Social globalization describes an exchange of values, ideas and it has facilitated the promotion of equality, dignity and human rights. Finally, the major effect of globalization is produced in the world economy. The aim of globalization is the growth of the global economy by giving firms a superior competitive position with lower cost through free trade and by increasing the number of consumers, products and services. Some people said it helps developing nation-states to “catch up” the industrialized ones and it improves the overall standard of living. Nonetheless, there is a risk for smaller companies that cannot compete in an international market and world governments should promote international investments and try to eliminate barriers to trade even if it causes them some
Exports adds to the earnings of an economy, and has helped so many developing economies like India and Central Africa. It is has eliminated the shortage of goods by allowing countries to import. It also aids price stability because if a price of a product is very high then it can be
The ability for countries to cooperate could lead to new jobs, workplaces, culture, more money and ideas. Lastly, another pro for globalization is it allows for cheaper products for Americans to purchase and lower prices. This is due to the cheaper labor that makes the product. Cheaper prices
In theory, increased competition means more products on the shelves and lower prices. FTA has numerous advantages and disadvantages, now I will tell about advantages of FTA. As a first, it can increase production for both countries. The purpose of trade is to provide access to a greater variety of goods
To some extent, globalization has been positive to the world, not only can it make more efficient markets, but also it creates more opportunities for firms in developing countries. In general, economic globalization is dominated by developed countries, the developing countries tend to be at a disadvantage. It has widened the gap between rich and poor. Globalization is a double-edged sword, as the popular saying goes, everything has two sides, just like a coin.
The rise of globalization has created interdependent markets that highlight the pros and cons of leveraging foreign exchange. Many proponents of global business argue that mutual benefits derive from the global specialization of products and services. The general stance is that the benefits of globalization outweigh the economic and social costs by achieving higher efficiency and by providing GDP growth in underdeveloped regions. (Boundless, n.d) Globalization offers many Benefits and advantages to the people and businesses. Just to mention are few, these include: • Greater employment opportunities for people.
Globalization have the important role in the developing countries has certain advantages such as technological process. It has a lot of benefit in our daily life. It helps the country prevent poverty problems, creating job opportunities for the people, periphery countries depend heavily on the develop countries for raw materials, food and oil. That can be benefited the other country and it decreased the possibility of war among the countries. Many developing countries do benefited from the globalization.
No doubt economic globalization has several benefits, but it can become a problem for long term if it is not resolved in time. It has a potential to leave an impact on the whole economy, which eventually would disrupt the working conditions of a country, especially in case of developing countries. So, the research questions arise that: How would local hiring as well as income allocation structure get affected, in case domestic firms comes in the contact of economic globalization with their individual choice? And In what way does hiring stucture present in a country, which is also associated with decline in poverty and income allocation get influenced with introduction of FDI in the system? Also, How the issue of disparity existing among nations could be minimized?
• Good procurement processes can facilitate suppliers’ coordination and improve forecasting and planning. Better coordination lowers inventories and improves the matching of supply and demand. • Appropriate supplier contracts can allow for sharing the risk, resulting in higher profits for both supplier and the buyer. • Firms can achieve a lower purchase price by increasing the competition through the use of
Due to transportation become easier in globalization, outsourcing in MNEs are more frequent in recent years. They are headquartered in one country, move some process of their jobs or production to lower-wage countries, this usually could help companies reduce costs. Bharti are outsourcing their IT system to western multinationals. It is one of the reason that Bharti Airtel is growing