changes for businesses have been in technology, competition and the exchange of information. For suppliers to keep pace with the economy they have to understand the advantages and disadvantages of globalization and how it works.

The three main benefits of technology are a higher quality of the product or service, and the saving of money and time. For businesses to increase the sales and be able to keep a high quality in the goods and services, they have to compete against other companies by having the latest technology with the best prices. To achieve it, most of the times companies decide to outsource their production that permits them to use
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The second factor is that the level of the competition influences the choice of service and the goods that they sell. By this we can be understand that if a product is inferior compared to that of the competence they will struggle with the sales.

On the other hand there is the case of the marketing team that does appreciate competition as they see it as an advantage. As it is difficult to emerge a market by only one company, marketers sees competition as an opportunity to create a nascent market. As it can rise the knowledge of the consumers over the product or service. The second advantage would be that as a result of competition, the productivity of the business would also increase; because they would have to compete for the sales the company would increase the quality and performance.

Last but not least the exchange of information also forms a major part of globalization. The fast changes in tendencies make communication between countries essential for international businesses. The transfer of information in the market increases the transparency between companies, which gives businesses the opportunity to enhance their goods or services.

On the other hand some businesses can see this transparency as a major drawback. This transparency could cause companies to settle with a formal agreement, also known as a cartel. An example of a cartel is the OPEC (organization petroleum exporting countries) that has been accused to regulate supply in
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