Negative Benefits Of Globalization

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Globalization is a phenomenon where people change their mind of local and nationalistic perspectives to a broader way that world is interconnected and interdependent with free transfer of capital, goods, and services across national borders. Business can be done not only within a small area but also across the world due to the advancement in technology, transportation, communication and etc. Globalization enables the companies to be cost competitive in their own market and in overseas markets. Global sourcing is the process where the companies seeking out the cheapest materials from around the world to reduce the cost of production. As this goes on, the revenue of the company will increase and thus the company is able to generate profits to shareholders. Besides that, globalization helps companies to access to larger markets hence firms may experience higher demand for their products and leads to a reduction in average production costs. In the general economic area, the globalization is integrating the world into a global market. Globalization can lead business environment to be competitive. Companies have to pay more and more attention on the customer and market orientation where a company focuses on discovering and meeting the needs and wants of its consumers to satisfy the consumers and maintain the customers’ loyalty, having competitive advantages in the market to be outstanding in the market or industry. Rise in market competition has significantly affected the

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