The Benefits Of Globalization

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Globalization – The Reasons and Risk The establishment of free trade by various governments over the past twenty years has triggered an increasingly integrated worldwide economy, encouraging globalization to form. Globalization among organizations refer to their ability to source inputs, make, and sell goods and services on a global scale. Consequently, as globalization spreads and diverse countries become intertwined, domestic corporations are finding compelling reasons to develop into multinational corporations (MNC) (Investopedia, 2017). Furthermore, growing into an MNC may mitigate an organizations current risk. Even though some risk exist for MNC’s that may not exist for domestic organizations, the potential benefits outweigh these challenges. Therefore, while globalization has is adversaries, organizations hoping to maintain a competitive advantage in a changing economy are strong proponents of the globalization process. Benefits of Globalization Through the process of globalization, domestic organizations will experience a number of added benefits as their firms shift to become an MNC. Primarily, organizations can anticipate the company to obtain a greater competitive advantage, as well as, market share. Due to the comparative advantage of different nations, organization who expand into these areas can subsequently produce goods or services inexpensively and more efficiently (Investopedia, 2015). Factors such as natural resources, workforce productivity,

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