Pros and Cons of Globalization for Suppliers and Businesses Essay

Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale. According to economic and political writer Doug Bandow, “Some critics of globalization have contended that the process has helped the rich and hurt the poor. However, the best research indicates that this is accurate: ‘Poverty is falling rapidly in those poor countries that are integrating into the global economy.”. In both documentaries “The True Cost” and “Living on One Dollar” we can see how companies exploit their employees for consumer benefit, as well as the social and economic inequalities that are attached with globalization.

4. Expanding the company's product line to meet a broader range of customer needs The company may gain advantage on investing in a different product line. Facing new competitors would be a challenge on the part of the company. There might be opportunities waiting for the company. It is also an additional income for the company if it becomes successful. And to meet the needs of the customers by providing new products would lead to an aggressive and healthy competition. It also helps build the economy of the country if there is new development in companies. And it also leads to high employment because there's a need to hire more employees to implement the new business activities.

The competition among rivals is very high due to price and non-price factors. Companies try to attract customers to their products by introducing

The third advantage is being able to outsource work when the need for production rises. Instead of having to hire additional employees to augment the increase in labor, a company will have a set staff and then when the need arises, they will hire out for the additional work to be completed.

export capital (factories, jobs, resources) for production abroad (remember, you will want to concentrate on the ethics of this proposed action, rather than the political or legal implications) on

One of the core tenents to running a business is for a business to make money and to increase in size. As a result of that engaging in activities that increase a businesses capability to make money and increase its size is of great importance. Furthermore, as a result of that focus on increasing the sizes of businesses, globalization has furthered the spread of business. Globalization influences the world economically,

Competition serves as an effective mean for businesses to identify ways to improve product quality, charge lower price, and to increase efficiency. Business that can offer the highest product quality at the reduced costs will succeed in a

A process known as globalisation links different countries around the world together through different ways such as trade, investment, migration, internet, social media etc. Global trading is a major aspect of globalisation where different countries import and export goods and services with other countries. Globalisation has significantly changed over the past 30 years. Economies of scale has led to an increase in the production of goods, thus, created the need for expansion of markets beyond domestic boundaries. In addition to merchandise, various types of services are rendered to customers globally. This includes IT support, tourism, financial services etc. Globalisation has led to an upsurge in trade, multinational corporations, greater dependence on global economy, and easier movement of capital, goods and services and

Globalization is difficult to simply define due to the variety of changing definitions that have been established over previous decades. Hamilton and Webster (2012) suggest that globalization is the connection between nations, defining globalization as a process in which barriers are reduced in order to encourage exchanges between countries. This view proposes that globalization refers very much so to the trade barriers and the improved communications between countries in order to ensure the world is unified. Globalization increases economic activity across the world and opens up markets for foreign investment.

Competition being one of the major issues that often must be addressed in the business world, it is important for a firm to learn on ways to reduce the impact of the competition. Competition is definitely an important factor in helping a business

Competitive rivalry exists between companies with the same or similar products/services and similar markets. Factors to be considered include:

The negative effects of globalization come like a fringe with its advantages. As countries companies and consumers are benefitted through globalization process, it is also bringing some disadvantages for them.

Globalization offers industries many ways to increase their profits. Since businesses and corporations have access to a wider range of potential clients, they have a chance to increase profits. Global competition also

A highly competitive market wherein the corporations compete in lobbying for clients, profit margins tend to be tremendously low. It should be mentioned, however, that competition can take area now not best at the level of fees. Enterprises also can attempt to advantage gain through citing the product from others - for example, thru its development, to offer extra services associated or through in-depth merchandising of their emblem. Create relationships with clients - as an example with the aid of creating loyalty applications, exploitation of friendship and familiarity, or even through vertical diversification, or acquisition of shares in the purchaser organisation. Create or use of latest, non-well known distribution channels. Price opposition - presenting merchandise at a lower fee by means of giving up part of the margin or lowering production charges. There is many factors that affects the level of competition. The severity of competitive rivalry is different in each market. Most often competitive rivalry in the market intensifies in the case of at least some of the following elements: A huge range of competitors - in markets, which can be divided among a huge number of smaller competitors, there may be generally lots more excessive competition than the ones ruled via some firms. Low marketplace increase -

People around the world are more connected to each other than ever before. Information and money flow quicker than ever. Products produced in one part of a country are available to the rest of the world. It is much easier for people to travel, communicate and do business internationally. This whole phenomenon has been called globalization. Spurred on in the past by merchants, explorers, colonialists and internationalists, globalization has in more recent times been increasing rapidly due to improvements in communications, information and transport technology. It has also been encouraged by trade liberalization and financial market deregulation.