It is depends on the existing firms and the “height” of barriers to entry that attributes of an industry’s structure. The threat of new entrants will affect by: Firstly, the economics of scale as “high” barriers to entry into the industry that can make the industry more attractive because of the existing firms can earn expect above normal profits. Secondly, the product differentiations that the existing firms have their own brand identification and customer loyalty that will lead to new entrants use more costs to start other industry and then reduce their potential return. Thirdly, cost advantages independent of scale mean that the existing firms have a whole range of cost advantages. There are proprietary technology, managerial know-how, favorable access to raw materials, and learning-curve cost advantages.
Su, et al. (2015) point out the importance of timing of being ISO certified that firms gain strategic competitive benefits against their non-certified rivals. Juran (1995) discusess increased competitive gains with certification is the main reason to register for ISO management systems. In addition to them, ISO certifications help to decrease transaction and search costs of buyers substantially. However, it is also apparent that large industrial buyers in countries demand ISO certifications from their suppliers and on one hand, this adds up the competitiveness of the companies since the transaction, search and information asymmetry costs decline in line with ISO adoptions (Juran, 1995; Ferguson, 1996; Struebing, 1996; Uzumeri, 1997).
which contributes to social diversity. The term “glocalization” is utilized to imply that the contrast in customer tastes, customer behaviors and buying habits in myriad cultures forces international firms to customize their products to suit local needs. Take an example, a favorite merchandise in Japan can become an inventory item in Canada or an efficient advertisement in USA may be impolite and counter-productive in Vietnam. Therefore, it is considered as a challenge for the globalization process. In addition, advancement of technology, growth in economy, higher living standards likely widen the gap between the rich and the poor and lose the balance in society.
Clearly, as a phenomenon that affects the areas of the daily life of the inhabitants of a country, has implications both favorable and unfavorable to different countries. This model is widely criticized because it is common to developed and more power over other countries, countries gain a greater benefit than smaller countries and underdeveloped. There has been talk of great and rapid growth in some countries over the short and almost zero growth in some others. When talking about globalization a loss of sovereignty by nations which many claim against this phenomenon is also shown. Cultural impact of globalization We can say that culture is the set of forms and expressions that characterize a given society.
For e.g., multinational companies are creating technologies that will reduce their adverse impact on the environment. Unfortunately, the impact of globalization outweighed the positive effects, On a global level, resources are getting overused. This is because there has been a acceleration in demand and
As globalization has increased so has trade and FDI. These changes have resulted in the reduction of barriers between countries and a growing change of the power structure of the international system. Multi National Enterprises (MNE’s) and other companies have been able to remove some of the power from the governments and gain more influence in how the world works. With how things stand in some countries today it is possible for a foreign company to sue its host country if that country adds governmental regulations like environmental restrictions that end up decreasing the companies’ profits. This ability by these companies is a fairly new idea and continues to change.
Proponents of globalisation advocate that globalisation has led to economic growth and development leading to better living standards worldwide and benefiting the whole of human kind. This has not been entirely true, some countries have benefitted more than others, there have been visible signs of economic unevenness despite the promises of globalisation. Economists advocate for global economic convergence, that poor countries will soon catch up to the rich developed world. This paper attempts to discuss causes of this economic unevenness focusing on the international institutions that influence the process of globalisation and this has made global economic convergence nearly impossible. KEY WORDS : global economic convergence, economic unevenness,
The prevalence of outsourcing has become “an essential part of business activities in the era of globalization” (Thangavelu & Chongvilaivan, 2013, p. 27). While on the one hand, outsourcing not only saves time and money but also creates opportunities of accessing new resources and exchange technological innovation, on the other hand, it decentralizes more and more business processes and disbands domestic jobs. The heated debate over ethical challenges, particularly over labor legislations, pulls public focus away from the extensive opportunities outsourcing provides. Nonetheless, when weighing the key advantages against the disadvantages (excluding the extent and impact of the ethical debates) it is evident that companies gain from outsourcing in the short-term as well as in the long-term. The planning process of outsourcing itself should involve project risk management (Deering, 2014, p. 17), which would overall allow a company for receiving the highest possible profit of
The clear impact of trade barriers is to keep occupations from being lost to foreign competition, which is a contention utilized by numerous particular vested parties to legitimize different sorts of trade barriers. Over the long haul, nonetheless, trade barriers power customers to pay higher costs, since items that could generally be made affordably abroad take more assets to deliver locally. Expanded Costs to Domestic Suppliers: Price climbs because of trade barriers don 't simply influence purchasers. It additionally puts a strain on firms which supply raw products and wares to domestic industries. Without trade barriers set up, such firms can depend on the law of comparative advantage, implying that it would cost them more to attempt to discover a certain raw material in their own particular nation than it would to purchase from a nation rich in a specific commodity.
Economic globalization has had quite a destructive impact on state regulation. The more competitive a nation is, the lesser the regulations are. Though this tactic is quite successful in attracting multinational corporations, it is also destructive in nature. In order to compete with such nations, other states are also forced to decrease their regulatory measures if they wish to get foreigners to invest in their country. Foreign investors are now consuming the money that should have been legally invested in maintains the rights of the public socially, economically and culturally.