In the business world, the benefits of globalization are not just limited to profit maximization, but also provide other advantages equipping business to carve a niche for itself in today’s highly competitive market. The most significant benefits of globalization on business could be increases in competitive advantage, global collaboration, foreign trade and outsourcing. One of the benefits of globalization on business is the rise in competitiveness of a business firm. Every business, in order to survive and maintain its market share, must have a competitive lead apart from other firms. An increase in competitiveness boosts the efficiency level of the business as they can produce their masterpiece goods or render services that are well known.
This helps in retention of customer vale and hence increasing the value chain system under monopoly. • Dynamic Efficiency It’s a new incentive to make specific research and development so that new technologies can be built which in turn result in economies of scale or make a patent right for the firm. This helps in gaining more market power. MONOPOLISTIC and MARKET POWER MC firms have some degree of market power. An MC firm can raise its prices without losing all its customers.
According to Dogra (2011), there are many benefits in terms of economic growth to a country. Immigration is a process which increases consumers by a large percentage. Furthermore, it is very beneficial for companies to get profit and sell their products in their relevant field. In addition to it, more and more immigrant’s leads more sales taxes it helps to a country to boost their economy. Insurance is also a advantages thing as well as increasing loans, real estate taxes for a country.
International trade is also knows as a globe trade which give the country opportunity to expands their markets for both good and services that otherwise may not have been available in other countries. This type of trade also give advantages for world to rise the economy in term of prices, supply and customer demands, affect and are affected by global events. All of the good and services can be found on international market. International trade will involve two types of process which be export and import. Export is a function of international trade in which the goods produced in a country will be sent to another country for future sale or trade.
A growing international presence will, therefore, can make it easier in the future to continue expansion opportunities this is because of the increase brand recognition. This will helps a business to be able to employ staff locally. 3. Sales will definitely increase when more customer are introduced to business: - it is rather simple to recruit an international sale force these days. From freelancers to distributorship to the web, marketing can happen at local level better than ever before in almost every part of the world.
According to Intriligator (2003) other important advantage is that companies are able to increase their size to multinational and international level. This generates an increase of power, profits and productivity, since these companies can choose different nations as sources of materials, installations and productions of market adapting to that best suits
*It creates a sense of co-operation between nations and develops a good relation amongst them and also the other countries dependencies on the reporting country’s increase making them powerful to some extent. *Trade allows a country have access to the resources which otherwise would have been unavailable to the particular country. *when trading, the increase in exports of the reporting country is beneficial to the country and it leads to trade surplus and improves the balance of trade. *When a country actively participates in trade, it then appears more attractive to foreigner investor and the likelihood that foreigner investors will invest more increases. *last, but not the least, trade can be a great way to show your pleasure or displeasure
Thus, making employees be more productive. However, integration of international markets have led to costs for some companies and as well as it benefits others. Therefore, these are a result of three effects of globalization which are the expanding of markets, cheaper resources or perhaps a mixture of the two. ii. Technology: every organization can have the advantage of technology; reason for this is that technology helps organize the work environment.
Nowadays, internalization becomes very popular and important strategy for Companies all around the world. More and more firms try to go abroad for personal benefits. There are several purposes why company can benefit from going abroad: 1. Since Company increase market size, it will also increase production and they can benefit from Economies of scale 2. Diversification in another economy will reduce the risk.
Globalization is right for sure countries, along with the ones within the evolved world or global North where wealthy countries just like the U.S., united kingdom, and Germany can sell extra products and items to new markets inside the global South or poorer nations which include the Philippines and Indonesia. Globalization plays a vital function in presenting no longer only products and services but also method of living and the manner of boom and improvement. the following are some of the monetary benefits of globalization in connection to overseas groups: • Reduces worldwide poverty via imparting work to people. • Contributes to the spread of era by way of introducing new techniques of development. • Provides to the profitability of companies and agencies via earnings and global income.