The Impact Of Globalization On Amazon

1105 Words5 Pages

Globalization is a process of interaction and integration among the people, companies, and governments of different countries, a procedure compelled by international trade and investment, and supported by information technology. Furthermore, this process has an effect on various other systems such as on the environment, culture, political systems, economic development and prosperity and lastly, on human physical well-being in societies around the world. “Since 1950, for example, the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to $827 billion” (York, 2016). Technology has been another primary driver of globalization,
…show more content…
With the aid of globalization, Amazon has been able to get abundant profit from all over the world through the exports and imports of products from one nation to other. Consumers of Amazon can order products for cheap most prominently from China, as they have cheap labour there, which results in the decline of total cost of the product. Amazon was one the first companies that had the unique idea of setting their whole market online, in which they sell various products from children’s’ toys to novelty books. Their success is primarily based on their fast shipping, high-quality products, and abundant quantity of products.

The primary benefit which amazon got from globalization is that it got its global franchise in 14 countries- “Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Netherlands, Spain, United kingdom, United states” ( Inc., n.d.). In 1994, when Amazon was founded it was running out of the founder Jeff Bezos’ garage, making $20,000 per week in profit. Recently in 2014, Amazon has acquired the title of “The Everything Store” with 154,100 full time employees working for it, and it earned $90 billion in revenue. Amazon has broadened its market by allowing sellers to sell their new and used items along with Amazon products, giving customers
…show more content…
It has various global opportunities as it is growing, it will generate more employment and will have a greater impact in the development of the society. Along with this, it has to face various challenges as there are several other competitive online websites but Amazon is over-coming every hurdle by its innovative ideas. Amazon made more delivery options available to which they named “prime amazon” where consumers can receive their order the next day. Not only this but it also provides free trial of membership so that it can interact more customers and for students there is a student membership which is a bit cheaper than regular membership. Amazon is efficiently and effectively responding to the challenges faced by

More about The Impact Of Globalization On Amazon

Open Document